Your browser is out of date. It has known security flaws and may not display all features of this and other websites

Services Offered

As a full service investment consulting firm, we offer a comprehensive suite of services to institutional investors.




Alternative Investments

We typically encourage clients to consider the full opportunity set of investments, including alternative asset classes. Rocaton offers broad market coverage of alternative asset classes, including hedge funds, private equity, real assets and real estate, as well as a range of investment strategies that do not fit neatly into these categories. Depending on client-specific situations, we consider allocations to both direct and fund-of–funds investment strategies.

The exact manner and extent that alternative asset classes are utilized is a function of numerous client-specific factors, including liquidity needs, specific investment objectives, governance structure and risk tolerance. We work closely with clients to establish objectives, provide education, structure portfolios, integrate alternatives into traditional portfolios, identify and analyze risk, select managers and monitor programs and managers.

Asset Allocation

Our asset allocation process is fully customized, and our centralized asset allocation research team is led by a founding partner of the firm. We typically begin with an in-depth review of the client’s objectives, risk tolerance, internal management resources, governance structure and other relevant considerations.

We then work with the client to:

  • Define overall portfolio objectives and the universe of appropriate asset classes
  • Develop risk, return, and correlation analyses
  • Project plan liabilities, considering client-specific preferences and constraints
  • Formulate robust, intuitive allocations that forecast the potential impact of various market environments

We tailor our analysis, inputs and recommendations to each client’s unique situation, emphasizing diversified portfolios that incorporate a wide range of asset classes and investment strategies.

Defined Contribution

More than half of Rocaton’s clients utilize our defined contribution consulting services. Our comprehensive suite of defined contribution investment consulting services includes:

  • Investment structure design
  • Evaluation and recommendation of investment managers and funds
  • Analysis of investment fees and expenses
  • Quarterly performance reporting
  • Ongoing investment program and manager/fund monitoring
  • Research on emerging trends impacting defined contribution plans
  • Input on investment-related participant communications
  • Ongoing dialogue with our consulting and research professionals

Discretionary (Outsourcing)

Rocaton began offering discretionary investment consulting services in 2012 as a natural extension of our traditional consulting expertise. Our discretionary service offering leverages Rocaton’s well-defined investment philosophy, manager research process, and experienced professionals to manage all or part of a client’s investment portfolio.

Under our open architecture model, senior professionals construct a portfolio that is customized to reflect each client’s unique needs and objectives. Our discretionary relationships include corporate defined benefit plans, defined contribution plans, endowments and foundations and a high net worth individual.

Depending on the specific engagement, our services may include:

  • Asset allocation and portfolio construction
  • Assisting plan sponsors with selecting investment options for defined contribution plans
  • Investment manager selection and implementation
  • Rebalancing and cash flow planning
  • Portfolio monitoring and reporting

Rocaton Solutions Group (RSG) is comprised of experienced individuals who oversee all discretionary investment activities. Our dedicated RSG Operational team is responsible for the implementation and execution of all discretionary decisions and ensuring adherence to stated policies. A senior client advocacy team manages each relationship on an ongoing basis to help ensure that evolving client needs and objectives are the primary focus. In all cases, we work with our discretionary clients to create a unique outsourced solution in the most efficient, cost-effective manner possible.

Financial Intermediary

Rocaton has partnered with financial intermediaries since the firm’s inception in 2002. We have extensive experience developing model asset allocation portfolios and constructing investment programs, as well as recommending mutual funds, separate accounts managers and sub-advisors for distribution to the retail, high net worth, and institutional channels.

The services we provide to our financial intermediary clients typically include:

  • Manager search and recommendations
  • Research reports on current managers
  • Analysis of multi-manager portfolio construction
  • Quarterly performance reporting and analysis
  • Ongoing discussions regarding industry trends and potential new product ideas
  • Ongoing dialogue regarding personnel and organizational changes with investment managers engaged by the financial intermediary

Manager Search

Rocaton’s dedicated manager research team typically conducts approximately 1,700 manager meetings annually across both traditional and alternative asset classes.

Our senior research professionals’ extensive experience and industry contacts are key drivers for investment manager sourcing and ideas and focusing on areas of opportunity.

Our manager research process for initial strategy assessments typically follows a five-step process:

  1. Investment Manager Sourcing
  2. Initial Evaluation
  3. Quantitative Analysis
  4. On-Site Due Diligence
  5. Research Review Committee

The Research Review Committee (comprised of all the senior research professionals) is charged with the final approval of any rating proposed by a member of the research group to capture Rocaton’s best thinking.

Ongoing manager monitoring is a significant part of our dedicated manager research team’s responsibilities as one of our goals is to make sure that our clients continue to be invested in the best possible managers to meet their investment goals.

Rocaton has developed a proprietary, web-based research platform to capture, organize and warehouse all information related to Rocaton’s research and evaluation of investment managers.

Performance Reporting

All of our deliverables, including quarterly performance reports, can be completely customized. We partner with our clients to create reports, deliver information and make specific recommendations in a manner that is most useful given their unique needs.

Many of our client reports include an executive summary or “Dashboard” report that incorporates relative returns versus objectives over different time periods, as well as comparisons to peers. This is a useful tool to prioritize the client due diligence process and identify inconsistencies in performance expectations.

Risk Analysis

Rocaton carefully examines sources of over and underperformance using proprietary and third party analytics. We often work with clients to develop a “risk budget” that defines their investment program’s tolerance for risk on a total portfolio basis. The risk budget allocates expected risk across asset classes and managers to seek maximum expected return for risk taken.

Examples of risks that we may consider in this process are: Inflation Risk, Interest Rate Risk, Credit Spread Risk, Equity Market Risk, Commodity Risk, Illiquidity Risk and Currency Risk.


20 Glover Avenue, Norwalk, CT 06850
+1 203.621.1700
info@rocaton.com
Linked In

 

   

 

Privacy Policy  |  Terms of Use

 

As of April 1, 2019, Rocaton was acquired by Goldman Sachs.

THESE MATERIALS ARE PROVIDED SOLELY ON THE BASIS THAT THEY WILL NOT CONSTITUTE INVESTMENT ADVICE AND WILL NOT FORM A PRIMARY BASIS FOR ANY PERSON’S OR PLAN’S INVESTMENT DECISIONS, AND GOLDMAN SACHS IS NOT A FIDUCIARY WITH RESPECT TO ANY PERSON OR PLAN BY REASON OF PROVIDING THE MATERIAL OR CONTENT HEREIN. PLAN FIDUCIARIES SHOULD CONSIDER THEIR OWN CIRCUMSTANCES IN ASSESSING ANY POTENTIAL INVESTMENT COURSE OF ACTION.
THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.

This material is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

All investing involves risks, including possible loss of the principal amount invested.
Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Rocaton to buy, sell, or hold any security. Views and opinions are current as of the date mentioned and may be subject to change, they should not be construed as investment advice.

This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. This material has been prepared by Rocaton and is not financial research nor a product of Goldman Sachs Global Investment Research (GIR). It was not prepared in compliance with applicable provisions of law designed to promote the independence of financial analysis and is not subject to a prohibition on trading following the distribution of financial research. The views and opinions expressed may differ from those of Goldman Sachs Global Investment Research or other departments or divisions of Goldman Sachs and its affiliates. Investors are urged to consult with their financial advisors before buying or selling any securities. This information may not be current and Rocaton has no obligation to provide any updates or changes.

Rocaton does not provide legal, tax or accounting advice to its clients. All investors are strongly urged to consult with their legal, tax, or accounting advisors regarding any potential transactions or investments. There is no assurance that the tax status or treatment of a proposed transaction or investment will continue in the future. Tax treatment or status may be changed by law or government action in the future or on a retroactive basis.

Hedge funds and other private investment funds (collectively, “Alternative Investments”) are subject to less regulation than other types of pooled investment vehicles such as mutual funds. Alternative Investments may impose significant fees, including incentive fees that are based upon a percentage of the realized and unrealized gains and an individual’s net returns may differ significantly from actual returns. Such fees may offset all or a significant portion of such Alternative Investment’s trading profits. Alternative Investments are not required to provide periodic pricing or valuation information. Investors may have limited rights with respect to their investments, including limited voting rights and participation in the management of such Alternative Investments.

Alternative Investments often engage in leverage and other investment practices that are extremely speculative and involve a high degree of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested. There may be conflicts of interest relating to the Alternative Investment and its service providers, including Goldman Sachs and its affiliates. Similarly, interests in an Alternative Investment are highly illiquid and generally are not transferable without the consent of the sponsor, and applicable securities and tax laws will limit transfers.
Equity securities are more volatile than bonds and subject to greater risks. Small and mid-sized company stocks involve greater risks than those customarily associated with larger companies.
Bonds are subject to interest rate, price and credit risks. Prices tend to be inversely affected by changes in interest rates. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds.
High yield fixed income securities are considered speculative, involve greater risk of default, and tend to be more volatile than investment grade fixed income securities. High yield, lower rated investments involve greater price volatility and present greater risks than higher rated fixed income securities
Investments in commodities may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or factors affecting a particular industry or commodity.
Mortgage-backed securities are also subject to prepayment risk (i.e., the risk that in a declining interest rate environment, issuers may pay principal more quickly than expected.
Emerging markets securities may be less liquid and more volatile and are subject to a number of additional risks, including but not limited to currency fluctuations and political instability.
Bank loans have speculative characteristics including the risk of non-payment of principal and interest. Other risks include insolvency, collateral impairment, illiquidity and the risk of bankruptcy. Floating rate securities are generally below investment grade (high-yield securities) and carry increased risks of price volatility, underlying issuer creditworthiness, liquidity and the possibility of default in the timely payment of interest and principal.
Private equity and real estate investments are speculative, highly illiquid, involve a high degree of risk, have high fees and expenses that could reduce returns, and subject to the possibility of partial or total loss of capital; they are, therefore, intended for experienced and sophisticated long-term investors who can accept such risks. Real estate risks include, but are not limited to, fluctuations in the real estate markets, the financial conditions of tenants, changes in building, environmental, zoning and other laws, changes in real property tax rates, changes in interest rates and the availability or terms of debt financing, changes in operating costs, risks due to dependence on cash flow, environmental liabilities, uninsured casualties, unavailability of or increased cost of certain types of insurance coverage, fluctuations in energy prices, and other factors.

Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. We have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public sources.
Economic and market forecasts presented herein reflect a series of assumptions and judgments as of the date mentioned and are subject to change without notice. These forecasts do not take into account the specific investment objectives, restrictions, tax and financial situation or other needs of any specific client. Actual data will vary and may not be reflected here. These forecasts are subject to high levels of uncertainty that may affect actual performance. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. These forecasts are estimated, based on assumptions, and are subject to significant revision and may change materially as economic and market conditions change. Rocaton has no obligation to provide updates or changes to these forecasts. Case studies and examples are for illustrative purposes only.
The information and services provided on this web site are intended for persons in the US only.