Frequently Asked Questions ("FAQ")

Stelac Advisory Services


WHY WAS STELAC ADVISORY SERVICES FOUNDED?

Stelac was founded to provide unbiased investment advice to ultra-high net worth families. We provide traditional multi-family office ancillary services including asset consolidation/reporting, trust and governance advice, concierge services, etc.


WHAT IS OUR PHILOSOPHY FOR SERVING TOP CLIENTS?

Our philosophy is to manage capital in a consistent and fully transparent manner to empower families to control, preserve and grow their wealth.


WHAT'S THE MINIMUM SET OF SERVICES THAT CAN BE HIRED / PROGRESSIVE PACKS THAT WE WOULD RECOMMEND?

The minimum set of services is exclusive asset allocation advice and portfolio management or consolidation and reporting services only.

In accordance with investor goals and risk profile, Stelac offers a variety of portfolios including the Loss Aversion, Moderate or Fully Invested strategy plus custom made solutions to achieve three principal goals:

  • Deliver strong absolute returns

  • Capture positive market environments while limiting downside risk

  • Achieve superior returns relative tot benchmarks and peers


HOW DO WE WORK WHEN THERE IS A FAMILY OFFICE IN PLACE?

In these cases we serve as the financial back office and data aggregator for the family office. Our full range of services including asset allocation, portfolio management, research, and consolidation can be made available. Stelac has been able to integrate smoothly with local family offices.


WHAT MAKES OUR DUE DILIGENCE PROCESS EFFECTIVE AND DISTINCTIVE?

Due diligence on investment vehicles is conducted by our Research team. All funds/managers/vehicles are evaluated based on size, strategy, management team, AUM, historical returns, volatility, fee structure, liquidity, volume, etc. Stelac has a natural preference for passive, cost efficient vehicles that track major global indices.  However, active management is considered in cases where a manager has consistently outperformed the stated benchmark and meets all aforementioned quality controls. For example, given the current interest rate environment, we believe active management should play a key role in fixed income investments.


VI. DO WE HAVE THE CAPABILITY TO CUSTOMIZE REPORTING ACCORDING TO CLIENT NEEDS?

Yes. Stelac reporting is 100% programmed and developed in house. Reporting can be customized to clients’ needs.


WHAT IS OUR ADMINISTRATIVE SERVICES?

Stelac’s Operations/back office team ensures proper execution of all client transactions and trades in accordance with negotiated fee agreements with financial institutions. SEC-compliant trade blotters are maintained with all execution and fee-related transaction details. All internal accounting and payroll related matters are managed by Stelac’s CFO.


WHAT IS OUR INVESTMENT PHILOSOPHY?

Stelac uses an investment approach referred to as Cyclical Asset Allocation. Research studies have demonstrated that asset allocation explains upward of 90% of portfolio returns.  Furthermore, studies have also confirmed that asset class returns are partially predictable, implying that asset allocation should change as market conditions evolve. Based on this assumption, Stelac runs two cyclical asset allocation models described in question 38- The Loss Aversion and the Fully Invested models


WHAT ARE OUR CURRENT RESEARCH CAPABILITIES, AND HOW MUCH OF THIS IS INSTITUTIONALIZED VS ADHOC?

Stelac’s Investments and Strategy team frequently analyzes vehicles from all asset classes: e.g. equity, fixed income, infrastructure, real estate, hedge funds, private equity, and cash. Stelac has developed internal data systems to


ARE YOU REGULATED BY THE SEC?

Yes we are.