We have been approached by a variety of non-profit organizations, all of which have similar investment structures. They have a consultant who selects asset managers, monitors their activities and performance and periodically reports to the institution’s board. The consultant is paid a fee. There are several investment managers; each paid a fee.
There is a custodian; paid a fee. And there are auditors and other functionaries; each paid fees. Intercontinental can collapse this multi-layered and expensive structure. Intercontinental Consultants LLC will act as the investment advisor. It will craft the investment policy, engage the outside equity managers, monitor performance and provide the other necessary requirements to professionally manage the endowment. Further, it will manage the fixed income portion of the portfolio.
Intercontinental Asset Management Group, Ltd., the broker dealer, can act as the custodian through its clearing firm, Pershing LLC, a wholly owned subsidiary of The Bank of New York Mellon Corporation. All accounts held at Pershing, LLC are insured, without limit, by the SIPC and outside insurance companies.
The result to the non-profit organization is a much simpler, cost efficient way to manage its investments.