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Indisputable benchmarks

Risk-Adjusted Parameters

To accomplish full portfolio accountability, there needs to be a clear understanding of performance benchmarks and risk metrics as outlined in the policy statement.

  • Creates a universal set of portfolio instructions applicable to all advisors.
  • Encourages blending of multiple advisor "Investment Philosophies" to enhance overall portfolio diversification.
  • Creates one common investment "language" for all portfolio investments.
  • Sets realistic portfolio return expectations based on the "Stock-Bond" policy decision.
  • Establishes a portfolio "risk budget" for all advisors that focuses on risk-adjusted returns.
  • Results in maximum advisor accountability by using the "Institutional Benchmark" to measure the success of total portfolio returns.
  • Provides thoughtful portfolio constraints such as liquidity, spending policy etc.