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Strategic Investment Management Review

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Strategic Investment Management Review

Strategic Investment Management, LLC

Strategic Investment Management, LLC is a large financial advisor firm in Arlington, Virginia that focuses on a variety of portfolio management services. Its client base consists primarily of institutional investors, though the firm also has a couple of high-net-worth individual clients. In total, it has over $38 billion in assets under management (AUM).

Strategic is a fee-only advisory firm. This means that its only compensation comes from client-paid fees. This differs from a fee-based firm, which may also receive commissions from third parties (for instance, via securities transactions and insurance sales).

Strategic Investment Management Background

Strategic was founded in 1987 by former investment employees of World Bank. The firm considers itself to be an outsourced chief investment officer (OCIO), helping its clients grow their assets on a personalized basis. Brian Murdock, who has more than 25 years of industry experience, currently serves as the firm's president and CEO. The firm's ownership includes both employees and Northill U.S. Holdings II, Inc., a division of holding company Northill Capital Group.

Among the 40 financial advisors employed at Strategic, there are a number of financial certifications, including several chartered financial analysts (CFAs) and one certified public accoutant (CPA).

What Types of Clients Does Strategic Investment Management Accept?

Strategic works primarily with institutional clients, including investment funds, pension and profit-sharing plans, charitable organizations, businesses, municipal government entities and sovereign wealth funds. Two high-net-worth individuals have accounts with the firm as well.

Strategic Investment Management Minimum Account Size

This firm usually does not accept accounts smaller than $100 million, but this minimum can be waived at the discretion of the firm.

Services Offered by Strategic Investment Management

Strategic Investment Management offers a number of investment advisory services to its clients. The firm generally provides discretionary services, which include the following:

  • Investment policy review
  • Asset allocation study
  • Asset class structuring
  • Manager sourcing
  • Oversight of investment decisions
  • Comprehensive risk management
  • Oversight and selection of alternative strategies
  • Implementing strategies
  • In-house asset management
  • Relationship management
  • Comprehensive investment reporting

Strategic Investment Management Investment Philosophy

Strategic's investment process usually follows five steps:

  • The firm's advisors work to set up a system of policy objectives that meet clients needs.
  • Advisors find the optimal asset allocation strategy for these needs, including security selection and diversification plans.
  • The firm works to structure asset classes in a way that can generate positive returns over both the short and long term.
  • The firm sources and selects managers to ensure they can carry out the firm's investment plans.
  • The firm and its advisors look to mitigate and manage risk so that clients can meet their goals while taking on a minimal amount of risk.

In addition to this five-step process, Strategic compiles data and research from several vendors that provide key financial insights into which securities are and aren't worth investing in.

Fees Under Strategic Investment Management

Strategic Investment Management charges annual fees based on a percentage of clients' AUM. The fee for global investment management services is 0.50% on the first $100 million. After this, fee rates become negotiable. For non-discretionary services, consulting services, general services, investment fund management and all other services, charges are negotiable and may vary from account to account.

Strategic also charges performance-based fees for certain accounts when negotiated with the client. Fees are calulated and charged on a quarterly basis even though they're shown in in annual percentages.

What to Watch Out For

According to Strategic's Form ADV, the firm's performance-based fee arrangement "could create an incentive to favor higher fee-paying accounts over other accounts in the allocation of investment opportunities." While this represents a potential conflict of interest, the firm is bound by fiduciary duty to act in your best interest at all times.

Disclosures

Strategic does not have any disclosures of past disciplinary issues on its record.

Opening an Account With Strategic Investment Management

If you're interested in opening an account with Strategic, you can go online to its website and submit a contact form. You can also call its team at (703) 243-4433 or visit the firm's office. 

Where Is Strategic Investment Management Located?

Strategic Investment Management is headquartered in Arlington, VA at 1001 19th Street on the 16th floor. This is its only location.

Tips for Financial Planning

  • While Strategic Investment Planning is focused on institutional investors, plenty of advisors offer investment management and financial planning to individual clients. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • If your primary financial goal is to create a secure retirement, a good first step is to see whether you're on track to meet your retirement income goals. Our retirement calculator can show you where you stand, and our Social Security calculator will estimate what kind of monthly benefit you can expect to supplement your savings.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research