The Investment Policy Statement should clearly delineate a client’s strategic objectives and risk tolerance. Next, our team builds a dynamic model of existing and future obligations of fund assets. After defining a client’s liabilities, DWI consultants examine assets. Our investment committee meets annually to
establish proprietary capital market assumptions for each asset class. Using historical data and input from leading financial sources, we establish a stable set of long-term capital market assumptions to guide our modeling process. Finally our consulting team applies these proprietary capital market
assumptions to a client’s pre-existing investments to identify the minimum risk portfolio that will satisfy the fund’s return objectives using the most applicable techniques—from Markowitz style mean/variance optimization and surplus optimization to downside risk analysis. Throughout the process, DWI consultants focus on quantifying not just the expected case but also the downside risk in terms that are meaningful to the client’s investment committee.

Proper asset allocation lets the fund sponsor:
• Maximize investment performance within acceptable levels of   risk
• Evaluate projected funding requirements against various asset   mixes
• Quantify risk and return potential of various asset classes
• Optimally diversify assets among different investment styles
• Plan future contribution requirements