Asset-Class Investing

Our Philosophy

Asset-class investing takes a long-term view and systematic approach to capturing expected returns.

Our philosophy involves allocating your portfolio among a mix of asset classes, based on objective academic principles that recognize the different risk and reward interactions of those various asset classes.

Investment risk is defined as fluctuation in price. For individuals, price fluctuations pose two types of risk:

  • Objective risk — How much loss of value can you withstand in the short to medium term and still meet your long-term objectives?
  • Subjective risk — How much loss of value can you sustain without serious harm to your emotional well-being and your ability to sleep at night?

Consistent, long-term strategy

A different approach to investing

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:

  • your needs and goals
  • your time horizon
  • your risk tolerance.

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.

What we believe

Markets work

The 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 predict which stocks will always 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.

Risk and return are related

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 key

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.

Portfolio structure explains performance

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.

We don't pick stocks for your portfolio

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.