Discretionary Consulting, also referred to as OCIO (“Outsourced Chief Investment Officer”), Fiduciary Consulting, Implemented Consulting, or Full Fiduciary Management, has attracted interest from Trustees interested in a more efficient way to implement their investment program. Discretionary Consulting provides the investment consultant with the discretion to make and execute decisions without seeking prior consent from the Trustees. Depending on the needs of a Fund, a Board of Trustees can determine the level of discretion given to a consultant.
Discretionary Consulting Services (“DCS”)
With DCS, IPS reports on performance of total fund and investment managers and makes all investment decisions including the addition or removal of investment managers, tactical asset allocation, and rebalancing of assets without prior approval by the Trustees. IPS monitors separate account investment manager compliance with the investment policy statement on a daily basis and all actions taken by IPS are provided in writing.
- Trustee education
- Review and revision of investment policy and guidelines
- Commission recapture provider search, if needed
- Custody bank searches, as needed
- Attend Board of Trustees’ meetings and any special meetings
- Quarterly compliance monitoring of all investment managers
- Daily compliance monitoring of separate account portfolios
- Active asset allocation strategy recommendations with expanded upper and lower ranges
- Investment manager searches, including manager selection
- Monthly and quarterly investment performance evaluation and reporting
- On an ongoing basis, the consultant will rebalance assets (within pre-determined ranges), retain or terminate investment managers, and raise cash (as needed)
- IPS does not sponsor our own investment products or proprietary manager group trusts allowing a Fund to benefit from “open architecture” when selecting investment managers
- Written executive summary of all actions taken by IPS provided to Board of Trustees