Our Services
Committed to being there throughout the investment process.
Understanding Our Clients
A thorough understanding of our client’s unique business is essential to a successful partnership. All future recommendations are developed through this understanding. Risk tolerance and return profile are considered in conjunction with company specific liabilities. AM Best, regulatory and accounting issues are a short list of the many considerations. Businesses evolve and our ongoing dialog insures that Wellspring is able to meet the changing needs of our clients.
Investment Policy
Wellspring works with our clients to create, articulate and clarify Investment Policy, including goals and objectives, asset allocation ranges and specific investment limitations. A well constructed Investment Policy affords latitude for both strategic and tactical allocations and considers current exposures to gauge the appropriateness of all strategies and investment vehicles. Though optimization tools are used in establishing asset allocation ranges, client specific considerations ultimately drive these decisions. A custom Investment Policy Benchmark is created to monitor portfolio performance.
Strategic & Tactical Asset Allocation
Strategic and tactical asset allocation is constructed through a portfolio optimization process grounded in historical data enhanced for the current day. Together with Wellspring’s understanding of the client and management input throughout the process, the analysis results in an optimized model from which the portfolio begins to take shape. The macro-economic outlook and relative values within the capital markets then help form the initial tactical allocations, and thereby the size and composition of the core fixed income and surplus portfolios.
Portfolio Construction
Portfolio construction within the strategic and tactical framework begins with an aggregation of all known and appropriate investment vehicles sourced from manager & securities databases, the street, and industry connections. Despite active or passive objectives, comprehensive due diligence of managers is performed on a best fit and quantitatively superior subset. Wellspring will negotiate fees (utilizing our scale across client portfolios when appropriate) and terms, create guidelines and custom benchmarking, as well as manage the transition to the recommended and approved manager(s).
Portfolio Monitoring
Portfolio monitoring is a feedback loop given market inputs to the tactical asset allocation and portfolio creation process that continually tests the portfolio for allocation efficiency as well as the means by which that allocation is achieved. Tactical allocations are constantly challenged in search of a superior portfolio risk return profile within allowable constraints and client specific considerations. Manager due diligence is an ongoing process both qualitatively and quantitatively. Performance metrics are monitored versus customized indices and peers, performance attribution is scrutinized and managers are challenged when appropriate.
Client Specific and Customized Capabilities
Wellspring has the flexibility and resources to deliver customized services as client’s needs arise. A list of our customizable capabilities includes but is not limited to, assistance with corporate finance, outsourced investment accounting and custodian search as well as potential target analysis. It is not uncommon for Wellspring to attend AM Best meetings with our clients, assist with Street analyst inquiries and have ongoing dialogue with investment committee members should situations dictate. As needs change, we are capable of delivering creative solutions and assist in any way that benefits the successful partnership with our clients.