Asset allocation—the distribution of assets over a broad class of investment types—is responsible for more than 90% of the variability of portfolio performance over time, making it the single most important investment decision. As a result, we will begin by developing a unique asset allocation for you based on your risk tolerance, income and liquidity needs, time horizon and return expectations. Taking into account factors such as the historical return and volatility of various asset classes, we will structure an "efficient portfolio" for you: one designed to achieve the highest expected return at a given risk level, or one that achieves a given level of return for the lowest level of risk.
In implementing your asset allocation, we build on an open architecture investment platform that includes fixed income and large- and mid-cap equities, real estate investment trusts (REITs), small-cap equities, and international equities. This approach allows us to complement our own fixed income, real estate and large- and mid-cap equity strengths with expertise from some of the most respected specialized equity managers in the industry.
