Since our beginning, we have emphasized the importance of asset allocation, which is the principal component of an investment policy. We routinely prepare investment policy statements for our clients. Our goal is that these documents provide a clear and unambiguous blueprint to govern the organization’s investments.
Our asset allocation process begins with a complete survey of the organization’s existing objectives in order to identify critical policy decisions affecting the plan. After gaining a clear understanding of the issues, we work with the organization’s staff to design and implement an investment policy to maximize the long-term objectives of the organization. Based on the results of this review, we recommend an overall risk posture, including specific strategic asset allocation targets and allowable ranges around these targets. The goal is to provide a suitable combination of long-term return expectation, risk control, inflation protection, liquidity and flexibility. We address the question of whether there are asset classes not present in the investment program that should be considered for inclusion.