DIVERSIFIED EQUITY
Investor Profile
Investors should have a long time horizon and the ability to withstand volatility in the strategy. A significant portion of the money invested in the strategy should not be relied upon for near term expenses.
Strategy Objective
The equity strategy is positioned to achieve performance over time commensurate or superior to that of the a benchmark based on 70% to the Russell 3000 and 30% to the MSCI All Country World Index ex US. The primary objective is a return that beats the index and a secondary objective is to minimize volatility of the strategy.
Strategy Characteristics
The equity strategy will include equity managers focused on various subsets of the equity investment universe. The strategy includes domestic and international managers, large cap and small cap managers, growth and value managers, and so forth. Our intent is to pick a lineup of fund managers that can outperform their respective benchmarks. In addition to manager selection, we make tactical overweight and underweight decisions for various asset classes as we see fit. There is no set number of managers for the strategy but we intend to invest in at least 5 managers to provide diversification benefits.
Strategy Process
Managers are chosen based on a multitude of factors. Management experience and past performance are certainly relevant but we also look for funds with coherent and well thought out stock picking strategies. We not only monitor funds within the strategy but also funds that we hold in high regard that are not in the strategy; and those are available to replace a manager if we believe that needs to occur.
Tactical positioning between fund managers is based on perception of which asset classes are likely to outperform in the near future. The expected risk and return of various asset classes is derived from significant internal research of financial and economic data. We also study third party forecasts and incorporate those assessments into our overall viewpoint.
Tactical positioning between fund managers is based on perception of which asset classes are likely to outperform in the near future. The expected risk and return of various asset classes is derived from significant internal research of financial and economic data. We also study third party forecasts and incorporate those assessments into our overall viewpoint.
*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.