Our approach
When it comes to fiduciary responsibility and the management of institutional assets, Blue Prairie Group leads with a sound, tried and true process. We begin by working with the committee to define the key policy parameters within which the portfolio is managed and the key metrics by which success will be judged. more
The roles, responsibilities and inter-relationships of those involved with the process (committee, Blue Prairie Group investment staff, and money managers) are spelled out in the investment policy statement.
We take the time to thoroughly understand your unique situation before we attempt to create a balanced, effective investment solution. What are your goals, your spending plans, your constraints?
We put a heavy emphasis on follow-up; communicating with you on a regular basis. We realize that the investment committee is often comprised of individuals with vast differences in their understanding of, and comfort with, investment matters. And most committee members have full time jobs outside of their board role. This regular interaction ensures that we stay on track with your objectives and that you stay fully informed of the activities we are undertaking on your behalf.
Asset allocation
Academic studies and empirical evidence show that how you allocate your assets between and among asset classes is the primary driver of portfolio performance.
Using low-cost, passively managed investment options, we create low volatility portfolios consistent with the client’s return objectives. We supplement this with carefully selected active managers who have demonstrated the highest levels of integrity and a sustainable ability to add value. more
At Blue Prairie Group, we implement a sound, globally diversified asset allocation, and rebalance with discipline. We believe that in general, markets work; we do not follow fads and chase past performance. By following a prudent, disciplined, and low-cost investment approach, trustees can feel more confident that they are properly discharging their fiduciary duties.
Portfolio design principles:
Creating a robust institutional portfolio
At Blue Prairie Group, we use a core and explore approach to portfolio design:
A robust institutional portfolio, CORE, STAGE 1:
1) Equity oriented for long-term growth.
2) Primarily passive investments reduce costs and provide truer asset class exposure.
3) Refined, strategically managed asset allocation to reduce portfolio volatility without sacrificing higher expected returns on equities.
Core, Stage 1 Asset Classes:
US Large Cap
US Small Cap
Foreign Large Cap
Foreign Small Cap
Emerging Markets
A robust institutional portfolio, CORE, STAGE 2:
Although equities are the best long-term bet for the portfolio, there should be some built-in protection for times when the equity markets are more challenged.
Possible choices include deflation hedges to protect the portfolio during times of economic crisis and, short-term inflation hedges to protect the portfolio during times of unexpected inflation.
Core, Stage 2 Asset Classes:
US Government Bonds
Real Estate and Commodities
A robust institutional portfolio, EXPLORE, Final Stage:
The explore portion of the portfolio seeks risk reduction through non-correlated strategies, and improved returns through less liquid or opportunistic investments.
EXPLORE, Final Stage Asset Classes:
Hedge funds
Private equity
Other opportunistic investments