Brinker Capital Inc., A Registered Investment Advisor
For financial advisor use only.For financial professional use only.
Core Asset Manager: A Tailored Investment Strategy
CHRIS HART, Core Investment Manager
For financial advisors use only.
Agenda
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● Core Investment Philosophy and Process
● Manager Due Diligence
● Manager Selection
● Communications
For financial advisors use only.
Core Asset Manager:A Comprehensive Investment Platform
● LPs
● 40 ETFs
● 35 mutual funds
● 75 SMA strategies
● Approximately $3.0 Billion
in assets under management
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Holdings are subject to change
A Team of Investment Strategists to help with portfolio design and rebalances
For financial advisors use only.
Investment Philosophy
● Create diversified custom
portfolios that meet client’s
individual risk tolerance and
unique needs
● Emphasize active management
but also incorporate passive
exposures
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Add value through:
● Manager Selection and Due
Diligence
● Mix of quantitative and qualitative
factors
● Select appropriate managers for
allocation
● Understand its role in the portfolio
● Asset Allocation and Portfolio
Construction
● Broad diversification
● Strategic asset allocation
combined with shorter term
investment considerations
● Utilize core-satellite approach to
portfolio construction
For financial advisors use only.
Investor Benefits● Customized portfolios to meet
individual goals and objectives
● Transparency of holdings
● Better tax control
● Ownership of underlying stocks
● Tax loss harvesting
● Individualized cost basis
Benefits of Core Asset Manager
● Ability to incorporate SRI or ESG
screens
● Use of satellite strategies
● Asset Class Strategies (ACS) for
efficient diversification
● Real Assets, Alternatives, Fixed
Income, International
For financial advisors use only.
Platform Management & Manager Selection
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Evaluate Needs
• Platform needs
• Sub-style assessment
• Potential asset class risks
• Upgrades and enhancements
Qualitative & Quantitative Screens
• Investment team tenure
• Assets under management
• Risk-adjusted performance
• Peer comparisons
Onsite Due Diligence
• PM and investment team
• Investment philosophy and process
• Attribution and long term performance
• Stability of team and organization
Select, Monitor, Review
• Consistency of implementation
• Continuous assessment
• Correlation to existing strategies
• PM access and transparency
For financial advisors use only.
Preferred Active Manager Characteristics
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Preference for boutique investment firms with institutional presence
Seek concentrated, high conviction, and high active share portfolios
Lower turnover business owner approach to investing
Consistency of investment process
Strong risk-adjusted performance across multiple time periods
Open to selecting newer strategies or smaller investment managers as appropriate
For financial advisors use only.
Due Diligence Process
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Core Due Diligence
Questionnaire Visit Notes ScorecardSummary
MemoSearch Memo Discussion
For financial advisors use only.
Manager A - Small Cap Value
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Key Points
● Boutique institutional investment firm based in San Mateo, CA
● $3.1 billion in AUM and advised by academic thought leaders in behavioral
finance
● Unique investment process based on behavioral finance principles
● Contrarian process that uses non-quantitative strategies to exploit over-reaction
● Fundamental analysis to confirm behavioral thesis
● Strong long-term track record since inception in 1993
● Differentiated pattern of alpha relative to many bottom up fundamental
peers
For financial advisors use only.
Manager B - Large Cap Growth
Key Points
● Sole focus on large cap growth investing since inception in 1992
● Based in St. Louis with approximately $10 billion in AUM
● Concentrated, high conviction portfolio of 20 stocks
● Patient approach to growth investing
● Low turnover, business owner mindset
● Strict valuation control
● Stability of key investment personnel and investment discipline
● Long term track record of strong risk-adjusted returns
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For financial advisors use only.
Manager C - Ladder Plus
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Key Points
• Boutique fixed income manager specializing in municipals
• Unique business structure that provides a competitive advantage on
municipal bond pricing
• Focus on superior execution allows them to take less credit and duration
risk
• Opportunistic approach to municipal fixed income investing
• Strong risk adjusted returns since inception in 2006
For financial advisors use only.
Ongoing Manager Monitoring and Review
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• Review absolute and relative performance
Daily
• Onsite due diligence meetings with PM and investment team
• Review detailed manager due diligence questionnaire and ADV
• Universe review relative to benchmark and peers
• Complete manager scorecard
Annually
• Written updates on individual managers
• Identify asset class trends impacting managers
• Conference call with PM
• Analyze relative and absolute performance versus peers
Quarterly
• Review absolute and relative performance
• Manager attribution and commentary
• Identify performance outliers
Monthly
For financial advisors use only.
Manager Strategy Updates● Published quarterly to spotlight individual managers
● Three sections:
● Key investment process and takeaways
● Quarterly attribution commentary
● Short & long term performance opinion
● One page document digging deeper into an individual manager
Core Insights
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Asset Class Review● Published quarterly for Large Cap and Small/SMID cap asset classes
● Qualitative and quantitative content on individual strategies and benchmark trends
● Portfolio level detail, performance, and key portfolio risk statistics
● Benchmark factor analysis (market cap, P/E, Yield, Beta, EPS Growth)
● Portfolio positioning for managers relative to benchmark
● Longer document digging deeper into asset class trends and comparing managers
Core Quarterly Webinar● Discuss market observations and trends across asset classes
● Review active manager performance and notable outliers
● Provide update on Core platform developments
● New manager searches
● Q&A
For financial advisors use only.
Core Asset Manager
● Ideas
● Opportunistically enhance manager roster across asset classes
● Identify unique and complimentary investment strategies
● Remain open to emerging managers and strategies
● Discipline
● Manager due diligence & selection process
● Six asset class methodology
● Well diversified & strategic asset allocation
● Better Outcomes
● Tailored solutions to achieve individual investment goals
● Dedicated Brinker Capital investment professionals providing support for
portfolio construction, reviews and rebalances
● Partnership that results in enhanced client experience
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