For over 20 years, the team has applied empirical testing and practical experience to the management of assets on behalf of our institutional clients. The team, which consists of senior investment professionals, is large enough to provide depth of investment experience, but small enough to be flexible. The asset allocation decision can be a key determinant of a portfolio's long-term risk and return. Asset classes often behave differently from each other under various market conditions and the appropriate asset mix can often capture performance opportunities while lowering the overall risk of a portfolio. Occasional departures from fundamental value provide opportunities to enhance portfolio performance.
Quantitative discipline provides the best anchor for a sensible investment.
Diversification is an effective way to control risk. There is no substitute for seasoned judgment. The foundation of the team's investment process is its proprietary quantitative asset allocation model. Data on the stock and bond markets is input to the model each week, or more often if market conditions dictate, and the model generates a recommended allocation to stocks and bonds. The Investment Committee, comprised of the team's asset allocation managers, analyzes the model's output, discusses current market conditions, develops a market outlook and establishes the appropriate allocation to each asset class.