STRATEGIC CONSULTING PROCESS
First, we determine your unique financial circumstances.
We review and analyze your unique investment and
administrative goals, objectives and needs, your investment horizon
and appetite for risk, in the context of a changing and complex
tax, regulatory, and economic and financial environment. We also
take special note of and accommodate any financial, regulatory,
legal, or social constraints. This allows us to design a portfolio
structure that uniquely fits your special circumstances.
The strategic consulting process includes, but is
not limited to, an analysis of the:
- Investment objectives and preferences;
- Prudent risk parameters;
- Asset allocation;
- Legal and other constraints;
- Net cash flow requirements;
- Administration and custody arrangements;
- Money managers performance;
- Money managers investment process;
- Fee structure
This strategic consulting process is critical. The
information gathered at this step is used as the foundation for
all subsequent decisions regarding the investment program.
DESIGN OPTIMAL PORTFOLIO
Second, we design an allocation plan that will
achieve your financial goals.
Our asset optimization program is designed to provide
an understanding of the trade-offs between investment risk and return.
These simulations assist us in determining a set of optimal asset
allocation strategies, which have the highest probability of meeting
Our asset allocation model includes a set of capital
market assumptions characterizing the expected future market performance
of the major asset classes. These capital markets expectations reflect
a five-year outlook for the broad asset classes and include expected
returns, risks, and the correlations between the asset classes.
Asset mix variables specific to each sub-asset class are incorporated
in the asset allocation model. These variables include: risk tolerance,
asset class preference, time horizon, and expected return.
FORMULATION OF INVESMENT GUIDELINES AND OBJECTIVES —
INVESTMENT POLICY STATEMENT
Third, we prepare a written IPS that provides
a framework to guide the investment process.
The Investment Policy Statement (IPS) is an invaluable
strategic planning tool for sound investment management. We view
the IPS as a working document, the contents of which will change
in accordance with any changes made to the asset allocation variables
described above. This document serves to clearly articulate the
investment process and parameters for all concerned.
The completed IPS includes risk/reward characteristics
for the investable assets, performance benchmarks, as well as control
procedures and guidelines for the total portfolio.
MANAGER SEARCH AND SELECTION
Fourth, we select 'best-of-class' managers
for each asset class and investment style.
In order to maximize our objectivity and focus on
your unique needs, we leverage the money management databases available
to us through our affiliation with Zephyr Associates. Zephyr Associates
is a global leader in the development of analytical software tools
used to analyze investment managers, mutual funds, financial markets,
and investment portfolios. Zephyr's extensive resources enable us
to study the global breadth of money managers, focusing on the best
specialists available in each asset class.
Our search process begins with a thorough screening
process where we analyze each manager's ability to generate consistently
superior returns relative to both peer group and benchmark indices.
Equally important to us is that each manager is capable of producing
excellent results not just when markets are performing well, but
also when markets are not performing well.
The search process itself follows a formal multi-step
process. When analyzing candidates for search purposes several critical
factors are considered. Among these factors are:
Quantitative - manager style, assets under management,
length of track record, fees, performance history, risk statistics,
and correlation's; and
Qualitative - manager reputation, client base profile,
geographic locations, personnel, management type (team vs. star
system), client service/communication, publicity (positive or
The result of this disciplined search process is
a manageable number of candidates for each style category.
MONITOR & SUPERVISE
Fifth, we maintain rigorous supervision to
insure that your portfolio achieves its investment goals.
Our performance evaluation process seeks to measure
the absolute and relative performance results of every investment
manager. The objective of the process is to establish a reliable
monitoring process through verification and documentation of performance
results relative to benchmarks and guidelines.
We use both internal and external performance measurement
capabilities to provide a comprehensive and informative evaluation
of the total portfolio and individual portfolio managers on an ongoing
basis. The organization and content of a performance measurement
report enables you to determine "why" performance results
were achieved, and to identify adjustments, which periodically become
necessary to maintain performance and management risk. While the
performance measurement is easy to understand, often the more important
element is the interpretation and insights, which we gather from
In summary, our investment management services include:
- A review of your current investment program;
- A comprehensive asset allocation analysis;
- A written Investment Policy Statement;
- Selection of appropriate Investment Managers;
- A review of your investment plan; and
- Performance monitoring.
Manchester Capital Management is only compensated on a percentage
fee on assets basis, with the percentage varying depending on the
size of assets.
We offer two service levels with differing fee charges:
Services Minimum $10 million in assets
Family Office Services
Minimum $25 million in assets