Our Approach

Our Approach

Clients / Our Approach

We deploy a comprehensive client-service approach that includes a tailored on boarding process, a full range of investment and advisory services (such as portfolio construction, liquidity management, and economic and financial research) and a suite of investment strategies and products.

Client-Centric Approach to Portfolio Construction

At IMCO, we take a client-centric view on portfolio construction, built exclusively around your unique set of needs and requirements. This means we collaborate with your board, actuaries and external advisers, and we work diligently to understand the characteristics of your liabilities and financial objectives.

We work closely with you to define investment objectives and to advise on a strategic asset allocation that optimizes expected returns, consistent with your risk appetite. This work is supported by dedicated portfolio construction and research teams. We consider asset classes and risk factors to construct durable portfolios that can adapt to potential long-term trends and market fluctuations.

Once we fully understand your requirements, we apply our expertise to analyze and construct a total portfolio using a full suite of traditional (and if needed, alternative) investment solutions that are supported by market-leading tools and risk management systems.

Our Risk Management Framework

Phase 1
Planning and Forecasting

We work with clients to identify their investment objective, risk tolerance and constraints, forecasting long-term expected returns and risk. These inputs are incorporated in Asset Liability studies in Phase 2.

Phase 2
Asset Allocation

Consistent with the long-term horizon of the Asset Liability study, we construct a strategic asset mix based on long term risk and expected return models. We assess the sensitivity of the resulting portfolio to different long-term assumptions, market shocks and stress tests. We develop alternative views of long-term capital market returns and risk to assess the robustness of the base case assumptions. Alternative asset mixes are analyzed, and stress-tests are designed to evaluate specific downside risk scenarios, such as higher inflation or short-term negative investment performance.

Phase 3
Transitioning Asset Mix Toward Model Approach

Now we translate the client asset mix determined in Phase 2 to IMCO products available to clients of all sizes. Given the expected long-term return of each product and investment strategy, we guide the transition of our clients’ original portfolio to an enhanced strategic asset mix that is consistent with the results in the Asset Liability study. The allocation to IMCO strategies remains consistent with our clients’ long-term investment objective and risk tolerance.

Timely Reporting

We understand that our clients face a heightened demand for transparency by their stakeholders and must meet regulatory oversight requirements. Accessing complete, accurate and timely information on their portfolio holdings and performance is also critical to managing risk.

Our clients can expect regular comprehensive reporting that summarizes key relevant data, so they can understand the drivers of their portfolio’s performance. Our suite of reports includes timely market and economic updates, quarterly performance recaps, summary of portfolio positioning and IMCO’s forward-looking views, among other analysis and commentary tailored to our clients’ respective objectives and risk/return targets. We interpret client-specific performance as well as economic and investment strategy research.

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