OVERVIEW
Lemons are for Lemonade
Did hiring your last investment advisor feel like buying a used car? No matter how good they look and sound, it’s hard to tell how they’ll perform out on the road. It’s too bad you can’t find out how they’ve performed in the past before you hire them. Not just a few client testimonials, but actual performance. After all, that’s what you expect from investment managers, why not investment consultants and advisors?
Eating Our Own Cooking
Investment managers prove their ability to manage portfolios of securities by creating performance composites. These composites represent the asset-weighted performance of a consistently applied strategy across various client portfolios. At Compass, we decided to create our own performance composites to demonstrate our ability to create superior portfolios of managers.
Playing By the Rules
Compass composites were created using rules similar to those used by investment managers:
- Only discretionary clients, those who generally follow our asset allocation and manager selection advice, are included
- Accounts are grouped into similar investment strategies
- All performance is asset-weighted
- All discretionary accounts are included in at least one composite
- New clients are included after one month
Comparison Shopping?
If you’re shopping around for a new investment consultant, we invite you to compare our composites with those of other consultants. If you need a spreadsheet of our returns we’ll gladly e-mail them to you. Just send us a request through our CONTACT form. Just to warn you, this exercise may prove a little frustrating because to our knowledge no other consultant will provide you with these numbers.