Our Investment Philosophy:

Our philosophy unites four key investment cornerstones to provide improvement and consistency to your insurer or risk pool's investment program.

Investment Process

• Asset allocation drives the great majority of returns based on historical studies
• Accountability & Transparency is key within the overall process
• We work with the entire “Investment Process Value Chain” to create and build value for insurance companies and risk pools:
  Allocate >>   |   Policy >>   |   Implement >>   |   Monitor >>   |   Measure >>   |   Peers >>

Active Management for Fixed Income Mandates

• The less efficient nature of the asset class due to its over the counter structure
• The necessary customization involved in managing fixed income portfolios for insurers or risk pools

Passive Management for Developed Market Equity Mandates

• 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 fees associated w/ managing active equity mandates
• The difficulty in outperforming benchmarks given the fee drag

Generally, Alternatives Not for Insurers or Risk Pools

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

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