The AAM Investment Process
1. Identify Objectives and Constraints
In the first step of the investment process, we get to know your organization’s unique needs, from your current financial profile to your risk tolerance and appetite.
2. Construct Customized Portfolio
Strategic and Tactical asset allocation come together to create a portfolio designed to align with your investment objectives and your broader organizational goals.
3. Monitor Risk
With the support of our experienced research team, as well as internal systems, each portfolio is constantly monitored to ensure prudent risk management.
4. Report and Review
Dialogue with management, board presentations, and reviews of key objectives create an opportunity to take a fresh look at each portfolio to ensure it still aligns with your overall organizational development. All powered by the flexible Clearwater Analytics engine.
Outsourcing specific functions has been a component of finance teams for years and some in asset management talk about “OCIO,” which literally stands for “Outsourced Chief Investment Officer.” Practically it is a reference to an insurance company’s financial management team supplementing their capabilities through an outsourcer. At AAM we call this Asset Allocation Review because, while AAM is recognized for our fixed income expertise, we also have built relationships with experienced managers for non-core assets.
Our partners include:
- Zazove Associates, LLC for convertible bonds;
- Securian Asset Management for private placements and commercial mortgage loans (CML); and,
- Muzinich & Company for public high yield, bank loans and private middle market debt.
At AAM we build and manage investment portfolios for insurance companies, allocating across asset classes to attempt to maximize income and expected return net of fees.
Increased scrutiny from regulators, rating agencies, and auditors is forcing insurers to quantify and account for firm-wide risks. AAM can help frame the various components of investment risk within the broader context of the organization’s Enterprise Risk Management (ERM) plan.
A cornerstone of AAM’s ERM approach is the development of a Dynamic Financial Analysis Model. This flexible capital allocation model helps clients to evaluate the importance of a successful investment strategy for enhancing firm value.
Investment accounting for insurance companies is complex, demanding a nuanced understanding of changing GAAP and FAS rules and a thorough knowledge of many types of reporting required by this industry. At AAM, we make it easy for you to manage these complex demands with streamlined accounting services and seasoned expertise. We have specialized in serving the insurance industry for nearly three decades, developing a detailed knowledge of accounting and reporting issues that non-specialist managers cannot match. AAM combines the expertise of in-house investment accounting experts with the efficiency and flexibility of the Clearwater Analytics engine.
AAM primarily works with insurance companies, creating robust expertise. A good investment partner should go beyond simply managing your portfolio, and AAM has the insurance industry experience to consult on critical issues that support your business strategy and help streamline your reporting and accounting. Managing insurance company assets requires not just investment management expertise, but also a suite of services that support your business strategy. As an insurance industry specialist, we provide market intelligence and expertise as well as a wide-range of specialty services as part of a comprehensive investment management program.