Investments

Investment Management Models

Decision Matrix – Discretionary vs. Non-Discretionary

This matrix provides a list of services with side-by-side comparisons of discretionary vs. non-discretionary investment management decision making models.

Investment Services

Discretionary  Consulting 

Investment Policy Design

Yes Optional Service

Capital Markets Assumptions

Yes Optional Service

Portfolio Construction

Yes Optional Service

Asset Allocation – Strategic Targets

Yes Optional Service

Asset Allocation – Tactical Shift response time

Greater response time due to the ability to make decisions outlined in the Investment Policy Statement Limited response time due to the need to seek approval from the Investment Committee

Manager Research/ Due Diligence

Yes Optional Service

Manager Selection – Hire/ Terminate

Greater ability to quickly select and implement managers best suited for designated asset class Investment Committee is responsible for selecting managers presented by the consultant – Limits response time

Fiduciary Responsibility – Investment Provider

Higher as a result of increased decision making responsibilities Lower due to increased role of Investment Committee

Fiduciary Responsibility – Investment Committee

Lower - Allows Investment  Committee to focus more attention on policy and governance Higher level of responsibility due to investment decision-making role

Performance Reporting

Yes Optional Service

Fees (Explicit)

Higher as a result of increased decision making responsibilities Lower due to increased role of Investment Committee

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