Understanding Your Unique and Specific Goals
The first step in achieving a custom portfolio is listening to your organization to gain deep knowledge of its purpose and goals. This includes your current state and long-term plans, including cash flows, risk tolerance, strategic initiatives, and aligning your guiding principles with your investments. Developing a strong working relationship with your dedicated investment advisor is key to maintaining a portfolio that meets and evolves with your unique and dynamic goals.
Developing Your Investment Policy Statement
Once your organization’s needs are deeply understood, we will work with you to build an Investment Policy Statement (IPS) which will meet your organization's unique investment objectives. The IPS is an essential element of a successful investment program. The IPS outlines the target allocations to each asset class, the tolerance (range) that is an acceptable deviation from said target, your current spending rates, and any guidance to accurately reflect your mission and purpose. After agreeing on guidelines, your investment advisor will build a customized portfolio strategy that aligns with your objectives and constraints. Your investment advisor proactively manages the portfolio in accordance with these ranges to help maximize achieving your goals.
Maximizing Return Within Your Risk Tolerance
The guidelines established by your IPS help to determine a baseline for your expectations and needs. We will look for the optimal combination of asset classes and managers that have the right balance of risk and return reflective of your fee budget. At the end of the day, our goal is always to create the most return with the least risk—which is specific for each client.
Managing for The Long Term
Proactive and regular communication is necessary for the success of your custom investment program. Together, your organization and its dedicated investment advisor will review the IPS on a regular basis, at least annually. In addition, our investment team continually reviews the opportunity set and risk presented by the current market. Your investment advisor will regularly touch base to review performance, talk about outlook and understand any impact to your portfolio and organization. Your custom portfolio, tailored to meet your needs, is designed to grow and sustain your investments, allowing your organization to serve its purpose and undertake new initiatives.
Our solutions can be tailored to meet your unique needs. For more information, visit pnc.com/ocio.