Move Proves Successful Investment Results
Jenkintown, Pennsylvania (April 30, 2018) – Pitcairn, the leading family office specializing in helping ultra-high net worth families navigate the challenges and opportunities created by the interplay of family and financial dynamics, is excited to celebrate the 10th anniversary of its open architecture investment platform. The decision to move to open architecture has resulted in stronger investment performance for the firm’s clients.
“When we made the decision to change our investment approach to 100% open architecture ten years ago, we took a bold step that was not without risks,” said CEO & President Leslie Voth. “But, we felt strongly that the move would ultimately allow us to provide a better investment experience and objective advice to our clients while providing more transparency and flexibility within their investment portfolios. I’m proud to say that the transition has exceeded our expectations.”
Since the transition in 2008, Pitcairn’s Growth Strategy has realized a 6.5 percent annualized return, while its US Equity Strategy has achieved a 10.5 percent annualized return. The Growth Strategy has outperformed its benchmark by 1.2 percent*, while the US Equity Strategy has outperformed its benchmark by one percent**.
“Our investment performance over the last ten years is exceptional by any measure,” said Chief Investment Officer Rick Pitcairn. “By any measure you want to look at, we’ve delivered better results for our clients compared to others in the industry. Very few firms with our legacy and track record were willing to consider or had the ability to switch to open architecture at the time that we did. Even today, while many firms claim to offer an open architecture platform, they still maintain a suite of in-house products that they leverage. By design, our approach ensures clients have access to the best investment managers available and Pitcairn is aligned with client interests”
Open architecture platforms allow clients to access external investment products and vehicles beyond the proprietary products of their investment manager. Pitcairn has the distinction of being 100 percent open architecture, which means it sells no proprietary products. This gives clients and their advisors the choice to select the best investment products for their needs with no appearances of conflicts of interest.
“As we said ten years ago, moving to open architecture was the right move at the right time,” said Chairman Dirk Jungé, who was CEO at the time the platform was introduced. “Ultimately, we have been proven correct as we have been able to deliver exceptional performance and service to our clients.”
Pitcairn is a true family office and leader in helping families navigate the challenges and opportunities created by the interplay of family and financial dynamics. This unique approach to helping families maintain their total wealth momentum is grounded in Pitcairn’s century-long experience. Since its inception, Pitcairn has partnered with some of the world’s wealthiest families to meet their needs and drive better outcomes – year to year, decade to decade, generation to generation. Today, Pitcairn is recognized as an innovator, guiding families through generational transitions and redefining the industry standard for family offices. The firm is located in Philadelphia, with offices in New York and Washington, DC and a network of resources around the world.
*Blended benchmark is comprised of 36% Russell 3000, 19% MSCI ACW ex-US, 15% Bloomberg Barclays Municipal, 15% HFRI FoF Index, and 15% Real Assets
** Benched to the Russell 3000 index