Wealth & Finance International - February 2017

Wealth & Finance International 76 Asset Allocation ew Providence Asset Management serves as an outsourced investment office for endowed not for profit institutions and select private families. The firm manages multi-asset class portfolios for a portion or the entirety of client capital. Managing Director, Alan Mason, tells us more about the firm and its clientele. “Without sounding like an advertisement, institutional investors and high net worth clients are embracing investment outsourcing models more than ever. OCIO models deliver timely asset allocation and manager decisions while further delivering professional global investment advice with fiduciary responsiveness. We bring our clients a discretionary, multi manager approach that affords flexibility with customized asset alloca- tion which addresses the client’s investment mandates. Our portfolios are designed in separate managed accounts or incorporated in com- mingled funds and are designed to deliver strong risk-adjusted returns. As we are an open architecture firm clients will not be sold third party products after they are on board. We do not have conflicts of interest and our employees invest a long side with our accounts assuring a full alignment of interest adding an additional layer of confidence. We are solely here to address their needs in the most efficient manner possible. “We have an 18-year history and an extremely good record for client retention. Our customers appreciate knowing that we understand their investment goals and know that we are there to address changes at a moment’s notice. Our clients appreciate knowing that they will have portfolio managers and firm principles that are assigned to the account and will be there to answer their impending questions.” Alan specialises in client and prospect communications. In this role, he is responsible for identifying and reviewing the future business develop- ment for New Providence. “I review new requests for proposals from institutional investors such as universities, foundations, state and local governments and other non for profit organizations,” he explains. “It is imperative that I delineate the flexibility our resources and expertise lend to our client’s overall invest- ment strategy. Making sure that the client understands that they are not removed from the investment process and that managers they will be introduced too are not always accessible to the public. Understanding our client’s goals is not robotic and getting them correct when changes occur is most important.” New Providence has a ten-person investment team and, although the firm employs about 35 managers annually, it is always in the review process to the tune of 400 managers a year. Alan tells us more about the team. “Our five investment strategists are responsible for all final decisions re- garding asset allocation and the selection of external managers. We place an equal emphasis on these two activities in adding value for clients. Our team prides itself with customer communication that can range from global politics, tactical asset allocation or upcoming fiscal issues.” With regards to the future, Alan sees both opportunities and challenges ahead. He explains more about the issues that the industry is currently facing, and how these can be turned around for a positive outcome. “There seem to be challenges in every market environment – when assets are inexpensive it is generally due to weak and uncertain eco- nomic environments. When markets have been doing well, prices are frequently high. We are in a fully valued environment in many markets. We face uncertainty regarding global growth as rates rise, and regarding the impact of policy change for specific industries and geopolitical reactions. We remain bullish on equities which continue to make up the majority of client portfolios, and we are focusing on the use of high conviction managers who manage relatively concentrated portfolios. “As an Outsourced Investment Office which has been in business for over 18 years, the opportunities are significant in that many small to mid-sized not for profit entities are realizing the limitations of an investment program managed solely by an Investment Committee, or a Committee assisted by a consultant. As the trend for OCIO becomes more familiar to institution- al investors the more the model grows. The complexity of the markets, volatility and the costs of maintaining investment staffs has led more insti- tutions to partner with OCIO’s. Trusted advice, risk management and the delegation of tactical asset allocation make the investment process more efficient with the added value of fiduciary accountability. The increasing interest in outsourcing key discretionary activities is generating significant growth in our industry (OCIO) and our business at New Providence.” Company: New Providence Asset Management Name: Alan Mason Managing Director Email :[email protected] Web Address: newprov.com Address: 570 Lexington Ave. New York, NY 10022 Telephone: + 1 646 292 1225 Alan Mason is Managing Director of New Providence Asset Management. He goes into depth about the firm and the challenges that lie ahead for the industry. N 1702WF60