Focused Exclusively on Captives

For more than 25 years, Performa has been providing customized investment solutions to captive insurance companies with various ownership structures (single parent/pure captives, segregated cells, group captives) and collateral needs (114 Trusts and LOCs) across a wide range of industries (retail, auto dealer, manufacturing, trucking, construction, health care/hospital systems) in various stages of the captive life cycle (formation, development, maturity). While our captive clients have unique cash flow needs, business objectives and operate in different industries, they all benefit from Performa’s extensive knowledge of the captive industry and emphasis on capital preservation, income generation and access to liquidity.

Investment Solutions Designed for Captives

As part of our extensive experience working with captive insurance companies, we take pride in collaborating with our clients to fully understand their specific business, industry and reporting requirements. Performa’s approach to asset allocation and portfolio construction involves the continual evaluation of capital markets and portfolio positioning to reach the goal of prudent, long-term buildup of surplus with an emphasis on capital preservation. Our portfolio construction process is a thorough and thoughtful one that begins with in-depth conversations with each captive client. At the outset of every relationship, we work with our clients to determine the most appropriate portfolio design based on client-specific variables, including an evaluation of their internally developed investment policy statement and benchmarks against which they measure performance results. Below is a list of investment services that we offer:

  • IPS Development & Recommendations
  • Asset Allocation Modeling
  • Comprehensive Reporting & Oversight
  • Rebalancing (Strategic & Tactical)
  • Fee Analysis (Asset Class and Manager)
  • Management of Cash Flow Activity
  • Performance Monitoring (Overall Portfolio & Strategy Level)
  • Benchmark Evaluation & Recommendations
  • Discretionary Portfolio Management
  • Investment Committee Education
  • Compliance Monitoring
  • Market Insights

Investment Management Approach

At Performa, our investment management approach is grounded in our philosophy of capital preservation and value orientation. We seek to understand our clients’ unique investment objectives, risk profile, and liquidity needs to identify the best strategic investment allocations for each client. Our investment process combines top-down, macro analysis with fundamental, bottom-up research and security selection skills.

For clients seeking diversification and liquidity, we offer our internally managed mutual funds. We also manage separate account portfolios of individual holdings when our clients require a customized investment solution.

For many of our clients, the core fixed income allocation represents the anchor within a diversified portfolio. As such, capital preservation is our primary goal when managing investment grade bond portfolios. Success to us is generating absolute, positive returns and outperforming benchmarks over intermediate to long-term market cycles. To this end, our investment team focuses on fixed income investment risks such as interest rate changes, credit quality deterioration, and the liquidity environment with the objective of eliminating the possibility of impairments within portfolios. Our investment process for fixed income strategies starts with a top-down perspective on interest rate and fixed income sector exposure. We then employ our own fundamental, security specific research to select individual portfolio positions.

Whether a client invests their regulatory capital in core fixed income or uses the allocation to fund liabilities, maintaining the right ongoing liquidity structure at both the market and client levels is essential to achieving their objectives. Even the best-executed investment ideas can turn from gains to losses when unexpected liquidity needs arise, especially during times of market volatility. In the construction process, we assess portfolio liquidity under stressed scenarios and aim to provide each client the peace of mind that their fixed income allocations will cover them for any unexpected cash needs, regardless of how difficult the market environment may be.

For clients that have generated unencumbered surplus and are seeking additional income, we combine our expertise in investment grade bonds with more specialized strategies such as high yield bonds, global equities and small cap equities. These strategies are typically sub-advised or externally managed by firms that share our investment philosophy and understand the objectives of our captive insurance clients.

No matter the individual strategy, we take great pride in our ability to be nimble, contrarian, and decisive so that our clients can benefit from the ever changing investment landscape.