Our approach is guided by the pursuit to deliver the performance of capital markets through structured portfolios utilizing compensated risk factors. Decades of research in academia has provided the foundation for our portfolio construction.
- Markets work: Capital markets do a good job of fairly pricing all available information and investor expectations about publicly traded securities.
- Diversification is key: Comprehensive, global asset allocation can neutralize the risks specific to individual securities.
- Risk and return are related: The compensation for taking on increased levels of risk is the potential to earn greater returns.
- Portfolio structure explains performance: The asset classes that comprise a portfolio and the risk levels of those asset classes are responsible for most of the variability of portfolio returns.
In addition to portfolio construction, we monitor the allocation to remain on target with the client’s goals and objectives as outlined in the Investment Policy Statement. Portfolios are rebalanced periodically when asset classes exceed the tolerance levels.
We access global markets using institutional mutual funds to provide a transparent, low-cost efficient solution.