Discretionary Asset Management – Blue Prairie Group offers a discretionary advisory service in which we, acting as a fiduciary, handle all of the day-to-day tasks associated with managing the portfolio. [expand title=”more” swaptitle=”less”] These day-to-day tasks include asset allocation and sub-asset class decisions, selection of investment options and portfolio rebalancing and reporting, all in compliance with the investment policy statement.
Our portfolio managers have over 30 combined years designing, managing, and running fixed income and equity portfolios for all types of institutions. Your Blue Prairie Group team is comprised of two senior investment consultants supported by a team of investment analysts and client relationship managers. [/expand]
In running discretionary portfolios, we follow a powerful, 4-step process:
Step 1: Understand your needs and goals.
Step 2: Develop a customized asset allocation strategy.
Step 3: Select from a universe of premier investment managers.
Step 4: Conduct ongoing portfolio management and oversight.
Step 1: Understand your needs and goals. We start each client engagement with an intensive “discovery” process, asking our clients detailed questions about their risk sensitivities, investment time horizon, and cash flow needs. We then memorialize these findings in a formal governance document, the investment policy statement (IPS), in which roles, responsibilities, benchmarks, and the overall portfolio decision-making parameters are established.
Step 2: Develop a customized asset allocation strategy. Once we have a solid understanding of our client’s objectives and a clear picture of each portfolio’s time horizon and liquidity needs, we can then begin building each client’s strategic asset allocation solution. BPG implements a core asset allocation strategy based on a solid set of fundamental views which are designed to generate maximum long-term returns while minimizing long-term portfolio risks.
Step 3: Select from a universe of premier investment managers. Once we construct an asset allocation for the portfolio, we then choose from a list of premier, third-party money managers who have passed BPG’s rigorous screening process. This proprietary process is comprised of a series of both quantitative and qualitative screens designed to capture only proven, low-cost, and style-pure managers who can deliver strong, consistent investment performance for our clients.
Step 4: Ongoing portfolio management and oversight. We know that creating a one-time, robust, globally diversified portfolio isn’t sufficient in this dynamic economy. Because the world is fluid, we manage the asset allocation of the portfolio in light of broader changes in the market and economic environment over time. This is a standard part of our rigorous protocol, ensuring that the risk/return profile of each portfolio is consistent with our original design.