BALANCED
Investor Profile
An investor in the balanced strategy is seeking a diversified portfolio that invests in many different investable asset classes. This investor desires some income and some growth and is committed to broad diversification to achieve those goals.
Strategy Objective
The balanced strategy is positioned to achieve strong risk adjusted returns. The benchmark for the strategy is 40% Russell 3000 Index, 20% MSCI ACWI ex US index, 30% Bloomberg Barclays US Agg Total Return Unhedged, 10% Bloomberg Barclays US Corporate High Yield Total Return Index Unhedged. The balanced strategy targets a distribution between two and four percent.
Strategy Characteristics
Although known as a balanced strategy, this strategy will not consist of many traditional balanced funds. The funds selected will have flexible mandates to invest in a wide variety of sectors and/or securities. There is no set target for types and number of funds to be used but the expectation is the strategy will include multi asset income funds, strategic income/unconstrained bond funds, total return bond funds, global allocation funds, and several equity funds. The equity funds will have broader mandates than a particular style box such as large cap value or small cap growth. The strategy will likely be invested close to 50% equity and 50% fixed income but has the flexibility to overweight various asset classes as seen fit.
Strategy Process
A lot of thought is put into what blend of funds can cover a wide variety of the investable market in a strategy that provides good growth and income while minimizing volatility. This strategy is focused on risk adjusted returns. While a lot of thought is put into the mix of funds, screening for high quality funds that individually are excelling is just as important. We monitor the performance of funds within the strategy and those on a short list that we hold in high regard and are available to replace underperforming managers. Tactical asset allocation between managers is utilized.
*The investment(s) discussed may not be suitable for all investors. Investors should make investment decisions based on their own specific investment objectives and financial circumstances.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.
**Additional information is available upon request.
***Any investment contains risk, including the risk of total loss, fluctuating prices and uncertain returns.
