Asset allocation is a critical step within an effective investment process. It is the road map for every portfolio structure and it applies similarly to the most sophisticated institutional portfolio as it does to an Individual Retirement Account. Every portfolio asset allocation is designed to meet the portfolio’s objective and tolerance for risk. Every asset allocation that we build is constructed based on our expected return assumptions for each security and asset class based on the inherent valuation of the security and the market.

Integral to every portfolio asset allocation is our process for allocating risk. Our risk management process measures the expected risk for each security, sector and allocates the portfolio along calculated risk weights. Through an iterative process of comparing risk weights to the portfolio’s allocation of capital, we can better calibrate the portfolio structure to meet the desired investment objective relative to the targeted risk tolerance.