Our Differentiating Characteristics
We believe we can add value by leveraging our experience in working with institutional investors. Our firm is solely focused on helping organizations achieve long-term investment results that exceed their benchmarks. Achieving this objective demands a highly selective and patient process for developing an asset allocation strategy and choosing investment managers.
We are always willing to take a strong, specific and well justified stance in terms of the most effective ways to manage assets. A key aspect of our work is to ensure that clients understand the various options available and the positive and negative characteristics of each. This generally provides a framework for debate and allows clients to reach timely, well-reasoned conclusions.
We take advantage of the opportunities to spend time with top investment managers and are able to participate in discussions regarding market or risks at any point in time. We strongly believe that relatively static but well diversified asset allocation strategies are best. However, there is no question that markets periodically create opportunities for tactical shifts. We seek to help clients evaluate both their long-term positioning and current market opportunities.
The depth of our process and its intentional focus away from return information frequently helps our clients avoid the mistake of terminating talented managers during periods of what will later be understood to be temporary problems. It can also help our clients avoid or eliminate managers who have little more to offer other than their track record.
The stability of our firm allows individual consultants to serve a client consistently through time.
We have been extremely effective at helping our clients achieve long term investment success.
Note: Past performance does not guarantee future results.
Web Summit has become “Europe’s largest and most important technology marketplace”, a crossroads for the world’s largest buyers and sellers of technology, alongside many of the world’s most disruptive emerging technology companies.
It’s not just Europe’s largest companies that come to Web Summit, but over 7,000 CEOs from companies of all sizes and industries learning about what new software and can transform their businesses. They are joined by leading academics, those at the forefront of tech and business worlds, cultural icons and influencers, and key global leaders to tackle the world’s most pressing issues.
Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Tilney Group, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change. Please note we do not provide tax advice.
Like the Rubik’s Cube, your financial matters can’t be solved one piece at a time. It requires synchronizing all of the elements of your wealth – investments, tax, retirement savings, estate and insurance. Through a complete approach to managing your wealth, your Assante advisor can help you solve the puzzle to financial success.
What is Investment Consulting?
Investment consulting (a.k.a. investment management consulting or management consulting) is the business of providing advice to clients in the form of advisory and investment management services. Operating outside of their clients, professionals in investment consulting jobs are third party advisors. But as any consultant will tell you, sometimes projects a specific client can last years.
Who Uses Investment Consultants?
Pension funds are the largest users of outside investment consultants, providing advice on investment and strategic decisions. A 2011 survey by Pensions and Investments, 94% of pension funds use outside investment consultants.1 One example is the California Public Employees Retirement System (CalPERS), the nation’s largest public pension plan. With roughly $285 billion representing roughly 1.8 million members and their families, they paid out $33 million in fees to outside consultants in 2012.2 Also, charitable foundations, sovereign wealth funds, and endowments entrust investment consultants to help get investment decisions right.
Financial advisors and private wealth managers like family offices may also outsource a portion of the investment decision-making process to consultants. This ‘investment outsourcing’ sometimes includes on-demand, specialized investment solutions, and research. Consultants can help advisors de-risk their client’s portfolios through diversification and other strategies such as adding liquid alternatives (liquid ‘alts’) to portfolios.
Corporations also utilize the services of investment consultants. Offerings include implementing an employee benefits package, aiding a corporate retirement plan sponsor, human resource management, executive compensation and M&A advisory services.3
Why Use Investment Consultants?
Combined, public pensions have entrusted approximately $324 billion to hedge funds and private equity funds to seek non-correlated returns.4 And these fund managers aren’t cheap-charging fees as high as ‘2 and 20’ (2% of assets under management and 20% of profits). When the fund’s performance doesn’t beat the markets, there’s significant pushback by pensions regarding the excessive fees paid to managers. Consequently, pensions, foundations, and endowments use investment consultants to help with the fund manager selection process.
Some managers manage to ride the wave of a bull market in their asset class (stocks, bonds, commodities, etc.) without adding any alpha. Alpha is a measure of performance on a risk-adjusted basis. It compares the returns from an investment against a comparable index so it tells you how much, if any, outperformance is coming from the manager’s selections versus the movement of the market as a whole. Through detailed performance attribution models, a shrewd investment consultant can measure the true alpha of managers and determine whether they’re earning their fees.
Investment consultants help managers control risk, providing an independent voice to validate and vet ideas. It’s of paramount importance that money managers “get the investment right” as trillions of dollars of client funds and accumulated pension benefits are at stake. Financial organizations operate in an increasingly litigious manner, and the use of investment consultants can act as a risk management tool if an investment goes bad.
Professionals in investment consulting jobs also keep clients abreast of the newest strategies in alternative investment. With the proliferation of such strategies, including smart beta, market neutral, risk-parity, etc. a pension manager can easily get behind in the latest trends. Dallas Police and Fire announced plans to add allocations to hedge funds with absolute return and structured credit strategies, two popular alternative investment strategies. It is likely the fund managers were found by consultants.5