The Cornerstone of the Falcons Rock Investment Counsel, LLC philosophy is to achieve each client's investment goals while minimizing investment risk. To realize this goal, our philosophy consists of the following five tenets:

• Customized-we believe each portfolio must be customized to the investor's individual needs and long-term objectives. Falcons Rock does not have one investment policy or set of model portfolios that is pre-determined to fit all clients. A "plain language" initial interview will be conducted to determine clear, specific investment goals before any work is performed for each client.
  
  
• Objective-we believe that sound investment advice cannot be tainted by the need to "sell" a product. Falcons Rock is a fee-only investment consulting firm. We are paid by our clients for the services we provide, not by a brokerage firm, insurance company, bank, or money manager for products sold or recommended. We are a trusted, knowledgeable source of advice without conflicts of interest.
  
  
• Balanced-we believe that a portfolio's overall asset allocation is as important for determining total return and risk as the selection of individual securities or portfolio managers. It is important to consider a variety of asset classes, and alternative investments, when developing appropriate investment strategies. Falcons Rock has no bias toward passive or active management, and believes that these styles compliment each other well in many portfolios. Strategic asset allocation strategies, as well as unique tactical asset allocation strategies, may be incorporated in specific client accounts.
  
  
• Informed-we believe that smart investment decisions are based on extensive analytical research combined with "Informed Human Judgment." Falcons Rock has secured a range of institutional quantitative and qualitative resources, which allows for the prudent selection of money managers and comprehensive performance measurement versus customized benchmarks. Capital markets projections are employed to analyze expected behavior between and among various asset classes. Clients pay us to monitor the markets and recommend smart changes to their portfolios.
  
  
• Personal-we believe that our clients must trust us to help them achieve their long-term goals. That trust can only be earned through ongoing personal delivery of investment planning, investment analysis, and investment results, which are clearly communicated to each client.

The focus of our firm is to build long-term relationships with a select group of clients, who are looking for prudent advice, and place a high value on integrity.

Investment Consulting Services

Falcons Rock Investment Counsel will provide any of the following investment consulting services on the basis of an hourly rate or flat fee for the specific project. An estimate of the total fee will be provided in writing prior to the assignment, and one-half of the total estimated fees are due in advance. Our full range of ongoing advisory services for Individual/Family Investors and Institutional Investors is outlined elsewhere on our website.

• Fiduciary Investment Compliance Review
• Analysis of Current Investment Portfolio
• Design of Optimal Portfolio
• Development of Investment Policy Statement
• Investment Manager Search
• Target 401(k) Plan Design

Falcons Rock Investment Counsel, LLC
Examples of Consulting Work Performed for our Clients

• A five-year back study analysis of investment returns for a high net worth client who was concerned about the performance and objectivity he was receiving from his current investment advisor. This study concluded that the composite portfolio returns were below established benchmarks and peer groups of like portfolio managers, and that the recommendation of investment products was conflicted.
• A hedge fund analysis for a high net worth client who was concerned about the hedge fund manager recently leaving an established but troubled investment firm and starting his own firm. This analysis determined that this hedge fund manager had performed very well versus its benchmarks and peer groups and the decision was made to retain this manager and his new firm. We will monitor the performance of this hedge fund on a quarterly basis going forward.
• A comprehensive search for a new investment management firm for a high net worth family who was considering both open- and closed-architecture platforms. This search process included: the determination of client objectives based on a proprietary evaluation matrix, the preparation of a formal Request for Proposal, a review of proposals from six investment management firms, a detailed written analysis of each firm, interviews with three finalist firms at their headquarters, and the negotiation of management and advisory fees. One firm was selected, and we were retained to monitor the results of this manager on an ongoing basis.
• The negotiation of a life settlement offer for a high net worth client who no longer had a need for one of the large life insurance policies that had been purchased for estate planning purposes. This project included a search for institutional investors interested in purchasing the policy and the negotiation of offers and contract terms. The final negotiated settlement was more than 130% greater than the original offer.
• A search for a new 401(k) service provider for a mid-size employer in Germantown, WI, who was concerned about its bundled provider, the broker who sold them the plan, and the quality of their employee education and communication. The search revealed a wide range of services and fees available from 401(k) vendors, and an incredible discrepancy in how fees were disclosed. A new service provider was selected for this plan, we coordinated the implementation process, and we will monitor the performance of the plan’s new mutual funds on a quarterly basis.
• An analysis of the existing investment managers and mutual funds used in a qualified retirement plan. This analysis focused on the performance of the overall portfolio, as well as the performance of the specific investment managers and funds, versus customized benchmarks and peer groups. A structural review of the existing asset allocation strategy was examined versus stated return objectives. As a result of this analysis, the investment strategy was modified, some investment managers were retained, and some managers/funds were replaced.
• The development of a creative and unique new qualified retirement plan design that incorporates the best features of 401(k) plans with important elements of traditional pension plans. This plan design is results-based and will provide a high percentage of employees the financial security they need to maintain their standard of living in their retirement years.The plan sponsor will incur no additional cost, as compared to current 401(k) designs, yet will be able to offer a more comprehensive and competitive benefit to employees
• An asset allocation analysis for an existing charitable foundation, which had recently received a significant donation from the estate of a long-time supporter. This single donation more than doubled the asset base of the foundation, and the Board determined that a formal review of the portfolio would be prudent. A revised investment strategy was implemented, with a focus on maintaining the foundation’s long-term ability to make meaningful distributions on an inflation-adjusted basis. In addition, a detailed Investment Policy Statement was drafted, which included the adoption of a Foundation Mission Statement.
• A comprehensive back-study analysis, asset allocation study, and development of a coordinated Investment Policy Statement for the general and emergency reserve assets of an institutional client with an international board of directors. Special consideration was given to currency hedging and to the foreign securities of countries represented by the members of the board. We were retained to conduct investment manager searches, implement the new strategy, monitor the performance of the portfolios, and to provide ongoing investment counsel.