PORTFOLIO STRUCTURE: AN INTEGRAL PART OF THE INVESTMENT PROCESS

The number and variety of investment choices, or Asset Classes, keeps growing all the time – U.S. Equity, International Equity, U.S. and Foreign Fixed Income, Emerging Markets, REITs – the list goes on and on. Each market and each segment within each market can be associated with different characteristics, return potential and risks. We believe that a division of assets is only the beginning of the Asset Allocation story. Success requires diversifying the portfolio structure within itself, too. For example, the U.S. Equity market has four distinct sub-asset classes: Large Cap Value, Large Cap Growth, Small Cap Value and Small Cap Growth. For the best chance at success, your portfolio should be diversified across, as well as within, these Asset Classes. In other words, you shouldn’t just own “stocks” but also make sure you have the right mix of Large and Small Cap, Growth, Value and even alternative investments. And this discipline should be exercised across all the Asset Classes involved.