The following sneak peek into our “pension-style” investment process comes from our forthcoming new website…more to follow! Below we detail how we manage our CommonWealth Portfolios.
We do this work for our clients so they can invest with confidence.
Our Pension-Style Investment Process:
First, we use multiple statistical metrics and strict quantitative criteria to test mutual funds, to determine which have proven worthy of consideration for a place in our portfolios. Since we design portfolios in terms of lowering downside volatility, eligible fund managers are compared for their risk-adjusted track records in their respective categories. Sharpe ratios, upside capture, drawdown ratios, and recovery period are some of the factors we initially consider.
Second, we employ qualitative factors such as in-person meetings with fund managers to help us continuously evaluate manager activities. Financial software assists us to compare their results against peers within their categories and for their consistency of results. The high level of product knowledge we gain helps us determine how the inclusion of a fund manager’s characteristic style may best enhance our diversified portfolios.
Third, we design fully developed and complementary portfolio models which we continually monitor on your behalf. We consistently perform rigorous, in-depth due diligence to demonstrate how the funds selected for your portfolio could perform in combination and through real world market cycles according to our standards of quality, conservatism and consistency.
If you would like us to design a portfolio for you or to compare your portfolio to our Model Portfolios please contact us!
