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  • your peace of mind
    is our priority
  • unbiased advice
    to provide financial clarity
  • service is at the heart
    of what we do
  • key principles
    for pursuing a better investing experience
  • a collaborative approach
    to help you create the life you want

our investment philosophy

Modern Portfolio Theory

Modern Portfolio Theory is an investment methodology that begins with the premise that it’s less risky to invest in several low-correlation asset classes than to place all of one’s wealth in one asset class. It builds on the basic principle that diversification increases the likely return while decreasing overall risk.

pursuing a better investment experience

10 key principles to improve your odds of investing success.

The market is an effective information-processing machine. Each day, the world equity markets process billions of dollars in trades between buyers and sellers—and the real-time information they bring helps set prices.

$407.8 billion world equity trading in 2017 (daily average)

The market’s pricing power works against mutual fund managers who try to outperform through stock picking or market timing. As evidence, only 14% of US equity mutual funds and 13% of fixed income funds have survived and outperformed their benchmarks over the past 15 years.

US-Based Mutual Fund Performance, 2003-2017

Some investors select mutual funds based on their past returns. Yet, past performance offers little insight into a fund’s future returns. For example, most funds in the top quartile (25%) of previous three-year returns did not maintain a topquartile ranking in the following three years.

Percentage of Top-Ranked Funds That Stayed on Top

The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.

Growth of a Dollar, 1926-2016 (compounded monthly)

Academic research has identified these equity and fixed income dimensions, which point to differences in expected returns. Investors can pursue higher expected returns by structuring their portfolio around these dimensions.

Dimensions of Expected Returns

Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.

Home and Global Market Index Portfolios

You never know which market segments will outperform from year to year. By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur.

Annual Returns by Market Index

Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions.

Avoid Reactive Investing

Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future, while others tempt you to chase the latest investment fad. When headlines unsettle you, consider the source and maintain a long-term perspective.

Financial and Investing Headlines

A financial advisor can offer expertise and guidance to help you focus on actions that add value. This can lead to a better investment experience.

  • Create an investment plan to fit your needs and risk tolerance.
  • Structure a portfolio along the dimensions of expected returns.
  • Diversify globally.
  • Manage expenses, turnover, and taxes.
  • Stay disciplined through market dips and swings.

learn more about the funds we use

Dimensional Fund Advisors

Dimensional Fund Advisors is one of the world’s leading investment firms, managing assets and institutional asset class mutual funds exclusively for institutional investors and the clients of selected registered financial advisors.