An Example of Asset Management Our Clients Appreciate
Active Asset Allocation
Examples of Some Other
Investment Management Styles We Have Seen
Guiding Investment Strategies, Principles, and Practices
Research and Data Tracking
Asset Allocation Adjustment and Re-balancing
Determinations of asset class weightings are set based on prevailing levels of risk
as opposed to arbitrary, static allocations.
Asset allocation changes are made personally, as needed, not just based on a calendar
quarter or other automatic criteria.
Positions are given a range of acceptable price variation from the date they are
purchased. All effort is made to prevent significant losses from any and all positions
in the account.
Decisions regarding the prevailing levels of specific risk, sector risk, and market
risk are made on an ongoing basis to determine if client risk tolerance is in alignment
with the present portfolio composition.
Our method causes rotation away from investment categories with potential for high-risk/low-return
in favor of those asset groups with potential for low-risk/high return.
Researching and monitoring the markets is typically outsourced to third parties outside
of the financial adviser’s control.
Allocations are typically re-balanced on a calendar quarter or other arbitrary interval,
often done using computer algorithms.
Risk management is typically assigned to passive diversification methods. Using the
passive concept of Modern Portfolio Theory, coupled with the age of the investor,
allocations are established using historical relationships to define the expected
risk level in a portfolio.
Market risk is typically considered mitigated by diversification alone. This implies
constant exposure to the predetermined market subsets of the allocation.
Typically a computer model determines the various asset class weightings which remain
constant until the next re-balance date.
Re-balancing systematically based on arbitrary time intervals such as calendar quarter
or semi-annually causes the purchase of under-performing asset groups and the sale
of better performing asset groups.
Speak with us today about our Active Allocation Strategy
As your investment manager, we watch the market every day. We observe market data
on 40 U.S. industries, 40 foreign countries or regions, world currencies, fixed income
markets and commodities.