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In many cases, a person of
means may have a number of investment managers each
pursuing a stated investment style. Alternatively, a
person may desire to create a series of accounts handled
by different managers. In either case, the investor may
employ the services of an investment consultant.
The consultant works as
the client’s advocate and information source to first
delineate and write down the goals of the investment
plan. The consultant may also be called on to create or
modify the investment methodology. Once both of these
vital steps are completed, the consultant will perform
analysis to determine the optimal mix of asset classes
and management styles. The consultant then selects
managers in the appropriate sectors and vets their bona
fides. Finally, the consultant monitors the program’s
performance and reports to the client.
While all the tasks
outlined above are important, the real reason for
employing a consultant is to gain a view of the
investment program and its performance unbiased by
conflicts of interest. To perform this role, the
consultant must be free of conflict themselves and be
unafraid to speak the truth. The consultant must enjoy
the confidence of the client and two-way communication
is vital.
Sweetwater’s
independent status and wealth of historical information
on managers and asset class performance as well as our
outspoken advocacy for clients provides a unique
perspective on today’s investment markets and valuable
advice and counsel.
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