How Sub-Advisors Add Value to Your Investment Strategy
Published on by George Sparks, Andy Bertke
Building and optimizing an investment strategy takes an entire team with a variety of specialties and perspectives on the investments within a portfolio. The goal of which is to provide the client with the best and most appropriate types of returns based on the unique needs of each client. That’s why, as part of our commitment to the best investment management services, Barnes Dennig utilizes sub-advisors for their insight on portfolio design and strategy.
How does the sub-advisor relationship work?
Our sub-advisors closely monitor and actively manage the investment sleeves they manage within your portfolio. Although we design your overall portfolio, these relationships add additional value because of their expertise in certain areas of investing that help us tailor your unique portfolio for your ideal outcomes.
Compiling custom portfolios
The advisors on the Barnes Dennig Private Wealth Management team focus on building globally diversified customizable portfolios with different risk spectrums and use different building blocks to construct your investment portfolio. Our long-standing core is our U.S. or global equity strategy. Our fixed income component for the bonds creates stability in the portfolio, and then alternative investments get us into the different realms of assets with low correlation to the traditional markets.
The private equity and other alternative investments used in our portfolio designs are different from standard market opportunities. There is a variety of these types of investments with different liquidity periods. Liquidity on these investments ranges from daily liquidity to extended periods when there’s an exit from a sale transaction. We have the ability to curate those for the client depending on their specific income need, growth need, liquidity need, and preferred level of aggressiveness.
When we’re doing our internal vetting of an investment group to add to a portfolio, we use a due diligence questionnaire, asking the group to send us all the information on the firm, the principal’s background, and their investment strategy. By doing this, we’re looking for a competitive edge in the market. We’re looking for an organization that either has an edge in a particular industry or has an incredible track record in a specific area, and they’ve split off and started their own firm. We’re looking for those unique edges.
We analyze other factors as well, like audited financials and checking all the boxes in terms of operational due diligence, but we really zero in on the investment due diligence. What is their strategy? Is it repeatable? We want to be confident that the group will execute a strategy, be repeatable, and give our investors a solid risk-adjusted return without the potential for problems down the road.
What’s next?
If you want to see what investment options may be right for you, contact us today to book your first consultation. Our wealth management advisors are here to help on your journey to reaching your full investment potential.
Disclosures
Investments in securities and other instruments involve risk and will not always be profitable.
Asset allocation and diversification strategies do not ensure a profit or protect against a loss.
Investing outside of the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as well as political and economic risks. These risks may be heightened in connection with investments in developing countries.
Alternative investments are complex instruments and require a higher level of due diligence. The various strategies used by alternative investments tend to feature reduced liquidity, higher minimum investment, and potential tax implications given their complex nature. Please consult a Financial Advisor with experience in alternative investments who can help determine if this type of investment is suitable for you.
The material provided in this presentation is for informational purposes only and does not constitute individualized financial advice. The publication of this material is not and should not be construed as a solicitation to effect, or attempt to effect, transactions in securities, the rendering of personalized investment advice, or an offer to buy or sell, or a solicitation of an offer to buy or sell any security or to participate in any particular trading strategy.
