As the dominant determinant of portfolio risk and return, asset allocation is the single most important investment decision an investment committee will make and the board will approve. After identifying permissible asset classes and setting specific parameters, we work with the committee to design an "efficient portfolio" – selecting those investment vehicles that complement each other to maximize return and minimize risk.
Once the appropriate asset allocation is formulated, we work with the committee to assess the impact of asset return variability. We believe our clients should fully understand the volatility associated with the markets in which they are investing. Together, we will examine how asset allocation decisions affect the investment portfolio in real terms – that is in dollars and inflation-adjusted results.