OCIO Process

Ordinary Portfolios

Ordinary Portfolios

  • Usually consist of 25 open-end funds and 1 money market fund (no ETFs or individual stocks/bonds).
  • Average fund owns 836 securities. Due to redundancy of overlapping holdings, the portfolio indirectly holds 21,733 stocks and bonds (only 3,600 listed equities in the US).
    • Significant overlap in the stock holding throughout the portfolio which adds to increased transaction costs and to potentially higher instances of realized capital gain.
  • The average fund in the portfolio has an annual turnover of 65% per year.
    Owning this many securities leads to mediocre returns and is akin to owning a giant yet very expensive index fund.
Customized Portfolio Construction

Customized Portfolio Construction

  • Using some of the industry’s most sophisticated software to deconstruct the holdings in a portfolio to provide valuable insights on structure, efficiency, asset quality, costs and performance. This audit is not intended to serve as investment advice or as financial plan.
  • Our wealth advisors invest considerable amounts of time with clients understanding their specific needs.”
  • This information and insight is provided as a tool to help clients achieve their goal of building better portfolios.
    • Fewer holdings and less overlap has the potential to reduce costs (and taxes in non-qualified accounts) while generally contributing to better account performance.