Survey On Consulting: Managers And Clients On Consultants

imiadmin — Wed, 25 Aug 2010 09:30:40 +0000

“The Future of Institutional Consulting II” is the industry’s first survey of managers and plan sponsors about consultants. It covers the strengths and opportunities from each perspective and suggests ways organizations can benefit from working with consultants in the future.

Price: $1,250 USD

White Paper – Four Secrets of Management Success

imiadmin — Mon, 20 Sep 2010 02:21:57 +0000

We are pleased to present our enhanced web site, which reflects recent activity and developments at Margolis Advisory Group: the addition of Janie Kass, industry presentations and media coverage, and a growing client list. We invite you to take a look at http://www.margolisadvisory.com.

Also, our next white paper, the third in a series on building a premier marketing and sales organization, will be released later this Fall.

In the meantime, thank you for your interest and support. We look forward to continuing to advise the investment management community.

Best regards, Jeff

Jeffrey Margolis

President

Margolis Advisory Group, Inc.

85 Barberry Lane

Roslyn Heights, NY 11577

(T) 516-277-1050

(F) 516-277-1052

(M)516-318-3955

jeff@margolisadvisory.com

www.margolisadvisory.com

White Paper – Agricultural Investing

imiadmin — Mon, 20 Sep 2010 02:23:00 +0000

Agricultural Investing – A Bright Spot on the 2009 Investment Landscape, by Hunt Stookey & Philippe de Laperouse

Click for Conference Whitepaper & Background (June 22-23, 2009)

Weekly Investor Newsletter

laura — Tue, 02 Nov 2010 21:00:00 +0000

IMI ‘s Weekly Investor Newsletter. You’ll read about trends and developments not found in any of their information sources. IMI’s research department works with thousands of investors in helping them to understand their investment challenges.

Each week you can receive on your desk by E-mail the latest in significant happenings affecting investors. This newsletter service goes far behind people which are still the backbone and foundation of successful investing.

We’ll bring to your attention information that will help you shape your portfolio directions while learning about some wonderful investment products, and most of all be a responsible investor. We’ll not pull any punches either but will let you have the information unfiltered along the way.

Lastly this Investment Weekly Newsletter Service will deliver information which enables you to cross the bridge to investment strategies and products. It is meant to keep you on top of investment developments. To receive copies of this weekly service, contact rmccoy@imi-ct.com to get on our e-mail list.

(Sample of previous newsletters)

Week of June 19, 2011

Private equity deals must be thoroughly vested

In the rush to get into private investment opportunities, private equity firms should not avoid thought due diligence on behalf of their investors. Sometimes private equity managers need to be reminded they have these investment funds in trust not as an outright gift. One such prominent private equity firm coming under review recently is Carlyle. This prestigious and most successful firm is now caught up answering critics for two minor investments in China companies out of a total of 50 China investments, as reported in the Financial Times. Why all the fuss? These two companies have been accused of fraud and suspended from trading in both Hong Kong and New York. Will it affect Carlyle’s planned IPO, probably not, but it could be embarrassing. The $80 million invested in these two companies is small, compared to the $106 billion it oversees. Perhaps what concerns critics is the explanation provided by Carlyle management where they suggest risk taking was an inherent element of investing in emerging markets. Carlyle management needs to get “off the couch” and explain how their due diligence process allowed two companies to slip through. Private equity managers can sometimes display an arrogance and disconnect with handling inquires. They need to show more sensitivity to investors and appreciation for the trust they have placed with them.

Where is gold heading?

For the past ten years gold’s path has almost been straight up. In fact, since 2000 when gold was under $300 investors have been pushing its value at close to meteoric annual rate rise. Why? Some would argue that when inflation adjusted interest rates fall gold prices rise. Others would argue its rise had created an unsustainable bubble. George Soros, a large investor in gold has publically let it be known that he’s cut his exposure early this year. But according to the Financial Times, macro hedge fund managers are sticking with their positions. This includes John Paulson who made billions in betting against the subprime housing market. According to Gayle Schumacher, Global Co-Chief Investment Officer of Coutts & Co., wealthy clients are very interested in gold, a group which now represents 8% of their gold Portfolio. This significant investment interest from wealthy families is also borne out from IMI’s Ultra Wealthy Family Forums. These families are not traders but rather long term investors in wanting to insure generational wealth for their children. Many investors in gold believe there are yet to come another round of crisis which will stimulate more gold buying.

Corporate culture with some hedge funds could undercut investor confidence

Congress is not about to ignore the potential ethical fallout exhibited by some hedge fund managers. This was made clear by Senator Charles Grassley of Iowa when he requested information from the financial industry regulatory authority (FIRA) on 20 stock trades by a leading and large hedge fund. This is brought about by suspicious trading activity. This investigation has come about as the result earlier this month in the conviction of the head of the Galleon Group, another hedge fund. This investigation stems from two portfolio managers pleading guilty on making illegal trades based on secret corporate information. While the hedge fund where these trades took place has not been charged and they are outraged by the portfolio managers conduct, investors (including Congress) believe aggressive vigilance warranted in order to insure hedge fund illegal activities are uncovered. The use of non-public information for insider trading purposes will not be tolerated. Risk management officers in firms need to be more tenacious in discouraging such behavior for building personal wealthy at the expense of innocent investors.

Repatriating overseas profits

Congress is currently discussing incentives to bring back some $1 trillion in foreign earnings which are presently taxed as much as 35%. Certainly Congress should be applauded for recommending such action where companies would be exposed to just a 5.25% profit tax. Unions seem to be supporting such action too. Perhaps Congress might also wish to tie to companies an employment incentive which would see jobs in the U.S. jump quickly. While revenues to the federal government would increase perhaps they ought to be earmarked for reducing the deficit or infrastructure projects, like new bridges, long avoided. Whatever the final outcome, at all costs, Congress should be wary of companies who used these funds for dividends or other ways to reward their shareholders. Let’s hope Congress can come together soon to avoid the risk of the economy hemorrhaging.

Russell Mason, Editor

Week of July 10, 2011

Cyber Security is climbing fast on Wall Street’s agenda.

No longer can companies ignore the threats hackers pose to our privacy and security. We’ve witnessed government intrusions, we’ve seen credit card exposure at banks and now with the invasion of mobile devices through social networking, no one is safe. On a typical morning by 10AM, over 1 Billion messages are sent or received. Almost 250,000 viruses are recorded with only a few corrected by security software. The internet and its use is growing so fast from the development of powerful software, criminal groups and individuals are able to hack into companies making large sums of money. They are also reinvesting these funds in new research and developments, keeping them ahead of cyber security. Firewalls or the tracking of new hacking, so far has not resulted in solutions or prevention. New regulations could help if the government focused on the next wave of cyber crimes. The private sector cannot seem to prevent the growth in the intrusions even with criminal penalties awaiting hackers. Washington needs to put forth laws soon with “real teeth” to protect our infrastructure including business and the government. A cyber security policy is long overdue.

The recent consultant merger between Mercer and Evaluation might not spark another wave of consolidation.

IMI has been hosting Consultant’s Retreats for 25 years. We discuss mergers research, clients, technology, and domestic and global business opportunities. They are important to the institutional clients they serve, more than 15,000. Consultants firms have been growing dramatically in clients and revenues. In fact, over the past 10 years revenues have surpassed expectations. It’s only natural that some mergers would occur in this environment. To suggest a wave of mergers is about to happen is a stretch from the pundits. Already, recent mergers have resulted in streamlining of services and consultant terminations. Consultants cannot afford anymore expansion of the client/consultant ratio, which is now at 25, a 40% increase from 2005. This is one of the reasons clients change consultants. Have they forgotten that their principle contribution is intellectual capital? To dilute this by adding more clients per consultant, weakens their effectiveness.

Wall Street can’t seem to prevent executives from using non-public information illegally.

The SEC has brought 53 insider trading cases against 138 individuals and entities, 43% more than the previous year according to financial times report. Now we see that congress wants to see the SEC’s enforcement program and if they are protecting the public by acting on information from informers. The SEC’s enforcement chief refuses to give up this information to protect their investigations and this confidential information. We happen to agree. For we believe it could possibly reach the public from leaks. Perhaps there is some other workable solution. In the meantime, the SEC and the U.S. attorney’s office of New York are investigating hedge funds, company officials, and consultants for expert network firms, which match industry specialist with money managers. While the SEC might go at lightning speed, Congress might prefer-they have our trust for their leadership in investigating insider trading and determining which cases to go forward with. Clearly the record shows they are aggressive in pursuing those who have brought shame to themselves by abusing public trust as greed overtook their professionalism.

Department of Labor wants all 401k costs to be revealed.

If you listen to the mutual fund industry they would have you believe whatever the expenses to pass onto employers and employees are fair and equitable. If one accepts that explanation they accept transparency is not needed either. Fortunately, the plan sponsors are becoming increasingly sensitive to criticism. They see the winds changing to where it’s time to release these costs. Companies don’t have a clue as to what their 401k services are and what they are paying for. It’s so cloudy, much like the service and costs for running a plan where lawsuits are surfacing. In the 401k industry it’s suggested that employees’ expenses could be discriminating where the large investors are subsidizing the expenses of smaller investors. It’s a practice known as revenues sharing. This is all about to change. Starting in 2012 all mutual fund companies will have to release all the hard numbers associated with their funds. This is coming from dept. of labor, which oversees 401k plans. Expenses will need to be clearly itemized which are sent to employers. This includes separating mutual fund costs from their administrative costs which they are allowed to include in the expenses of running a mutual fund. Going forward employers will be breaking out these costs for employees. Something they have been reluctant to do. It looks like an opaque industry will finally become transparent. Hurrah for the department of labor.

Russell Mason, Editor

News Wire

laura — Thu, 18 Nov 2010 17:04:34 +0000

Notes from IMI Consultants Retreat:
Outsourced CIO/Implemented Consulting. Citing “fiduciary fatigue” and the increasing complexity of investment opportunities, some institutional investors are seeking to outsource key asset management functions, such as asset allocation and the hiring and firing of managers. Typically, trustees or investment committees decide these matters on the basis of the advice and recommendations of consultants, often resulting in delayed implementation while approvals are obtained. Outsourcing these functions permits swifter execution of decisions and may broaden the scope of investments used in portfolio construction. Consulting firms who have previously provided nondiscretionary advisory services are adjusting their business model to provide discretionary services as a response, resulting in higher fees to reflect the additional responsibility and level of service required to take on discretionary management. These new arrangements will typically replace the traditional consulting relationship. Is this a growing trend or a fad which results from a choppy investment environment? The jury is still out, but institutional investors and their advisers must ask themselves whether outsourcing these functions is a prudent response. After all, the institutional investor must still monitor the performance of the outsourced CIO and must determine whether that can be accomplished without the help of a consultant. At the same time, the consultant turned outsourced CIO must demonstrate that it has the competence and resources to act as a money manager which, of course, is precisely what a discretionary adviser is. The manager community is watching and adapting too, to see whether traditional managers can offer competing services. All involved should ask themselves whether outsourced CIO is a prudent response to “fiduciary fatigue”. After all, each party has fiduciary responsibility at some level and each needs to understand how new roles will impact that responsibility. For a free list of outsource firms and complementary attendance at the IMI E&F Solutions Forum, please contact rmccoy@imi-ct.com or Roger Levy, Managing Director, Cambridge Financial Services for list only.

Managers are Complaining About Getting into Searches
At the February IMI Alternative Investment Consultant Summit consultants explained the process in which managers are reviewed. Most consultants have research departments and others utilize traditional databases. As one consultant pointed out, “If you want to get into searches, make sure you are in databases. We will find you, trust me.” Although many managers would like to believe this, unfortunately it isn’t a description of the real world. If truth be told, few managers ever get into searches from standing out in databases. In fact one national consultant firm has utilized the same recommended manager list for years. It’s not to say consultants don’t want to learn about new products, rather it’s difficult at best when they are being loaded down with more clients, leaving little time for managers. Consultants realize they must increase their exposure to managers (products) in order to satisfy their clients’ criteria: that they are aware of the ever widening range of opportunities that might benefit their portfolios. IMI is pleased to be hosting it is 29th Consultant Congress, April 4-5 in San Francisco. More than 40 consultants are participating in hopes to meet managers. For a complete list please contact Laura Smith at lsmith@IMI-ct.com.

Growth Forecasts are Falling Across the World
India, China, Brazil, and South Africa are all seeing their GDP’s fall. The emerging market economies cannot be expected to sustain their lofty numbers to lead the world on the path to recovery. Brazil grew at a rate of 2.7% in 2011, which was half of what the government had been predicting just a year earlier. South Africa has dropped its growth forecast from 7% to 2.55% for 2012. India just announced their final quarter of 2011 grew at 6.1%, its slowest since 2009. Now we see China predicting less than 8% for 2012, the smallest growth rate since 2005. Not to be left out of these falling forecasts, the IMF just announced another drop in 2012 emerging market forecasts to 5.4%, in 2011 the same block grew at 6.2%. What does all this mean? World economic growth is slowing. China can’t sustain their 10% plus growth rates, nor can Brazil or India keep up their lofty growth. Brazil’s industrial sector is really hurting and India’s challenge is to preserve their social achievements. Perhaps this is contributing to investors turning to the U.S. markets.

Changing Investor Attitude
This was the “Mantra” at IMI’s Alternative Investment Consultants Summit. Consultants clearly have become the driving force for managers winning new allocations. We all know institutional investors are expanding alternative investments. Much of this is being driven from poor returns over the past decade of equities and low interest rates bonds. It is perhaps surprising that investors continue to maintain an 8% expected rate of return for their portfolios despite having little justification. With this kind of investment attitude managers and consultants are seen embracing new asset classes from gold, silver, oil, corn, wheat, and soybeans in an effort to not only participate in their speculative rising prices, but to compensate for expected returns from traditional assets. Also on investors radar is increased allocations to hedge funds. In fact, while the top 400 funds are adding new allocations look for this number to grow as capacity restraints will see investors turned away. While Alpha is a key component of selecting hedge funds, their ability to minimize portfolio losses as well as make money in a down market cannot be ignored.

Upcoming IMI Events:

Wealthy Families/Family Office Forum April 18 (W) Fairmont Scottsdale Princess Hotel, Phoenix, AZ
Endowments & Foundations April 22-24 (S-T) Longboat Key Club & Resort, Longboat Key, FL
Endowments & Foundations Solutions May 1 (T) Hilton Garden Inn Phil. Center City, Philadelphia, PA
Wealthy Families/Family Office Forum June 13 (W) & Dec. 5 (W) Greenwich Hyatt Regency, Greenwich, CT
Global Markets Forum July 12-14 (Th-S) Le Chateau Frontenac, Quebec City, CAN
Endowments & Foundations July 22 -25 (S-W) The Equinox, Manchester, VT
Consultants Retreat September 23-25 (S-T) Ocean Cliff Hotel & Resort, Newport, RI

Questions, comments, sponsorship opportunities:
Please contact Linda Gunneson, Senior Managing Director, IMI
lgunneson@imi-ct.com 203 622 5851 x19

IMI’s Consultants Congress -Featuring One-on-One meetings with the Consultant of your choice.
November 14-15, 2012 – Hyatt Regency, Greenwich, CT

6th Annual Summer – Alternative Investment Consultants Summit
July 19 – Hilton, Stamford, CT

Marketing Investment Services
September 18, Hilton, Stamford, CT

Please contact Laura Smith lsmith@iminy.com or Mark Price mprice@imi-ct.com 203 622 5851

Alternative Investment Consultants Summit

laura — Wed, 11 Apr 2012 14:46:42 +0000

6th Annual Summer – Alternative Investment Consultants Summit
July 19, 2012 – The Hilton Stamford Hotel – Stamford, CT
Hedge Funds, Fund of Funds, Private Equity, Venture Capital & Alternative Managers
Hear from leading consultants, endowments, foundations, pension funds on how to
develop new business opportunities with institutional investors. Listen to institutional
investors on what they expect from their alternative managers in 2012.
For more information click here: IMIAIC2012Hilton
Sponsorship Opportunities are Available, please contact Laura Smith at 203-622-5851 Ext. 24 or lsmith@iminy.com

Marketing Investment Services

laura — Wed, 11 Apr 2012 15:00:56 +0000

Marketing Investment Services
September 18, 2012 – The Hilton Stamford

We have designed this program to specifically hone in on the most crucial issues facing you toda and provide you with actionable ideas and concepts. Hear from well respected individuals fron the investment marketing, consultant, and plan sponsor disciplines will candidly discuss with you the best techniques for developing and implementing a strategic marketing approach.
For more information on this event click here: 2012MarketingInvstSvcor contact Laura Smith at 203-622-5851 Ext. 24
Sponsorship Opportunities is Available at this program

29th Annual Fall Consultants Congress

laura — Wed, 11 Apr 2012 15:17:33 +0000

29th Annual Fall Consultants Congress
November 14-15, 2012 – Hyatt Regency Greenwich

Featuring “One-On-One” Meetings with the Consultant of your choice!
An important first step in building consultant relationships. Use this time to introduce
your firm and learn about the consultants priorities in the selection of managers.

For more information Click here:Nov2012congress
Sponsorship Opportunties are Available, please call Laura Smith at 203-622-5851 Ext. 24

Endowments & Foundations Solutions Forum

laura — Wed, 11 Apr 2012 17:17:26 +0000

Endowments & Foundations Solutions Fourm
November 8, 2012- Hyatt Regency Greenwich
For some years Endowments and Foundations have been wrestling with how to organize their institutions, reduce staff fatigue and participate in investment opportunities not always available to them.
This free Solutions Forum is designed to address critical areas of interests plus a host of other issues allowing your institution to participate in these complex global markets.

Click here for detail: Flier brochure E&F Solutions Only _Autosaved_
For more information on the forum please contact: Rosa McCoy (rmccoy@imi-ct.com) or Marc Bereday (mbereday@imi-ct.com) and by phone at 203-622-5851.

Wealthy Family Office Forum

laura — Tue, 01 May 2012 14:49:34 +0000

Wealthy Family Office Forum – June 13, 2012
Hyatt Regency Greenwich
1800 E. Putnam Avenue, Old Greenwich, CT 06870

To all High-Net-Worth Investors and Wealthy Family Offices, the Investment Management Institute is pleased to announce our Wealthy Families Forum, to be held June 13, 2012, at the Hyatt Regency hotel in Greenwich CT. The one day Wealthy Family Forum is complimentary. It is our way of giving back to the community who has been so supportive of our programs. For those who might manage family foundations, this program will cover areas of enormous value in determining the optimal financial solutions for your family needs including insurance, legal guidance and investment strategies.
For more imformation on Forum and Roundtables please contact Marc VBereday, Program Director at 203-622-5851 Ext. 16 or by email mbereday@imi-ct.com