Our investment process is built on four fundamental pillars of core capabilities that we apply on an integrated basis to achieve superior results for our clients.
Liability Specification and Matched Asset Profiling. Our process begins with an extensive review and analysis of our clients' liability profile and characteristics. Whether our clients' liabilities are expected actual cash outflows, or defined by a benchmark, we help identify and control the appropriate level and disperson of interest rate risk, through the application of a finely tuned liability-driven investment framework designed to benefit our client's entire balance sheet.
Asset Allocation Modeling. Through quantitative modeling and optimization, we identify the optimal mix of fixed income and other asset sectors required to maximize our clients' portfolio income and total return potential for the targeted level of acceptable risk. We then blend the specified liability requirments from our first step with the asset allocation modeling results to define and establish a custom benchmark for risk management and performance measurement purposes.
Fixed Income Portfolio Management. After creating a liability-driven efficient benchmark, we begin constructing an asset portfolio that incorporates active fixed-income management by Arrowpoint Investment Management Company, and the selection and monitoring of managers for the non-fixed income allocations through our Investment Consulting Services. By identifying undervalued securities, we create a risk-efficient portfolio to meet the risk tolerance, regulatory constraints, gain/loss capacity, tax position, and liquidity requirements to meet our clients' needs. We then actively manage that portfolio for maximum total return in future periods.
Uncompromising Governance and Oversight. Not only is top-notch governance something that our clients should expect from any investment-asset manager, but we at Arrowpoint Investment Management Company believe it is the key to repeatable exceptional performance. Our proprietary processes and procedures are designed to shepherd our decision-making and oversight activities from beginning to end to ensure the current and future safety of our clients' assets and return potential.