For investors seeking diversified exposure to the capital markets, we provide risk-based asset allocation models built using fund managers in various assets classes and styles with exposure to virtually every asset class necessary to build a high quality investment portfolio. We focus on managers and allocations that result in portfolios with lower volatility. This allows our investors the ability to own an institutional quality diversified portfolio that can include allocations to domestic equities, international assets, alternative assets, and a wide variety of fixed income exposures.
We create portfolios using allocation models to provide the appropriate risk/return profile for different investors. These models can be tailored for each client within each asset class. The allocation models are reviewed quarterly and modified based on market conditions and relative performance. We generally try to stratify client risk profiles as aggressive, moderate, conservative or absolute return and allocate assets accordingly.
For investors who seek to achieve a combination of strategies, we provide a Core & Satellite solution. Core & Satellite is an investment strategy that uses the traditional equity and fixed income based “balanced” account with a division of the equity allocation into a “Core” and “Satellite” allocation.
The “Core” consists of a conservative allocation to fund managers in fixed income and alternative styles. Because the holdings are “core” and the assumption that this structure is essential to meet the objectives of the portfolio these holdings are rarely traded and allows the portfolio to be more tax efficient.
The “Satellite” consists of individual stock positions that are selected to achieve returns in excess of risk to increase the returns of the portfolio. The portion of the equity allocation that is used for the Satellite is determined based on the objectives of the portfolio and are generally 20 - 40% of the portfolio.
The Core & Satellite approach is ideal for conservative portfolios that are attempting to use a balanced strategy that includes non-correlated assets and are attempting to maximize return on risk.