- Asset allocation is the key decision. It is a process, not just a description. It is dynamic and needs to be managed over time.
- Reducing portfolio volatility improves investment performance and diversification within asset classes reduces risk. The difficulty in recouping large investment losses requires prudent investors to protect themselves against downside risk.
- Costs matter – the expenses involved in running a portfolio need to be fully disclosed and kept as low as practical.
- As fiduciaries, how we do our work and deliver our services is as important as what we do.
Our goal is to create low volatility portfolios by prudently managing the portfolio’s asset allocation based on long-term asset class behavior as well as cyclical and secular economic and market changes. For the most part, portfolios are implemented utilizing low-cost, passively managed investments.