We advise institutional investors on their investment programs through non-discretionary arrangements which are tailored based on each client’s structure and program goals. For some clients, we provide services across the portfolio at every stage of the investment process, serving as an extension of the client’s investment organization; for others, we provide specific, customized project work to complement in-house programs and initiatives.
Program Development and Review
- Crafting and maintaining policies and governance documents that reflect sound investment philosophy, industry best practice, and the unique governance environment within which each fund operates.
- Asset/liability modeling, including both deterministic and stochastic approaches and using PCA’s own forward-looking capital market assumptions, to understand the ability of current and alternative asset exposures to meet the needs of the plan.
- Asset allocation modeling and portfolio structure analysis customized to specific client needs with a focus on multiple risk factors, including liquidity, growth, income, real returns and inflation.
- Market research and intelligence combined with a disciplined manager search and due diligence process to identify best implementation opportunities in the current and anticipated market environment. Fee analysis and negotiation, and transaction cost reviews enhance program cost efficiency.
- Benchmark and indices review and analysis matched to role of asset classes and risk/return objectives to support long-term program measurement and management.
- Important ongoing operational assistance, including staff/board education, legislative or administrative testimony and/or support, trading costs controls reviews and analysis, development of programs to increase fee income, proxy voting and governance policies, and ESG initiatives, among others.
- Continuous monitoring of client investment performance, policies, asset allocation and portfolio structure through quarterly performance reporting process, regularly scheduled asset class structural reviews, and annual asset allocation reviews.
- Implementation of portfolio-wide risk measurement and analytic tools to act as a reasonable set of risk signals to the investor when considering the use of different hedging strategies.
- Other review and analysis capabilities, including those pertaining to divestiture, emerging markets, private markets, emerging products, currency hedging strategies, non-dollar custody issues, etc.