Our Process — Adding value Step-by-Step
We listen to our clients, identify their goals and assist them in structuring investment programs that enable them to fulfill their mission.
Fourth Street's five-step process is disciplined and prudent. Lead by an experienced team, the process begins with Discovery in which our team listens and works to understand your organization's current investment program, mission and long term goals. Once this information is identified, the next step is to develop an asset allocation and investment strategy. The third step is to develop a customized Investment Policy Statement which will serve as the roadmap for the investment strategy. After this our team implements to Investment Policy. Finally, in the Governance step, the investment program is monitored and rebalanced as needed.
Our Five Steps to Linking Capital with Opportunity
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Step One: Discovery
- Conduct analysis of current investment activities
- Review actuarial and accounting assumptions on contributions and disbursements
- Review current investment strategies
- Review legal and legislative constraints
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Step Two: Strategy
- Propose optimal asset allocation strategies
- Address strategic (long-term) and tactical (short-term) investment strategies against the back drop of capital markets
- Coordinate custody and brokerage services
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Step Three: Policy
Prepare a written investment policy statement to include:
- Investment objectives
- Investment guidelines
- Procedures for selecting money managers or mutual funds
- Procedures for monitoring money managers or mutual funds
This is one of the most important functions performed in the development and supervision of an investment program.
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Step Four: Implementation
- Propose a number of alternative money manager structures; active or passive
- Negotiate fees with appropriate money managers or mutual funds
- Coordinate custody and brokerage services
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Step Five: Governance
- Provide ongoing supervision of investment program
- Analyze the risk in the portfolio
- Prepare quarterly performance attribution reports comparing the performance of the portfolio against market indices, stated investment objectives and managers of similar style
