Consulting Process

Phase 2: Design

In the design phase of the consulting process, we introduce appropriate strategic solutions consistent with the client's objectives, to improve upon the existing investment program.

Wurts & Associates will perform an asset allocation study that includes the modeling of the relevant liabilities. This helps our clients understand the diversification benefits of asset classes not currently utilized, assess the likelihood that alternative investment strategies will satisfy the funding requirements and optimally allocate investments along the efficient frontier.

Another important issue that is considered at this stage is the application of passive management. Our professionals are trained to educate our clients about the latest thinking regarding risk budgeting. That is, where does it pay to take active risks within a portfolio and in what proportion does it make sense given the client's requirement for alpha.

It is also important to consider the appropriateness of the various investment vehicles available to the client. The use of separate accounts, commingled funds and mutual funds must be appropriately applied to each situation depending upon size, asset class, tax considerations and diversification requirements.

Expense management techniques are also typically exposed to the client during this phase of the consulting process. Depending upon the size of the portfolio, securities lending, commission recapture and incentive fee arrangements may make sense to mitigate the inevitable costs associated with an active investment management program.

Finally, we evaluate the appropriateness of the existing policy statement with special consideration given to the risk management language contained within the document. Our expertise in this area can further protect the client from unwanted risks in the investment process.