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​Investing Like an Institution

VIEW WHITE PAPER (PDF)

​Institutions shift their focus from analyzing the characteristics of individual securities toward examining the makeup of the whole portfolio and how it can be managed optimally in terms of risk and reward.

SUMMARY

The largest institutions and the wealthiest Americans share a number of important investor characteristics, including multigenerational needs, sophisticated investment requirements, and a comprehensive view of risk. The ultra-high-net-worth investor, whether an individual, an extended family, a family office, or a foundation or endowment, needs to shift focus from mass market retail investment opportunities to advanced investment consulting strategies typically thought of as “institutional.”

What does it mean to invest like an institution? This white paper describes the disciplined investment process adopted by institutions based on a combination of accepted academic investment theory and sophisticated portfolio construction techniques. The process is designed to remove emotion from investment decisions and instead follow a logical approach to making prudent, rational decisions. When done correctly, the result is an investment portfolio in line with your established goals that minimizes unnecessary risk while providing returns to meet your objectives.

KEY TAKEAWAYS

  • By building an institutional-quality investment plan, you may be able to maximize your chances of achieving your most important financial objectives.
  • The goal for institutions is to construct portfolios capable of delivering a return that will cover management expenses, outpace inflation, satisfy current income needs, and continue to grow the assets at the necessary pace to provide for the eventual beneficiaries.
  • Institutional-quality investors require solutions built from the ground up, designed specifically to meet their unique profile and needs.
  • An institutional-quality approach offers access to investment managers who exclusively serve large investors, a low and transparent cost structure, a wide variety of investment vehicles, style-specific asset management, and optimal manager combinations.

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