For diversified portfolios asset allocation has a critical influence on both short and long-term performance and risks. Some studies have suggested that well over sixty percent of a typical portfolio’s performance is attributable to its asset allocation. Since asset allocation has such strong influence on both investment returns and risks, we continually monitor and manage for our clients each portfolio’s asset allocation. Specific long-range asset allocation targets are used to manage the portfolios. The portfolios are monitored and managed on the following levels:

I. Primary asset classes including cash equivalents, bonds, stocks, real estate and commodities.

II. Domestic and international investments

III. Market capitalization of large growth, large value, midsize growth, midsize value, small growth and small value companies.

IV. Sector allocations across Information, Service and Manufacturing Economies which include the following:

Information Economy including software, hardware, media and telecommunications.
Service Economy including healthcare, consumer services, business services and financial services
Manufacturing Economy including consumer goods, industrial materials, energy, and utilities