Flexible investment refers to the ability to customize and adapt investment strategies and portfolios based on changing market conditions and investor needs. Some key examples of companies that offer flexible investment options are separately managed accounts (SMAs), private equity firms like JAB Holding, and global professional services networks. These platforms provide open account structures, access to multiple asset managers, and tailored portfolios to meet specific investment goals or restrictions. With over $3 trillion in assets, SMAs are growing in popularity due to their flexibility compared to mutual funds. Private equity firms like JAB Holding take an ‘all-weather’ platform approach, shifting capital across consumer sectors to generate resilient compound returns across cycles. The big four accounting firms also offer flexible investment advisory spanning M&A, transactions, risk management, and more. Utilizing these diversified platforms can enhance flexibility to navigate uncertainty and capture new opportunities.
Separately managed accounts enable customized portfolios
Separately managed accounts (SMAs) allow investors to directly own assets that are professionally managed according to personalized objectives. Unlike mutual funds which pool money from many investors into a fund structure, SMAs give each investor their own individual account to select securities, managers, and customize restrictions. Major brokerages offer SMA wrap fee programs providing core portfolio management from multi-managers supplemented by client customization abilities. With open account structures and flexible security options, SMAs cater to bespoke investor needs for concentrated stock positions, ethical exclusions, tax preferences, income levels, risk tolerances, and more. The fast growing SMA industry now represents over $3 trillion in total managed assets as demand increases for control and flexibility beyond one-size-fits-all funds.
Private equity firms take adaptable platform approaches
Leading private equity groups like JAB Holding implement ‘all-weather’ platform investment philosophies to flexibly allocate capital across different consumer areas and macro environments. Over the past decade, JAB has shifted its focus from legacy household products to new platforms in higher growth markets like coffee, restaurants, pet-care, and indulgence. Within these platforms, the firm has acquired companies across 15 sub-sectors from coffee conglomerate JDE Peet’s to Panera Bread fast-casual dining. Such diversified portfolios aim to generate resilient returns across market cycles, leaning on strong cash flow consumer brands in downturns while capturing growth opportunities in expansions. Additionally, JAB has adapted its strategies based on lessons learned from past deals like the troubled Coty investment. This flexible approach enables disciplined capital allocation towards the best risk-adjusted platforms.
Professional service networks provide adaptable advisory
The big four accounting & advisory networks of Deloitte, EY, KPMG and PwC furnish clients with customized investment solutions spanning corporate finance, transactions, risk management, deals advisory, and more. These global professional services leverage cross-disciplinary expertise adapt investment plans from due diligence to integration. For instance, PwC helps private equity clients enhance diligence by forecasting inflation impacts on target company earnings and cash flows – a growing imperative in today’s environment. EY assists corporates in divesting non-core assets to raise capital for strategic acquisitions aligned with shifting priorities. While Deloitte and KPMG tailor M&A workflow automation and AI analytics to flexible business objectives. Beyond bespoke advisory, these networks also run their own private capital arms providing varied fund structures to meet different risk-return goals.
Flexible investment example companies like SMA providers, diversified private equity platforms, and professional service networks allow customization across objectives, asset classes, macro environments, and special needs. These adaptable approaches contrast with rigid mutual fund allocations and foster greater control across portfolios.