Discretionary Services

Discretion Defined:

For Institutional and Private Wealth investors, when outsourcing to a discretionary manager, the investor delegates most or a portion of their governance responsibilities to a third party, potentially including asset allocation, selection of investment managers, implementation of asset movements, and on-going oversight for an investment program.

Clients Are Interested in More Effective and Efficient Solutions

Institutional and Private Wealth investors continue to look for more effective and efficient ways to manage their investment programs. The time spent building out traditional governance systems and diversified investment programs have resulted in disappointing performance for many institutional investment programs. Many systemic problems can be the cause for this underperformance, including volatile markets, politics, unexpected economic scenarios, ineffective trusteeship, poor selection of investment management strategies and managers, and poor or untimely consulting advice. Underperformance may also result from a lack of access to superior investment ideas, niche investment ideas, or simply from the inability to effectively capture these ideas with an investment program.

A Continuum of Service Arrangements

As an organization, we pride ourselves on delivering beyond our clients’ expectations. We were listening when a growing chorus of clients requested more effective and efficient portfolio management and administration services. We developed our Discretionary Services platform to help clients more effectively capture superior investment ideas, whether through faster implementation or better access to ideas provided by the scale of our business. We understand our clients trust us to deliver a product with great solutions, backed by great research, and delivered on a timely basis by top-notch service. Our product extends the continuum of how we can help clients build progressive, holistic, and well-performing investment programs while alleviating some of the fiduciary burden.

Discretionary Consulting Services

By designating NEPC as an independent discretionary fiduciary, you authorize us to provide seamless and unbiased oversight of your investment programs. This allows you to take full advantage of our proven expertise in proactive service, asset allocation, manager selection, and outsourced administration. Our flexible solution allows you to choose the amount of outsourcing desired, whether it encompasses everything including asset allocation or is focused more on alleviating your administrative burden. Our service is designed to allow you to focus more on the high priority issues within your organization while leaving the investment decisions and implementation to the experts at NEPC.

NEPC’s Discretionary Services platform marries our industry-leading in-house capabilities with our expertise at selecting best-in-class partners. Our Discretionary Committee, made up of some of the most senior invest­ment leaders in the industry, works with our award-winning research and consulting teams to develop progressive asset allocation and investment ideas. These ideas are implemented in client portfolios through the best products the money management industry has to offer within our open-architecture investment platform.

We are able to react quickly to changing markets. We look to make modest or major changes in client investment programs to effectively capture op­portunities or manage threats, whether through new investments in mispriced investment categories or rebalancing of client programs during times of significant market volatility. Ideas are implemented decisively and money movements are tightly controlled through a technology platform designed to ensure we safeguard our clients and transact appropriately.

Clients may also benefit from modestly reduced fees. By using scale to our advantage, NEPC is able to pass through fee savings from investment managers as well as asset custodians. These benefits are already being en­joyed by discretionary clients representing a variety of plan types, including defined benefit, defined contribution, endowments, foundations, operating assets, Private Wealth and health and welfare pools. Also, a client may be able to redirect their staff’s efforts to other important initiatives as NEPC reduces the amount of time necessary for staff to maintain the current investment program(s). 

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