A. General Description of Advisory Firm
SECOR Investment Advisors, LP (“SIA”) was established in 2010 and has offices in New
York, New York. SECOR is a wholly-owned subsidiary of SECOR Asset Management, LP.
Duen Li (Tony) Kao holds a majority stake in SECOR Asset Management, LP and is deemed
to be the principal owner. Refer to Item 10 for a further description of SECOR Asset
Management, LP and SECOR’s industry affiliations.
SECOR Investment Advisors (UK), LLP (“SIA UK” and, together with SIA, “SECOR”),
which is indirectly owned by SAM, is a limited liability partnership formed in the United
Kingdom that is authorized and regulated by the United Kingdom Financial Conduct Authority
(FCA) and registered with the SEC as a relying adviser under umbrella registration with SIA.
SIA UK provides non-discretionary investment management services similar to those provided
by SIA. SAM owns SECOR Partners (UK), Ltd., the controlling parent entity of SIA (UK).
SECOR Partners, LLC is the governing entity of SAM. Its sole managing member is Tony
Kao.
B. Description of Advisory Services
SECOR offers discretionary and non-discretionary investment advisory services to U.S. and
non-U.S. institutional clients, including employee pension and benefit plans, endowments and
foundations, and pooled investment vehicles. With the exception of two clients and two “fund
of funds”, SECOR generally does not have discretionary authority over its clients’ portfolios.
As of December 31, 2022, SECOR has $12.6 billion in non-discretionary regulatory assets
under management and $254.2 million in discretionary regulatory assets under management.
SECOR provides non-discretionary investment advisory services to two pooled investment
vehicles offered only to certain affiliated non-U.S. pension plans that are existing clients of
SECOR. Both non-discretionary pooled investment vehicles are “funds of funds”. SECOR
also provides discretionary investment advisory services to two pooled investment vehicles
that are “funds-of-one”. The discretionary pooled investment vehicles are also “funds of
funds”.
The SECOR team includes experienced practitioners from investment and actuarial consulting
firms, global investment banks, and buy-side asset managers. By bringing together individuals
with decades of “hands on” experience, we are able to offer clients access to sophisticated
investment strategies and cutting-edge capabilities – all in one nimble, client-centric boutique.
We provide a menu of non-discretionary investment advisory services provided to our clients
on an a la carte or bundled basis.
Establishing Strategic Investment Policy - We believe the establishment of an
appropriate strategic policy portfolio is the key determinant in an institutional plan’s
success. With this recognition, SECOR believes a highly customizable approach in
conducting asset
allocation studies is essential to developing sound long-term
investment policies:
Asset allocation
Active risk budgeting and asset allocation
Dynamic policy management
Asset class portfolio and mandate structuring
Investment Manager Research and Selection – Investment manager selection is another
key component to the implementation of the strategic policy portfolio. SECOR’s team
possesses many years of portfolio management and investment manager research
experience. The combination of these experiences sets SECOR apart from its
competitors. SECOR’s investment manager selection due diligence process includes
rigorous evaluation of both quantitative and qualitative attributes.
Investment Risk Monitoring - Risk management is at the heart of SECOR’s investment
philosophy. SECOR believes risk management is a continuous process. SECOR uses
its proprietary tools to evaluate current market scenarios or stress-test under any
historical scenario to sensitivity to macroeconomic factors and capital market
valuations impacts on client portfolios.
Policy risk
Active risk vs. policy
Asset mix vs. targets
Investment guidelines compliance
Manager benchmarking, operational assessment
On-going Plan Management - At SECOR, we work closely with clients to determine
our optimal method and cycle of communication employing a suite of customized
reporting to monitor portfolio exposures.
Tactical Asset Allocation Advice
Transition management
Quarterly Performance and exposure reporting
Investment risk reporting
Customized client education programs
Investment Administration
Custodian bank (& securities lending) oversight
Investment manager fee validation
Performance measurement
Securities lending
Proxy voting
Overall compliance monitoring
Implementation / Portfolio Solutions - At SECOR, academic research and theory are
married with decades of practical experience to assist clients in developing asset
allocation strategies that maximize asset efficiency. We strive to develop strategies that
are innovative, cost-effective, and practical.
Equity Hedging - Tail Risk Hedging, Custom Option Strategies
Custom Plan Management – Asset Mix Management, Currency Hedging, Asset
Allocation Tilts
Collateral management
C. Availability of Customized Solutions for Clients
SECOR’s advisory services emphasize the customization of solutions for each client.
D. Wrap Fee Programs
As of the date of this Brochure, SECOR is not advising clients to participate in any wrap fee
programs and is not itself serving as a manager in any wrap fee program.
E. Assets Under Management
As of December 31, 2022, SECOR has $12,555,233,438 in non-discretionary regulatory assets
under management and $254,196,719 in discretionary regulatory assets under management.