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Define Investor Goals and Spending Policy
Our comprehensive questionnaire process helps us identify and understand our clients’ investment parameters. This questionnaire assists us in the establishment of return objectives based on the individual spending policies/practices or liability structure associated with the assets. |
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Review Capital Markets and Modern Portfolio Theory
We provide clients with information and education on capital markets, including our methodology used to derive expected returns and risk for various asset classes. To ensure clients understand our recommended asset allocation, we present and review our methods of portfolio modeling and optimization. |
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Develop Investment Policy Statement
Working closely with each client, we evaluate and prioritize investment objectives, which serve as the basis for their Investment Policy Statement (IPS). The IPS details the investment plan’s return goals, risk tolerances, investment guidelines, and responsibilities of the fiduciaries, custodians, investment managers, and investment consultant. |
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Perform Asset Allocation Analysis and Design Portfolio
Using modern portfolio theory, we determine the asset class structure with the greatest potential to help each client reach their return objectives and satisfy their liabilities or spending policy. During this process, we construct multiple efficient asset allocation scenarios to compare and evaluate. |
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Research and Select Investment Managers
The foundation of our consulting process is our proprietary manager research. WaterStreet’s research consists of quantitative and qualitative assessments to identify investment managers most likely to generate superior returns. While quantitative analysis reveals why a manager performed well during a specific time frame, it is our qualitative analysis that indicates the future potential of the investment manager to perform well. Expense management is also addressed during the selection process, as we actively negotiate fees for our clients and review manager contracts. |
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Monitor Investment Performance and Activity
At WaterStreet, we create tailored performance reports for each client. Our analysis and reporting capabilities include manager performance versus static or custom indices, asset allocation analysis, portfolio performance and attribution analysis, and manager universe comparisons. |
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Provide Annual Fiduciary Audit Support
We provide institutional clients with annual fiduciary audit support, which includes required legal documents, regulatory reports and bulletins, manager research and due diligence, investment manager contracts, portfolio performance, and expense analysis. |
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