Pepper International reviews all existing asset allocation plans and money management relationships. If needed, the firm will select new investment managers in all investment categories. Pepper International negotiates price reductions from service providers wherever possible. The firm then monitors all portfolios and provides consolidated reporting.
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Advisory Services Pepper International acts in an advisory capacity to families on their investments. This means that Carol will make detailed recommendations, but families ultimately make the final investment decision and give all trading instructions to money managers. Carol believes that families should remain involved in all investment decisions and feels this is the most appropriate way to manage money. |
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Market Analysis Pepper International uses a wide variety of sources to constantly monitor the markets. The firm has relationships with top market making firms and receives a constant flow of economic and trading research. Carol helps families to make sound investment decisions that respond to but do not just react to volatile market conditions. With over 25 years of experience in the financial markets, Carol is considered a global financial expert and her opinion is sought on CNBC, Fox Business, Bloomberg television, Forbes and the Wall Street Journal, among others. |
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Market Crisis Management Periodically, the market goes from orderly to turbulent. Some event in the world triggers a financial panic, whether it is an unwelcome economic report, a pronouncement from the Federal Reserve, a war or a natural disaster. Due to Carol’s long experience in the financial markets, she is able to steer families through these times of market turmoil. This helps families avoid selling at the wrong times or waiting too long to exit certain investments. |
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Risk Management Risk management is a key function for the management of wealth. Defining risk for a family means understanding their time horizon, asset concentration, country risk, interest rate risk, cash flow needs and other personalized dimensions of risk. Does a family own operating businesses and need to have a portfolio that has a very different risk profile than their current business? Are funds needed to purchase a home and therefore not risked in the markets? What type of currency exposure does a family have, given where they live and where their businesses are? As External Chief Investment Officer, Carol guides families though a thorough discussion of what risk means to them in the financial markets and helps them develop a comprehensive risk management strategy. |
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Investment Process Carol has found that the best way to reach investment goals is to create a written investment process that describes how all investment decisions will be made. It describes how the family will go about creating and then adjusting the asset allocation of portfolios, how funds will be selected, what the monitoring process is and how investments will be judged. Carol has found that developing and sticking to a disciplined investment process helps families act logically in all financial markets and helps build wealth. |
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Investment Policy Statement Once a tailored investment process has been fully documented, Carol writes an investment policy statement for the family. A version of this document can then be given to each portfolio manager to ensure that the family’s wishes are being addressed in the management of the funds. |
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Asset Allocation Pepper International begins by creating an asset allocation strategy that is the target mix of cash, bonds, equities and alternative investments for each family member and each entity (such as a trust or a partnership). This asset allocation plan reflects the risk tolerance, return expectation and time horizon of the investor. |
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Investment Manager Selection Once the asset allocation is agreed upon, the firm advises the family on the selection of the appropriate money managers to execute the investment strategy. Pepper International has a long-standing, diverse network of sources for excellent investment opportunities in all investment categories. The firm works with the top major global brokerage and financial services firms and has close relationships with top global private banks. The firm also has a network of relationships with top alternative investment managers and other family offices. This network provides high quality deal flow in the areas of private equity, hedge funds, real estate and venture capital. |
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Co-Investment and Joint Venture Opportunities Many families today would like to find worthwhile co-investment and joint venture opportunities. Pepper International has access to a large deal flow from around the globe and is able to help families identify and participate in profitable direct investments. |
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Investment Manager Due Diligence Pepper International has developed a proprietary process for screening potential deals and investments. The firm has a proprietary Due Diligence Questionnaire which is presented to managers. A thorough interviewing process and vetting of managers is performed when the family becomes seriously interested in making an investment. Pepper International favors top managers with long track records of good performance in all market conditions. |
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Ongoing Investment Monitoring Once an investment has been made, the investment is reviewed on a monthly basis. Carol reviews all monthly investment statements provided by money managers. She speaks to portfolio managers and discusses performance on a regular basis. Carol closely monitors all of the underlying investments made through private banks and brokerage firms, and alerts clients to any changes that might require reconsidering the investment, whether it is a change in the management team, poor performance or changing economic or market conditions. |