Case Study: Strategic Asset Allocation – Best Practice

Starting Point
A professional investment manager was seeking a resilient strategic asset allocation (SAA) framework to serve as the foundation for managing a complex multi-generational family portfolio. The goal: create long-term structure and consistency, even during volatile market periods.

Our Approach
Together, we developed a robust SAA – the core driver of long-term investment outcomes. While some studies¹ claim that strategic allocation accounts for up to 90% of portfolio performance, our more pragmatic view estimates its impact at over 40%².

Our model is built on the classic pillars of fixed income, equities, and real assets – complemented by thematic and illiquid allocations. To calibrate the portfolio, we reference peer allocations from leading family offices and SAA studies from U.S. endowments (Commonfund Institute).

The Outcome
The family portfolio now follows a disciplined, strategically guided allocation. Reactive, ad hoc decisions have been replaced with a structured investment architecture that supports long-term financial goals with clarity and control.

¹ Brinson, Hood & Beebower (1986), further developed by Ibbotson (2010).
² Internal estimate based on experience with HNW and institutional mandates.

Case Study  – Breakaway Advisor: Seeking a Lifestyle Practice and Leverage

Goals:

  • Sole practitioner seeking a much improved work/life balance

  • Break away from his current C-Level and go fee-only

  • Gain the ability to live more flexible

  • Employ a very limited number of staff, leverage the network

  • Design and implement a plan to move prospects under one single investment philosophy (one message, one way of doing business)

  • Support in developing a business plan

  • Support in preventing unnecessary legal and setup costs.

The Advisor was exiting an institution decided to set up his own EAM. He was used to plenty of support within an institution and came to Pyrrha to learn more about the complexities and hacks of setting up a new EAM.

The Outcome:

The advisor was able to get clear about the main components in an ideal vision for his business.