Serious Process. Serious Confidence.
Worry about your work, not your investment advisor.
Grounded. Radically Ethical. Transparent.
We manage assets using documented, rigorous processes.
For investing you can defend.
Investment managers should be able to articulate clearly and consistently why their investment philosophy is worthy of confidence.
Time is of the Essence – We recognize that investors often destroy capital when trying to time the markets. Syntrinsic constructs portfolios on the foundation of our long-term (ten-year) capital markets forecast while striving to take advantage of near-term (< 3 year) investment opportunities. Syntrinsic best serves investors who appreciate patient investing driven by fundamentals.
Quality Matters – In an industry that often sells quick trades, short-term profits, shiny new pennies, and overpromised returns, Syntrinsic focuses on thoughtful analysis, reasonable assumptions, intensive due diligence, and nuanced portfolio development. While we draw on passive strategies when optimal, the active managers we engage are of high quality and tend to focus on taking thoughtful, active positions within their market segments.
Objectivity Over Emotion – We have an investment process that drives objectivity. On a regular basis, our in-house research team thoroughly reviews data from multiple international government agencies and about two dozen major global financial institutions. While on the lookout for unexpected trends and risks, our data-driven process keeps us from getting pushed about by emotional headlines or scary but less meaningful data points.
All Investing Has Impact – Syntrinsic believes that investors should hold companies accountable for more than financial return and sees impact investing as a way to mitigate risk in portfolios, enhance long-term performance, and create a positive impact in society. Even if the organization decides impact investing is not a focus, we believe this should be a conscious choice.
Start a conversation.
We’re happy to share ideas, no strings attached.
Portfolio Development Process
It Starts With You
We know every organization and family is different, so we start with you.
We’ll lead a conversation to (re)establish your objectives including return needs, liquidity needs. risk tolerance, the definition of success and more.
You’ll end up with an Investment Policy Statement to rely on.
Forecast the Capital Markets
We turn to our annual Capital Markets Forecast which projects 10 years of capital market returns across global capital markets. The Forecast also expresses our near-term (<three year) market sentiment which informs how we might tactically adjust portfolios in response to more immediate risks and opportunities. Your custom portfolio builds from that base to achieve your specific goals, drawing upon equity for growth, fixed income for ballast, and alternative asset strategies as needed to differentiate risk and return factors.
Develop Asset Allocation Targets
We’ll build a custom allocation strategy that matches your objectives with opportunities in the capital markets. We review each client’s allocations at least annually – or based on changed needs in the market or needs for liquidity — to ensured continued alignment.
Deploy Our Manager Selection Process
We select managers from an open universe: That is, since we do not have financial incentives to pick one manger over another, we can be objective in our selection. For all managers, we focus on the quality of the company, portfolio management team, investment strategy, impact thesis or purpose, and bottom-line absolute and risk-adjusted performance. We recommend to clients only managers worthy of our confidence.
We revisit and document our sentiment quarterly. We have no proprietary products.
Report to You With Clarity
Syntrinsic’s quarterly reports cover a wide-array of information in a concise, clear, and useful format. Clients also have online access to reports at any time. Quarterly reports include:
|Net Returns||Risk Metrics||Activity||Managers|
|Asset class level||Risk-adjusted ratios||Historic allocation||Peer comparisons|
|Manager level||Value add||Portfolio changes||Syntrinsic sentiment|
Portfolio Changes and Discretion
Pick from three levels
Syntrinsic recommends asset allocation targets and money manager options; the client retains control of final decisions related to both.
Syntrinsic recommends allocation targets while client retains control of allocation decisions; the client delegates manager selection to Syntrinsic within policy restrictions.
Client delegates responsibility to Syntrinsic for setting asset allocation targets and selecting money managers within policy restrictions.
Manager Review Criteria
Syntrinsic uses a variety of benchmarks to assist in evaluating the effectiveness of investment strategy at the portfolio, asset class, and manager levels.
Client Objective Benchmark
Compares the portfolio’s return to a quantitative objective specific to the client’s long-term return targets as described in the Investment Policy Statement (e.g. CPI + 5% per year).
Compares a portfolio’s return to the relative weight of each asset class benchmark in the target allocation. This benchmark tracks target allocation changes over time.
Asset Class Benchmark
Compares the performance of each public market asset class to a rules-based broad market index. For alternative investment asset classes, benchmarks are based on peer groups rather than markets.
Investment Manager Benchmark
Compares each manager to an index that reflects the manager’s investable universe as defined by their style, sector, cap weight, currency or other factors specified in their prospectus.
In addition, all managers are compared to an appropriate universe of managers that invest in the same markets. These comparisons evaluate a manager’s net return, volatility, and risk-adjusted return as compared to their peers as well as their market indexes. Peer group data is accessed via Morningstar Direct, Prequin, and other sources as needed.
Meet Our Lead Consultants
Do more. Do well. We’ll help.
3840 York St, Suite 100, Denver CO 80205