The principals that frame our philosophy include quality, consistency, and discipline, as well as diversification. We maintain a high standard of excellence through an emphasis on quality and extensive research. Our focus is on specific strategies and consistent results.
Our goal is to achieve superior, risk adjusted portfolio performance. By personalizing the investment process, our professional staff assists each religious client to articulate and to define their investment objectives. We then review with the assistance of the Leadership, the Treasurer and the Finance Office, the financial needs and objectives of the community or institute.
We believe our added value lies in our ability to understand the unique needs of religious institutes and assist these clients fulfill their financial and investment objectives.
Our strength is close, personal, consultative services with the Superior, Treasurer, Finance Office and other members of leadership. By working closely with religious institutes, we gain a more thorough understanding of the religious institute's specific needs, and utilize our expertise of the investment world to meet these objectives.
Our reporting can be customized to meet the needs of each institute. They can be as comprehensive or as simple as required. Reports are sent at least quarterly and we meet with each client at least twice a year. We are available for Chapter meetings or other special meetings that leadership feels would be of benefit.
The social agenda is long and compelling. Although many common characteristics exist among Catholic institutes, each may vary in its priority of social issues. In recognition of this diversity, we structure each portfolio specifically to reflect the concerns and priorities of each institute.
Many of our religious clients have established investment guidelines and philosophies consistent with their mission and vision statements. The tradition of these religious communities calls us to promote and support issues relating to peace and justice. We develop and monitor the investment portfolios within the standards set by your institute's guidelines and mission and maintain substantial research to monitor the performance.
As registered investment advisors and registered representatives, we have access to the best managers in the world. With over 23,000 registered investment firms to choose from, the process becomes quite cumbersome. Modern technology, business experience, investment expertise, and clearly defined criteria allow us to select the highest rated managers.
Our first step is to fully understand the specific needs and investment objectives of our clients. Then, we develop an investment strategy that includes risk tolerance, return requirements, investment guidelines and policies, and cash flow needs. Our third step is to design an asset allocation model and asset style decision. Only then do we search for the most appropriate combination of managers to fulfill these objectives.
Our obligation is to our client, the religious institute, and not the managers. We have no obligation to any bank or custodian, or any particular asset management firm. If adjustments are needed because of changes in the marketplace, we are able to respond quickly to maintain the overall investment philosophy of our clients. Once a manager is selected, the monitoring process begins to ensure consistency of performance and adherence to philosophy. In addition, we develop a "watch list" of managers in anticipation of market changes or changes within the selected management firm.
The asset allocation decision is the most important component of the investment plan. Studies have indicated that over 90% or more of a portfolio's returns are attributable to a well-designed asset allocation model.
We tailor asset allocation for each religious client based on their demographics, cash flow needs, investment objectives, and understanding of the investment process. For example, the asset allocation decisions for a retirement account might be different from a Patrimony account or a burse account. The asset allocation for a community with an aging population and needed cash flow varies from a community with younger membership and healthy ministries and/or institutions.
There are several tools made available to us thorough national religious organizations. These tools enable us to manage the investments more closely with the specific needs of the religious institute.
We believe that asset allocation is a process. Changes will occur in the market place and situations may change in the institutes. Utilizing a proactive asset allocation strategy, we adjust the portfolio or shift funds into those asset categories that are influenced by positive factors in the marketplace.
Our disciplines in efficient portfolios, utilization of modern technology, and prudent yet effective responsiveness enable us to enhance returns and control risks through portfolio construction, investment manager selection, and a dynamic asset allocation system.