Our asset allocation strategies are equally driven by the OPPORTUNITIES we find and the INDIVIDUAL NEEDS of clients.
Opportunities can come from asset allocation and our views of the risks and returns of various asset classes, regions, sectors, and styles—on a prospective basis rather than by looking back at past returns and data. Key to our analysis of risk and return include reasonable growth expectations, macro “inflection points” (including material changes in fiscal and monetary policies), and numerous fundamentals, including price and diversification. We are averse to betting clients’ wealth on bold economic and market forecasts or numerous assumptions. We understand it’s far better to be humble and attempt being approximately right rather than perfectly right with market calls. “Timing the market” and using crystal balls almost always lead to underwhelming performance over time and even investment disaster.
Client considerations are also important in formulating asset allocation strategies. Customizing asset allocation strategies is often overlooked and generally left unchanged over time. Like market cycles and prices, client circumstances change, and so we believe asset allocation requires constant review and change. We seek allocations that have a reasonable chance of meeting client needs while minimizing unnecessary risks.