[vc_row neko_section_type=”neko-table-container”][vc_column][vc_empty_space height=”104px”][neko_heading_2 title=”Why Orinda” titlesize=”nk-heading-medium” titletag=”h1″][/vc_column][/vc_row][vc_row neko_section_type=”neko-table-container”][vc_column][vc_empty_space height=”40px”][/vc_column][/vc_row][vc_row css=”.vc_custom_1555837419655{padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column width=”1/2″ offset=”vc_col-md-4″][vc_single_image image=”6405″ img_size=”full” alignment=”right”][/vc_column][vc_column offset=”vc_col-md-8″ css=”.vc_custom_1555837546468{padding-left: 0px !important;}”][vc_row_inner][vc_column_inner][neko_heading_2 title=”The Challenge: The Asset Management Industry Has Changed” titlesize=”nk-heading-small” alignment=”text-left”][vc_column_text]
Globalization of investment markets combined with technology advances have contributed to higher correlation of investment returns by various asset classes.
Large conglomerate mutual fund complexes have emerged reducing manager and fund diversification, with the 50 largest fund companies now controlling 85% of the assets according to Morningstar.
Investment structure and style preferences have changed, as passive, low-cost index funds and ETFs dominate investment portfolios to deliver low cost beta. The disappointing relative performance and higher fee levels by many active management funds over the last 10 years has accelerated this shift in investor preference.
The investor portfolio construction process has become more generic. The media’s attention on the returns of certain benchmarks to retail investors has put pressure on the portfolio allocator to be beholden to these benchmarks in the portfolio construction process. The business/career risk to the allocator of straying from the typical asset allocation mix has contributed to this generic portfolio construction process.
[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row neko_section_type=”neko-table-container”][vc_column][vc_empty_space height=”40px”][/vc_column][/vc_row][vc_row css=”.vc_custom_1555837419655{padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column width=”1/2″ offset=”vc_col-md-4″][vc_single_image image=”6404″ img_size=”full” alignment=”right”][/vc_column][vc_column offset=”vc_col-md-8″ css=”.vc_custom_1555837546468{padding-left: 0px !important;}”][vc_row_inner][vc_column_inner][neko_heading_2 title=”Observation: An Opportunity to Add Value” titlesize=”nk-heading-small” alignment=”text-left”][vc_column_text]
The changes occurring in the asset management industry today have provided an opportunity for a capacity constrained, niche manager to add value by accessing strategies or investment areas that are not being followed by larger investment firms.
[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row neko_section_type=”neko-table-container”][vc_column][vc_empty_space height=”40px”][/vc_column][/vc_row][vc_row css=”.vc_custom_1555837419655{padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column width=”1/2″ offset=”vc_col-md-4″][vc_single_image image=”6403″ img_size=”full” alignment=”right”][/vc_column][vc_column offset=”vc_col-md-8″ css=”.vc_custom_1555837546468{padding-left: 0px !important;}”][vc_row_inner][vc_column_inner][neko_heading_2 title=”Why Orinda” titlesize=”nk-heading-small” alignment=”text-left”][vc_column_text]At Orinda, we strive to provide access to capacity-constrained niche managers and strategies that help diversify sources of risk and return in an investor’s portfolios. Our firm’s size and commitment to this area allows us to access these strategies for our advisor clients.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row neko_section_type=”neko-table-container”][vc_column][vc_empty_space height=”104px”][/vc_column][/vc_row]
