DISCRETIONARY INVESTMENT MANAGEMENT
Granaway provides a dynamic discretionary investment management service utilizing exchange traded funds and individual bonds to craft personalized portfolios. We create liquid low-cost portfolios while avoiding the use of costly and inflexible mutual funds. Asset Allocation is a critical part in investment portfolio structure. In the initial stages of managing a portfolio the managers merge together their knowledge of the client's needs with the firm's view of the market. Within this process the portfolio manager is also balancing the client's risk appetite, constraints and any income requirement. Once the strategic plan for the portfolio has been created, the portfolio manager then overlays the firm's view of the market on the portfolio, to come up with a tactical allocation, which will be the primary driver of the over or under performance of the portfolio. Studies have shown that asset allocation drives 90% of the difference in returns between portfolios and our goal is to exploit this rather than fixate on stock picking.
We then break down the overall asset allocation to look within the various asset classes and structure the portfolio exposures to take advantage of where we see opportunities. Within the Equity Allocation we start with the MSCI World Equity Index which gives a capital weighted picture of the world equity markets. We then take our views on the various equity markets and start to skew our exposures towards those we view more favorably and away from those we are less enthusiastic about. Additionally within certain global regions we will also target specific sectors which we think will outperform. Within the bond allocation we look at a number of different aspects with varying degrees of emphasis - depending upon the client's needs. Tools which we use to try and enhance the return profile of the overall portfolio include; use of floating rate bonds to protect against rising rates, movement along the credit curve to take advantage of credit spread anomalies, moving towards or away from certain fixed income sectors to take advantage of safety or yield, such as sovereign, agency, supranational or high quality corporates and investing along the time continuum depending upon the income requirements or interest rate environment.
PENSION MANAGEMENT
Granaway has taken this expertise which they apply to individual portfolios to managing pension assets. Through an alliance with Freisenbruch-Meyer Group, Granaway is able to provide the same liquid, low cost, quality service to employees and pensioners in the management of their assets.
FUND OF HEDGE FUND ACCESS
Granaway is an introducer to the Aurum range of fund of hedge funds. Aurum is an award winning fund of hedge funds manager who is renowned for their alternative asset management skills. Through Granaway clients are able to avoid costly custody fees and loads of local institutions by directly dealing with the fund and it’s administrator. The Aurum range of funds is listed on the London and Bermuda stock exchanges. Minimum investment is $25,000 – please contact us for more information.
REPORTING
Granaway will furnish a comprehensive performance report on a quarterly basis to clients. This performance will be net of fees. Congruent with this the portfolio manager will also make themselves available to the client for a meeting or conference call to discuss the performance of the portfolio, current structure of the portfolio and forward looking thoughts. Externally the custodian of the assets will also provide a monthly statement and confirmations of trades.
AVAILABILITY
The portfolio managers owe a first fiduciary duty of responsibility to the clients and second duty to the firm. This means that management of the portfolio and making themselves available to the client are to be the portfolio managers primary concerns. Any other role an employee may have within the organization will be deemed as secondary to the above.
FEES
For the management of the portfolio Granaway will charge a flat fee of 85 basis points (0.85%). This fee will cover all expenses incurred by Granaway in the management of the portfolio and reporting on the portfolio. This fee does not cover any fees which are charged by custodians or other parties. The latter may include any commissions, settlement fees, wire charges, brokerage fees and any other fees charged by third parties.