Get Our Free
Newsletter

If you're concerned about the risk of your investments or looking for ways to increase the long term growth of your wealth, our FREE investment publications are for you.

Our perspective is different than what you'll find on other blogs and newsletters. We thrive on bringing the latest academic investment and risk management insights to our readers in a form that they can use to manage their wealth more efficiently.

How will your email be used? We respect the privacy of our readers. We will not share your email address with any third party. You can unsubscribe at any time if our articles are not for you.

First Name:
Last Name:
Email Address:

Overview

Asset Allocation Strategy Descriptions

At Portfolio Research we build and deliver our investment tools differently.

We do not take custody of your money nor do we provide investment advice; we supply you with asset allocation percentages, updated monthly, to assist you in managing your money. There are tools on our site to help you track our investment strategies cost effectively.

From a portfolio science perspective, a core benefit of our model portfolios is how they adjust to changing market conditions, with the objective of keeping risk constant. Our asset allocation strategies are based on a fundamental concept called portfolio efficiency, developed by Nobel Laureate Harry Markowitz. Efficient portfolios have the property that more risk (measured by volatility–the standard deviation of the return distribution) must be taken to achieve a higher expected return (a forward looking average). The collection of efficient portfolios traces a curve known as the efficient frontier. We use the efficient frontier to define our investment strategies. Our strategies, through time target a specific risk (volatility). We offer strategies that target 2.5%, 5%, 7.5%, 10%, 12.5% and 15% volatility. Because our strategies are efficient they offer the highest expected return for the risk they take. This is depicted in the chart below.

Model performance can be found by clicking on the specific strategy in the left hand menu.

It is important to consider your risk tolerance when making an investment decision. In poor market conditions higher risk strategies tend to have greater losses. Poor market conditions can last for an unknown amount of time.

Depending on market conditions, and how accurate our models of risk and correlation are, strategies can and will differ from their target volatility.