Consulting Services
Our institutional consulting and asset management services are based on a disciplined, five-step process, which we believe has been proven over time. Clarify investment needs and objectives — Our first interviews serve to assess your financial condition, available resources, spending priorities, performance expectations, risk sensitivity and time horizon. These interviews typically involve both staff and volunteer leadership of your organization. Developing an investment policy statement — The investment policy statement is not a “canned” document; it is custom-built to your organization’s needs and objectives and serves as the cornerstone of your investment program. This “road map” includes clear milestones against which your organization can evaluate your portfolio, your investments and your policy. The Olcott Consulting Group also can address special situations, such as spending needs, socially responsible investing and liquidity requirements. Creating an appropriate asset-allocation strategy — Although past performance is no guarantee of future results, studies of large pension plans have concluded that more than 90% of a portfolio’s long-term returns are driven by the asset allocation decision.(1) Accordingly, the Olcott Consulting Group focuses a great deal of attention on this step. As part of the asset-allocation process, the Olcott Consulting Group uses sophisticated models to help identify the most efficient blend of investments within asset classes that offer the highest reward potential for the level of investment risk your organization is willing to accept.(2) Portfolio diversification is a byproduct of the asset-allocation modeling process. Proper diversification can help reduce portfolio volatility and potentially improve investment results.(3) We generally recommend that institutional portfolios contain a variety of asset classes and investment styles, each component managed by specialist asset managers or investment vehicles. Identifying and selecting investment managers andinvestment vehicles — The Olcott Consulting Group maintains a strict “arm’s length” distance from any of the investment managers or investment vehicles utilized by our clients. There are more than 40,000 money managers, no-load mutual funds and other investment vehicles from which to choose. The OCG uses a non-proprietary database and does not charge investment managers to be in any of the searches we perform for our clients. Our consultants consider only those managers we believe are appropriate for institutional clients. In the search for asset managers, we apply rigorous screens to evaluate both quantitative data as well as qualitative information obtained through on-site interviews. Monitoring performance — We complete the investment cycle by providing regular information on the performance of your portfolio and your investment managers/vehicles. Clients can monitor results and holdings online and through monthly statements. Quarterly, the Olcott Consulting Group produces customized Investment Performance Reports, executive-summary reports which combine content and clarity so that staff and volunteers alike can easily evaluate the fund’s progress and manager performance. The Investment Performance Reports can also track the consistency of a manager’s style, the source of a manager’s performance and the adherence of the manager to its stated investment discipline. Monitoring performance does not end here. As part of our affiliation with one of the nation's largest investment firms, OCG and Wells Fargo Financial Advisors combine to evaluate more than 200 investment managers each year. This process is deliberate, objective and ongoing, and combines quantitative and qualitative analysis with verification of manager provided information. It also includes an evaluation of the manager’s organization and investment team, their philosophy, process, style consistency and track record, looking for any developments that we believe might manifest themselves in our clients’ portfolios. Commitment — The commitment to clients and client services is unwavering at the OCG. We seek not just to serve clients, but to become an important extension of their organizations. We are committed to our business and to investing in it to make it ever stronger. We are actively involved in the nonprofit community, as our national reputation attests. To stay abreast of events that shape the financial markets and developments within the industry, our staff is involved in ongoing professional education. In short, we have committed our time, talents and resources to one purpose: to know and serve the nonprofit and retirement plan communities. (1) Source: Brinson, Singer and Beebower, “Determinants of Portfolio Performance,” Financial Analysts Journal, May/June 1991, |
