Governance & Fiduciary Oversight

Strategic planning backed by ongoing optimization.

A proven approach to modeling.

 

Our goal is to be an effective steward for our clients' infinite-lived portfolios. We work hard to continuously measure and improve performance. To do that, we create a plan based on extensive modeling that informs our strategic asset allocation process. From there, we use continuous benchmarking to monitor and help optimize the performance of your portfolio. We keep your needs front and center and you fully informed. That’s how Brockenbrough earns and maintains the trust of our clients.

Modeling is a critical component in the asset allocation process.

Capital market assumptions
We develop core assumptions based on detailed modeling of economic, political, and financial indicators that we review continuously.

Mispricing opportunities
Modeling can uncover significant opportunities when recessionary indicators are triggered and/or when current and historical valuations deviate.

Benchmarking is our report card.

 

We apply insights we’ve developed in our modeling process to support your organization’s Investment Policy Statement. From those insights, we then develop a customized strategic asset allocation plan. This approach creates greater confidence in the investment process among your staff and investment committees.

We report quarterly on four benchmarks: one manager-level and three portfolio-level.  It is important to note that while we measure portfolios versus these benchmarks over time, portfolio construction prioritizes strong absolute performance within risk parameters and tends to be less concerned with tracking these benchmarks too closely.

Manager assessment
This assessment compares underlying managers and strategies to appropriate benchmarks given their respective strategies.  We are patient investors and believe that even the best investors in the world underperform sometimes.

Investment policy assessment
This consists of predetermined, appropriately matched indices for each underlying asset class, weighted by asset allocation targets. This benchmark isolates portfolio value created by asset allocation and manager selection.

Full market cycle assessment
This compares the total portfolio performance to some broader, passive stock and bond portfolio. This benchmark measures risk-adjusted performance and demonstrates the portfolio value added over a full market cycle. 

Investment objective assessment
Here we compare total portfolio performance to the stated return objectives in your Investment Policy Statement. Over multiple market cycles, this benchmark shows whether our team is providing the required rate of return to support your annual spending, while preserving the corpus.
 

This site is for informational purposes only. Brockenbrough does not intend to provide investment advice through this site. This website is in no way a solicitation or offer to sell investment advisory services except where applicable, in states where we are registered or where an exemption from registration exists.