Asset Class Investing
Asset allocation is the most important factor in managing risk and building investment portfolios. We make informed decisions driven by understanding risk and reward.More about asset-class investing ›
Our philosophy involves allocating your portfolio among a mix of asset classes, based on objective academic principles that recognize the different risk and reward characteristics and interactions of those various asset classes.
Investment risk is defined as fluctuation in price. For individuals, price fluctuations pose two types of risk:
Through discipline and objectivity, we help you keep your focus on your long-term goals.
Successful investing experiences rely on setting and maintaining optimal asset allocation and diversification.
First, we work with you to understand your individual financial situation. Three critical factors drive the way we allocate assets in your portfolio:
With your goals in mind, we rely on objective criteria to determine the right asset allocation for you.
Through disciplined portfolio management, we maintain asset-class consistency over time and keep costs low. This consistent, long-term investment strategy allows the markets to work for you.
The public securities market is a complex mechanism that factors the knowledge and expectations of all investors into securities prices.
Many investors try to outsmart the market. But no individual has yet proved able to consistently predict which stocks will perform best over time.
In fact, according to behavioral economics theory, people tend to make emotional rather than rational investing decisions. This often leads to missed opportunities.
Investing involves taking risks. Not investing involves taking risks, too. Differences in average risk create differences in the average returns of portfolios.
Taking on increased levels of risk offers the potential to earn greater returns. Yet diversification plays a role, as well. Diversification reduces the impact of any one company’s performance on your wealth.
Diversification is an essential tool for investors that reduces the impact of any one security’s performance on your portfolio.
A well-diversified portfolio improves the odds of holding the best performers and provides the opportunity for a more stable outcome.
Your globally diversified portfolio positions you to capture returns wherever they occur.
Asset allocation, not stock picking or market timing, accounts for most of the performance in a diversified investment strategy. We apply discipline to maintain your optimal asset allocation.
A successful structure is one that you can hold with confidence as the market rises and falls.
Managing risk is part of our philosophy. We don’t pick stocks for your portfolio. Instead, we focus on funds that provide diversification and emphasize areas of the market with higher expected return potential based upon decades of academic research and rigorous testing.
Proper diversification among asset classes protects portfolios from the worst effects of market downturns while capturing returns in rising markets.
Dimensional Fund Advisors, an investment resource we use extensively, utilizes asset-class investing strategies to apply compelling research to practical investing.