Once the blueprint has been agreed upon with each client, successful implementation involves the actual building of the portfolio. Decisions such as the proper style and weights of investment managers, the appropriate performance benchmarks to use and the selection of the best custodian to hold assets are only a few of the critical areas where CTC adds value. After carefully analyzing each client’s current situation and determining appropriate goals and objectives, a timeline is established. It is continually reviewed to manage expectations and progress.
CTC’s experienced research analysts cover a broad spectrum of investment managers in all asset classes. With this research and sophisticated financial tools, CTC constructs a mosaic of managers, from active to passive, from U.S. to international, from traditional to alternative. CTC also stresses the importance of tax efficiency in the selection of managers.
In the event that asset classes are overvalued or undervalued at any one point in time, risk and return profiles for these asset classes may deviate materially from those assumed in the long-term asset allocation study. In such cases, CTC consultants work with clients to modify their asset allocation. A tactical asset allocation policy overlay is created where overvalued asset classes are reduced and undervalued asset classes are increased as appropriate within the boundaries of the investment policy. CTC’s tactical asset allocation recommendations are published quarterly in the Asset Class Valuations Report.