Asset allocation and proper diversification are basic, tried-and-true fundamentals. But we don’t stop at the basics; our strategy integrates these principles across multiple levels. For example, we apply methodical research to assorted variables when selecting asset classes. Our Investment Committee also performs semi-annual deep dives to evaluate opportunities (for instance, analyzing asset classes that are relatively cheap or expensive) and buy or sell accordingly.
We also believe diversification is key to lowering portfolio risk. Naturally we diversify the securities within an asset class with an eye toward lowering “unsystematic” risk and volatility. Going further, we diversify between actively managed and passive investments. In addition, we diversify by using fund managers and money managers who have particular expertise in different asset classes. This commitment to diversification across multiple levels supports an important investing objective: participating in up markets while limiting exposure in down markets.