Portfolio Construction

We believe every portfolio should stand on a solid foundation of knowledge of the specifics of each client’s situation. By asking the right questions, we evaluate your financial goals, expectations, investment history, and risk tolerance. By working closely with Oppenheimer Asset Management, we design an investment plan specifically for you. Once your investment plan is in place, we regularly review your objectives and make any changes necessary to keep you on track.

• Investment Policy Statement
• Manager Selection
• Asset Allocation
• Performance Reporting
• Risk Management

To learn more about our Asset Management products and services, please contact Nicolay Siclunov

We place an emphasis on setting the appropriate asset allocation and targets for the portfolio in order to achieve the organization’s objectives. The purpose of the asset allocation is to help provide diversification benefits and control overall portfolio risk. Our in‐house analysts perform proprietary asset allocation research. While portfolio returns are vital, we place an emphasis on risk management, i.e. how to reduce the likelihood that the portfolio will contribute to the failure of our clients to accomplish their mission. Risk encompasses not just the volatility of investment returns but also liquidity risk, income/operating budget risk, organizational risk, inflation risk, etc. Understanding these risks is key in order for us to provide the customized advice our clients expect from us.

OAM provides each client with a customized Quarterly Performance Report (QPR) which shows portfolio results for a client’s managers across all asset classes. Custom-designed monthly performance reports are available as needed. Monthly account statements from Oppenheimer are mailed within one week of month‐end and include information about holdings, transactions, and performance. In addition, we are able to run customized risk and return analytics upon request. Clients also have online access to their portfolio holdings, transactions and historical data 24/7 through a password‐protected website.

We place great emphasis on risk management and look to reduce the likelihood of clients not reaching their investment goals. We believe risk is not solely defined by the volatility of returns. Rather, there are a number of other risks that we consider, such as liquidity risk, operating risk and organizational risk. Understanding how these risks impact portfolios helps us deliver advice to our clients.

OAM has a process in place to reduce both systematic risk and manager risk. In order to reduce systematic/market risk, OAM works with its clients to develop a suitable asset allocation framework. This includes developing an Investment Policy Statement for institutional clients that outlines objectives, risk tolerance and investment guidelines. Having a suitable asset allocation in place provides sufficient diversification in the client’s portfolio to reduce risk to an acceptable level.

Manager risk is minimized through OAM’s due diligence process. OAM has a team of due diligence professionals that are responsible for vetting and monitoring third party investment strategies that are utilized in client portfolios. Through the due diligence process the team reviews the manager’s organizational structure, regulatory track record, and the firm’s operations, trading and compliance infrastructure. Additionally, the team looks for the manager to apply a consistent and disciplined investment process that is applied by investment professionals with a strong pedigree in order gain conviction that manager‐related risks are minimized.