All portfolios have unique risk and return characteristics. What about yours? How much volatility should you expect? The key decision set forth in the Investment Policy is the Targeted Asset Allocation. Research demonstrates that a portfolio’s allocation across various asset classes (e.g., stocks, bonds and cash, and their many subcategories) is the principal determinant of both risk and performance.

Given the patterns revealed by economic history, we illustrate the likely behavior of various asset allocations. You can use this information to control the amount of risk you bear. You will learn what volatility to expect, and what it means. Consequently, you will feel more comfortable when it occurs.

However well one understands risk, and prepares for volatility, abrupt market swings can make action seem urgent. The Investment Policy Statement comes into its own during periods of market turbulence. We develop the procedures that will be used to decide when action is necessary. The result—you can weather inevitable capital market fluctuations with composure.