Investment Solutions

From investment policy statements to spending policies and asset allocation, Trusco Capital has over 50 years' experience meeting our clients' goals and objectives in an efficient manner while minimizing the risk of their portfolios.

Trusco's approach to developing an investment policy statement starts with a thorough analysis of the client, stakeholders, political environment, regulations, assets, liabilities and obligations, risk tolerance, both short-term and long-term objectives and goals, as well any other matters that may impact the institution or the asset pool. The outcome of this analysis and discussion is an investment policy statement that is tailored to the unique needs of each organization. The investment policy statement provides a document that establishes and clearly articulates goals, objectives, roles, responsibilities, expectations, asset allocation targets and ranges, standards for investments and investment performance and monitoring and compliance.

We have extensive experience working with not-for-profit clients on spending policies and with foundations and defined benefit plans on distribution tactics. Trusco Capital's analysis begins with an evaluation of each client's short-term and long-term goals and objectives, the liabilities and obligations, the characteristics and holdings of the portfolio, legal and regulatory requirements and both short-term and long-term expectations for the capital market's investment performance. Trusco develops a spending/distribution statement that is customized to each client and optimizes the earning power of the portfolio while always focusing on the goals and objectives of the institution.

Asset allocation is a critical factor in long-term investment performance of a given portfolio. Trusco Capital has developed a comprehensive allocation process that enables the firm to develop an efficient and appropriate asset allocation for each client. The process incorporates an objective analytical framework and is enhanced by experienced investment professionals. The allocation framework can be segmented into three distinct activities:

• Efficient Frontier Modeling - derives long-term "strategic" investment solution set using expected returns, standard deviations and cross-correlation matrix analysis
• "Plus" Tactical Overlay - evaluates asset class performance looking for extremes and absolute and relative performance
• Portfolio Maintenance Strategy - maintains the optimal allocation through systematic and unemotional rebalancing