Portfolio Solutions: Outsourced CIO Programs
Portfolio Solutions: Outsourced CIO Programs

Portfolio Solutions: Outsourced CIO Programs

 
 
 
Summary

Comprehensive discretionary investment management solutions, encompassing both traditional and alternative investments, that are  tailored to the specific needs and requirements of each client.

 
 
Investment Approach
Philosophy

The team believes that successful OCIO relationships are built upon a comprehensive understanding of a client's needs, frequent dialogue, an investment process that can accommodate a broad array of traditional and alternative investment strategies, and the ability to dynamically respond to changing circumstances. 

 
Differentiators
Client-centric Solutions

Specialists in partnering with investors to understand their needs and craft solutions to help them achieve their overall investment objectives. 

Expertise in Constructing Portfolios

Innovative asset allocation methodology designed to address the increasing diversity of investment options. 

Open-architecture Manager Selection

Unconstrained approach to sourcing and investing in managers that we believe have the greatest potential to generate alpha on a persistent basis. 

Strong Track Record of Investment Success

History of achieving our clients’ mandated performance objectives and investment success at both the portfolio level and underlying strategy level.

Ability to Deliver the Best of Morgan Stanley to Every Client

Employment of the full complement of investment, operational and support capabilities of Morgan Stanley1 to each mandate that we manage. 

 
 
 
Investment Process
1
Understand Client Needs

In-depth discussions to determine the appropriate governance structure, investor requirements and preferences. This encompasses legacy investments, return targets, risk exposures, liquidity, strategy or geographic concentration, correlations with existing holdings, reporting and tax requirements, among other factors.  

2
Strategic Asset Allocation

The strategic asset allocation process is tailored to the unique needs of the client and is reviewed with them regularly to adapt to changing circumstances. The team's proprietary return-source methodology is used to isolate specific return drivers—alpha, beta and liquidity premium—from each investment option and achieve a truly diversified mix of investments designed to perform well in different market environments. 

3
Portfolio Construction

A robust optimization process is used to combine different return sources in a manner consistent with the client's objectives and constraints. Further, a medium-term asset allocation process is used to adjust the strategic asset allocation weights based on the market environment, risk premia and investment outlook. Tactical views on each asset class are formed based on quantitative and qualitative inputs and then implemented through a disciplined active risk budgeting process.

4
Implementation

An open-architecture investment approach is employed in an effort to achieve optimal implementation for each strategy—both in terms of expected performance and cost-efficiency.  Both active and passive investments are used to attain desired exposures.

5
Post-investment Monitoring and Ongoing Support

Both the overall portfolio and all underlying investments are continuously evaluated using qualitative and quantitative metrics. If the performance of an underlying investment deviates from expectations, appropriate action is taken to remediate the effects of the investment on the portfolio. The team engages in continuous dialogue with fiduciary management clients to review investment performance, assess their evolving needs, provide board education and share current market and investment perspectives.

 
 
Investment Professionals  
Co-Head and CIO of the Solutions & Multi-Asset Group
20 years industry experience
Managing Director
21 years industry experience
Managing Director
19 years industry experience
 
 
 
 

1. Subject to third-party confidentiality obligations, information barriers established by Morgan Stanley in order to manage potential conflicts of interest, and applicable allocation policies.  

Alternative investments are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for long-term investors willing to forego liquidity and put capital at risk for an indefinite period of time. Alternative investments are typically highly illiquid – there is no secondary market for private funds, and there may be restrictions on redemptions or assigning or otherwise transferring investments into private funds. Alternative investment funds often engage in leverage and other speculative practices that may increase volatility and risk of loss. Alternative investments typically have higher fees and expenses than other investment vehicles, and such fees and expenses will lower returns achieved by investors.

This is prepared for sophisticated investors who are capable of understanding the risks associated with the investments described herein and may not be appropriate for you.  The information presented represents how the portfolio management team generally implements its investment process under normal market conditions.

All information provided has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.  There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. 

Any views and opinions provided are those of the portfolio management team and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes.  Past performance is no guarantee of future results.

Real estate values are affected by many factors including interest rates and property tax rates, zoning laws, changes in supply and demand, and in the local, regional and national economies.

In the ordinary course of its business, Morgan Stanley engages in a broad spectrum of activities including, among others, financial advisory services, investment banking, asset management activities and sponsoring and managing private investment funds. In engaging in these activities, the interest of Morgan Stanley may conflict with the interests of clients.

Funds of funds often have a higher fee structure than single manager funds as a result of the additional layer of fees. Alternative investment funds are often unregulated, are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. The investment strategies described in the preceding pages may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability.

A separately managed account may not be suitable for all investors. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. A minimum asset level is required. For important information about the investment manager, please refer to Form ADV Part 2.

No investment should be made without proper consideration of the risks and advice from your tax, accounting, legal or other advisors as you deem appropriate. 

 

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