Anchor Pacific offers investment management services through separately managed accounts (“SMA’s”).
Within the SMA structure, clients maintain full ownership of the individual assets directly in their own account held with a third-party custodian bank or other regulated financial entity. As the structure segregates the assets from our firm as well as those of our other clients, SMA’s permit the client to have a customized portfolio based on their unique tolerances and preferences as well as allowing for better transparency, cost efficiency, control over risk, liquidity, and most importantly a safeguard of protection that doesn’t exist with self-clearing firms.
For multi-asset portfolios, Anchor Pacific utilizes sophisticated practice management tools and analytics to custom design portfolios that take into account each unique investor’s investment horizon, portfolio return objectives, liability structure, liquidity and income needs, diversification requirements, level of sophistication, risk tolerance, geographic location, tax status, etc., and aims to deliver durable returns in different market environments.
For multi-asset portfolio mandates, the investment process begins with the determination of a client’s long-term or strategic allocation. This will form the core portion of the managed portfolio and comprises 75-100% of the total invested funds. Depending on a client’s overall level of investment sophistication and risk tolerance, a satellite or tactical allocation may be appropriate. The tactical portfolio is designed to bring flexibility to the overall mandate in order to opportunistically allocate to different market factors.
Our approach to multi-asset portfolios begins by dividing the investment universe into five major asset classes:
We perform a risk tolerance diagnostic for clients and combine with the qualitative assessment of the “Know Your Client” process to determine the strategic allocation, which is typically expressed within a range of target levels for each of the five major asset classes.
Anchor Pacific has curated a series of specialized alternative portfolios that can be inserted into a pre-existing portfolio. These portfolios have been pre-assembled and amount to a multi-manager platform within an SMA structure that provides a meaningful complementary allocation to either a traditional balanced portfolio or the equity portion of traditional portfolio. We add value by funding allocations to actively managed vehicles and strategies we deem to be well positioned to exploit opportunities in areas of the market where substantial inefficiency and return variations may exist and/or act as portfolio risk diversifiers.
The managers we have onboarded onto our platform have undergone a rigorous research and due diligence process – our comprehensive assessment of platform managers have all been evaluated for a variety of operational, qualitative, and quantitative risk metrics.
Further, we utilize sophisticated portfolio management software and risk analytics which provide us with the ability to perform comprehensive correlation and co-variance analysis, what-if inclusionary and substitution scenarios, optimization, cash flow and liquidity modeling, stress testing, factor exposures, and attribution dissection. This enables us to construct optimal portfolios and achieve significant diversification in specialized portfolios by assembling managers that have low correlations with one another, as well as with the remainder of the portfolio’s holdings in their entirety.
Equity Hedge
Event Driven
Arbitrage
Fixed Income/Credit
Relative Value
Global Macro/Commodity Trading Advisor (CTA)
Anchor Pacific offers bespoke services which can provide clients with a more customized version of one of the specialized portfolios. These portfolios can be individually tailored to access one or more discrete investment categories, sub-categories, specified strategy, exposure mandate, and/or other specific portfolio need(s).
The managers within the tailored construction process are subject to the same rigorous assessment we have performed with our existing platform managers, as well as the ongoing monitoring of risks.
As with the assembly of specialized portfolios, we utilize sophisticated portfolio management software and risk analytics which provide us with the ability to perform comprehensive correlation and co-variance analysis, what-if inclusionary and substitution scenarios, optimization, cash flow and liquidity modeling, stress testing, factor exposures, and attribution dissection. This enables us to construct optimal portfolios and achieve significant diversification in specialized portfolios by assembling managers that have low correlations with one another, as well as with the remainder of the portfolio’s holdings in their entirety.
Anchor Pacific also performs sub-advisory services for other portfolio managers and investment advisors, which follow the same underlying philosophy and process we bring to our internal clients.