Our Investment Philosophy:

Our philosophy unites four key investment cornerstones to provide improvement and consistency to your insurer’s investment process throughout the entirety of the SAA Partner relationship.

Investment Process

o   Asset allocation drives the great majority of returns based on historical studies
o   Accountability & Transparency is key within the overall process


Active Management for Fixed Income Mandates

o   The less efficient nature of the asset class due to its over the counter structure
o   The necessary customization involved in managing insurer fixed income
portfolios


Passive Management for Developed Market Equity Mandates

o   In general, passive management makes more sense for developed market
equity mandates (Large Cap, Mid Cap, Small Cap) due to:
●   The greater level of efficiency in these markets
●   The higher level of fees associated w/ managing active equity mandates
●   The difficulty in outperforming benchmarks given the fee drag


Alternatives Do Not Make Sense for Insurers

o   In general, we do not believe alternatives such as hedge funds, private equity,
etc. make sense for insurers due to:
●   The high level of fees
●   Potential lack of liquidity
●   Agency problems
●   Impact to capital ratios


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