Investment Portfolio

Financial  institution  investment  portfolios  are  a  critical  part  of  their  liquidity.  We  have  seen  institutions  not  diversify  portfolios  trying  to  maximize  returns.  We  put  together  and  manage  portfolios  that  diversify  risks,  interest  rate  and  credit,  to  maximize  returns  and  minimize  risks.  We  have  witnessed  the  negative  impact  of  excessive  risks  in  investments  such  as  municipal  bonds.  It  was  not  that  long  ago  when  municipalities  had  their  credit  downgraded  and  the  required  rates  of  return  increased  putting  these  bonds  at  a  significant  loss  position,  which  can  impact  equity  and  income.  We  can  illustrate  and  help  manage  all  these  risks.

Our  staff  has  managed  investments  in  all  economic  climates.  We  can  assist  in  managing  risks  and  returns,  getting  the  right  mix.  We  have  even  lowered  risks  while  increasing  yields.

Documenting  investment  objectives ,  approvals  and  decisions  can  be  quite  onerous.  We  can  set  up  a  process  that  will assist  in  total  compliance.  The  more  risk,  the  more documentation  required  to  satisfy  regulatory  requirements.  Many  financial  institutions  reach  for  yeild,  but  don’t  document  very  effective  and  reasonable  assumptions.  There’s  nothing  wrong  with  the  investment  decisions,  but  the  rational  thought  processes  and  supporting  documentation  is  also  needed.

There  must  be  a  rational  investment  plan  and  policy.  If  economic  assumptions  do  not  come  to  fruition,  the  investment  plan  must  show  the  willingness  and  knowledge  to  change  strategies  and  alter  the  portfolio  composition.

We  can  help.