Transparency
Using Institutional Portfolio Management™ allows clients to see all of their holdings and transactions in real time as they happen, giving insights into what is being traded rather than learning about those trades after the fact, as is the case with mutual funds or ETFs.
COST SAVINGS
The cost of Institutional Portfolio Management™ is included in our advisory fee. This is an important distinction as many advisors’ fees DO NOT INCLUDE the cost of the investments. SMA managers bill our advisory firm directly to receive model delivery. Thus, clients get access to best-of-class, high-quality, active management without paying expense ratios, commissions, etc.
CONTROL
Institutional Portfolio Management™ gives our client’s direct access to the underlying stocks of companies included in the SMA allocation—an important consideration when it comes to voting rights, for example. Owning individual securities also provides greater control by facilitating tax los harvesting (strategically selling specific stocks to minimize tax liability)
CUSTOMIZATION
Institutional Portfolio Management™ uses SMA allocations which are tailored specifically for each investor based on their personal investment goals and expectations, including the exclusion of any specified securities. Clients can explicitly exclude companies from their portfolio for any reason.
HIGH ACTIVE SHARE
Our portfolio construction employs SMA’s with historical data that has been rigorously GIPS audited (The Global Investment Performance Standards). We seek to use managers who have high active share (differentiation from benchmark), generally low turnover ratios, alpha generation, and strong historical performance.
BEST IDEAS
Institutional Portfolio Management™ uses active management strategies and concentrated managers –stock or bond managers with generally less than 40 or 50 holdings. Each SMA is carefully selected for a client’s portfolio based on objectives and like-minded styles, strategies and philosophies of the investor and the manager.
AVOIDING OVERLAP
Constructing a portfolio from SMAs that are disciplined in their approach, philosophy and style allows our clients to avoid overlapping holdings. Institutional Portfolio Management™ eliminates closet-indexing which increases costs and reduces returns. Managers can be Fundamental or tactical, and select investments from large, mid or small cap stocks which could be domestic or global.
