Accolade prides itself on providing unbiased investment advice. We can because with Accolade you pay no commissions or "mark-ups", our services are fee-based. Accolade will not retain ownership of any marketable securities and will not sell securities out of inventory.
Initial Analysis - Prior to commencing portfolio management, we conduct an analysis of your portfolio objectives and constraints. Our analysis includes:
- Review and if necessary re-write your investment policy
- Determine available funds for deployment via a liquidity analysis
- Determine appropriate duration benchmark by performing a liability
elasticity analysis
Portfolio Management Process
- Securities are selected based on your predefined duration/convexity
parameters and relative value considerations. - Following execution, Accolade provides you with all tickets, confirmations,
and documents used in investment analysis and recommendation.
Portfolio Risk Mitigation - All securities contain embedded risk characteristics which require individual measurement and monitoring, as well as proper compensation to the portfolio. Accolade takes steps to mitigate risk in various ways.
Interest Rate Risk - Accolade provides modeling of duration/average life profiles in changing interest rate scenarios using a robust interest rate risk system, both at purchase and on an ongoing basis.
Credit Risk - If credit risk is assumed Accolade conducts monthly surveillance of issuer and required collateral.
Optionality - Accolade uses an OAS Framework: valuation of embedded options on a stand-alone basis.
Liquidity Risk - Purchases of non-standard structures, issues with limited
distribution, or smaller deal sizes require additional surveillance which
Accolade provides.
