Investment Planning
Portfolio Construction Process STRATEGY AND CLARITY. BUILT FOR YOU. Our technology is a quantitative investment tool that analyzes a broad universe of mutual funds and ETFs. It seeks to determine optimal portfolio allocation and is designed to generate positive returns over multiple market cycles. Our disciplined process for portfolio construction is explained below. |
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The Technology Difference
Our technology utilizes sound mathematics and empowers each piece of the portfolio to identify and move towards productive asset classes or align volatility. Traditional methods often penalize investors with predetermined allocations and prohibit investors from seeking safety in times of market stress. |
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Traditional Strategic Asset Allocation Approach: Portfolio is rebalanced by taking from winners and giving to losers. |
Portfolios begin with target weightings and are often rebalanced annually to the original targets regardless of market conditions. |
Tactical Asset Allocation Process: Each piece of the portfolio competes with other asset classes or cash to find optimal productivity based on the most current market environment. |
Unproductive sectors are replaced with those showing the most strength. |
Target Volatility Allocation Process: Portfolios are periodically rebalanced to maintain a suitable risk tolerance as market conditions change. |
Asset class weightings are consistently adjusted to reflect current market volatility. |