Asset-Class Investing

Smart decisions based on risk and reward

Asset allocation and diversification are the most important factors in managing risk and building successful investment portfolios.

Asset allocation – selecting the most appropriate mix of equities, bonds, cash, and alternative investments – is the most important factor in managing risk and building investment portfolios. Proper diversification among asset classes protects portfolios from the worst effects of market downturns while capturing returns in rising markets.

Rather than building portfolios with individually selected securities, we allocate your capital to diversified funds of domestic and international equities, bonds, and alternative assets whose weightings meet your investment objectives.

Three critical factors

In determining the optimal asset allocation for your portfolio, three factors are critical:

  • Your needs and goals
  • Your time horizon
  • Your risk tolerance

With these in mind, we build globally diversified portfolios, allocating your assets to pursue optimal returns while attempting to cushion the effects of volatility.

An investment resource we use extensively, Dimensional Fund Advisors, is a leader in applying compelling academic research to practical investing. Download DFA’s presentation, “Pursuing a Better Investment Experience” to learn more. (PDF)