Our Strategic Asset Allocation approach uses six investment models with different levels of risk or volatility. Unlike our Tactical approach, the Strategic models maintain asset class exposure despite market or economic conditions. This approach appeals to clients preferring to maintain full exposure. We will maintain full exposure to selective asset classes regardless of our outlook.

As the name implies, a strategic balanced portfolio includes multiple asset classes and is designed to achieve a long-term asset allocation objective. The weights of the various asset classes are pre-determined, and the portfolio is periodically rebalanced to ensure that over time the asset class weights reflect the pre-determined or “strategic” mix. In other words, there is no attempt on our part to purposely deviate from the strategic weights in order to add value. If the latter approach appeals to you, please reference our Tactical Asset Allocation approach.

The emphasis of the Strategic approach is to preserve the fixed asset allocation weights because they ultimately relate to a larger performance objective. For example, in a defined benefit pension plan, the weights should reflect a level of risk appropriate to meet plan liabilities. For a foundation or endowment fund, the asset allocation will address spending needs. In a 401k plan, the asset mix is designed to address an investor's time horizon and risk tolerance.

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