PORTFOLIO SCIENCE

Do you wonder whether the investments in your portfolio are chosen using anything other than someone’s whim on a given day? We don’t manage portfolios based on whims, or hopes, or sometimes right but more often wrong market forecasts. Rather, we manage our clients’ portfolios according to a set of rigorously tested scientific principles. Can you describe the principles used to manage your portfolio? Here are ours:

• 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.

No investment strategy can eliminate risk or volatility in a portfolio. However, we believe a comprehensive approach for managing your investments that considers the following factors can reduce long-term risk.

• Liquidity Needs & Sources
• Withdrawal Rates & Timing
• Income Tax Position
• Investment Costs (including mutual fund management fees, trading costs, and brokerage fees)

Talk to us about how we manage portfolios and see if it makes more sense than what you are doing now.