The foundation for our portfolios starts with Nobel Prize Winning Research in that of Modern Portfolio Theory. (MPT) According to Mr. Harry Markowitz – Nobel Laureate in Economist and founder of Modern Portfolio Theory (MPT) concluded that the processs of selecting a portfolio may be divided into two stages. The first stage starts with observation and experience and end with beliefs about the future performance of avaliable securities. The second stage starts with the relevent beliefs about future performances and ends with the choice of portfolio. When we started to build the portolio asset allocations for our six portfolios we were concerned with the second stage as our primary objective.
Then we continued with our proprietary fundamental & technical analysis, which is applied to the entire universe of ETF’s to narrow the group down to include only the best of the best.
Then our proprietary screens select the lowest cost ETF’s for each portolio from the best of the best.
We finish right where we started, with risk in mind and for this we turned to BlackRock. Backed by Aladdin®, BlackRock’s proprietary risk management engine allows us to see what is contributing to risk in a portfolio. Trusted by institutional investors, corporations and governments around the world.