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A tailored process is required to address the vision and objectives of some clients. We work closely with clients to understand their situation and develop a long-term solution based on their specific goals. We then work diligently to optimize and actively manage their portfolio according to their profile. We offer three specialty solutions.
Multi-style Balanced applies a blended investment style to a portfolio of common stocks, investment grade fixed income securities, and cash equivalents.

Liability Driven Investing options are available to address the unique circumstances of retirement plan sponsors by managing pension portfolios based on liabilities to help them meet their specific funding goals.

Socially Responsible Investing is employed to incorporate environmental, governmental, and social factors into the investment process.

We believe each client’s liabilities and objectives are unique and require a customized process.
  • A partnership with the client, the client's actuaries and accountants, and US Investment & Capital Bank is needed to be successful in this approach

  • We work closely with each client to develop a customized long-term solution based on each client’s unique risk and return objectives, guidelines and constraints

  • We work diligently to optimize and actively manage the portfolio based on that profile

Benchmark : 6Custom, based upon the client’s specific liability cash flows

The primary goal of the Liability Driven Investing framework is to manage pension portfolios not from the asset-only perspective, but based on pension liabilities. As a result, LDI strategies are designed to control pension plan risk defined as volatility of pension funded status while locking in the gains as they occur over time. LDI strategy is fully customized to each pension plan sponsor’s objectives and specifics of their pension plan, and fully reflects current market conditions and funded status of the pension plan.

The LDI approach is related to the entire pension trust, because the key feature of LDI strategy is a commitment to dynamic asset allocation. Typical LDI strategy starts with only a certain percentage of assets allocated to the LDI strategy. However, periodic rebalancing is performed over time, according to the dynamic asset allocation rules adopted at the inception of the strategy. The risk profile of a pension plan is analyzed and dynamic asset allocation decision rules are created based on the Asset Liability Management (ALM) studies, carried out at the inception of the LDI strategy and repeated every 2-3 years.

The main objective of LDI strategy is to minimize the tracking error of assets in relation to liabilities, i.e. to control the variability of pension plan’s funded status. As a result, the most appropriate benchmark for the LDI strategy is the “return” on pension plan’s liabilities, and the liability-based benchmark is the key to accurately assessing the performance of LDI strategies.

We believe earnings drive stock prices. Therefore, we focus on companies that we believe will exceed consensus earnings estimates. We buy companies with:
  • The ability to exceed consensus earnings estimates

  • Stable to improving fundamentals

  • Attractive valuations

  • Adherence to the stated socially responsible guidelines

Benchmark : S&P 500 Index

The objective of the Socially Responsible portfolio is to provide socially conscious clients with a core portfolio that adheres to their investment guidelines. The process begins by screening all existing Large Cap Core Advantage portfolio holdings through RiskMetrics. Securities identified as violating SRI criteria are eliminated and the resulting portfolio is analyzed versus Large Cap Core for any sector deviations.
If the sector weights are not equal, substitute securities must be identified to bring the SRI portfolio in line with Large Cap Core.
The identification of substitute securities is based on selecting the highest ranked stocks, using the base multi-factor model, currently held in Large Cap Value and Growth portfolios. If additional securities are needed to bring the sector weights in line, those ranked highest in the S&P 500 are considered. The portfolio is monitored for adherence to SRI guidelines and consistency with Large Cap Core.

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