OVERVIEW
EVALUATION
FORECASTING
DATA
CHARTER
Like a Trip to the Dentist
That’s how most investors feel about dealing with their Investment Charters. And who can blame them? Investment Charters are difficult to format and organize, let alone getting all the numbers to line up and make sense. If you do go to the considerable effort of actually creating a Charter, odds are that it will quickly fall into disrepair and irrelevance. What a waste. Well, we understand your pain and we’ve done something about it.
Better by Design
We’ve created a computer program to make Investment Charters easier to create and maintain. But before we could hand over Investment Charters to the computer we first had to sit down and redesign our model Investment Charter. The result was a logical, modular and easily maintained Investment Charter framework. You can read more about our model Investment Charter on the SERVICE-CHARTER page. Some of the benefits of our Charter system:
- Automated formatting allows clients to focus on content
- Provides mathematical consistency between asset allocation and objectives
- Audit trail functionality tracks document changes and effective dates
- Allows for easily updated documents
- Flexible structure allows client charter customization
- Model format can accommodate multiple asset pools under a single document
- Integrated with the Compass Performance Measurement System
- Integrated with the Compass Portfolio Projection System
Establish a hierarchical understanding of the investment landscape with associated benchmarks: Asset Classes, Sub-classes, etc.
Establish long-term, or strategic, allocations to elements of the described Investment Universe.
Determine acceptable investment structures, diversification levels and quality ratings and procedures for making exceptions.
Lay down expectations for the overall portfolio and also for individual asset categories using the specified benchmarks. Make sure these are internally consistent.
Identify involved parties and establish authority and responsibilities for each. Define any programmatic portfolio spending. Describe rebalancing criteria.
