How Optimizer Works
Using the Optimizer is easier than you might think. But to help you understand the functionality, here is a step-by-step process of how to use this unique application:
Determining the Index to Replicate
A C2IG professional will assist in determining which index should be chosen and replicated for each client, considering the client’s overall investment objectives and risk tolerance.
Putting the Optimizer to Work
Once selected, the index (or indexes) is entered into the Optimizer application. The Optimizer then makes specific recommendations as to CUSIP numbers and amounts for the securities to be purchased. The investments will be highly-liquid and marketable Treasury or Agency securities that are at least $2 billion issues or greater.
Developing a Broker / Dealer Network
After the securities have been identified for purchase, the trades need to be executed. To ensure that all transactions are executed in a cost-effective manner, we highly recommend our clients seek at least three broker/dealers to compete for the trades. (Note: The broker/dealers to be used for executing all security transactions are selected by the client only).
Monthly Optimizer Re-balancing
The Optimizer will make specific buy/sell recommendations every month for re-balancing the portfolio to reflect changes in the index. A C2IG professional will schedule a 30-minute teleconference with your investment officer to review the Optimizer re-balancing recommendations. On average, three transactions totaling approximately 7% of the portfolio is re-balanced per month. As with the subsequent months, a C2IG professional will assist you every step of the way.
