Strategic Asset Allocation

Diversification across asset classes is essential to controlling risk. Our asset allocation process relies generally on Modern Portfolio Theory (MPT) as pioneered by Nobel Laureate Harry Markowitz. MPT allows us to determine, based on historical returns, which combination of assets is likely to provide the best return for the least amount of volatility in the total portfolio. We use the Fi360 tools developed by Fiduciary Analytics to implement MPT-based strategies. The Fi360 method addresses the limitations of other MPT tools in a way that results in more realistic use of investment information and more effective asset allocations.