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

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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