It’s how you mix your assets, such as cash, stocks, and fixed income investments --- and it is critically important. Inexperienced investors tend to overreact to stock market ups and downs. In the midst of stock market fluctuations, these investors are fighting an emotional battle between fear and greed. Asset management can help. Asset management reduces some of the volatility associated with investments. It may not sound very exciting, but it can be effective. Returns on diversified assets tend not to fluctuate as much as less diversified assets do. This means you probably won’t experience the stomach-churning drops that a concentrated investment or portfolio can deliver. You probably won’t know the euphoria of extraordinary, short-term profits, either. Instead, you remain positioned to meet your financial goals more smoothly and with less stress. Below are several asset managment strategies and strategists. You may find one or more to be right for you. If you have questions or for additional information, click “Contact Us” at the top of the page.

Frank Russell Company

Strategist Profile

Frank Russell Company offers investment services to individual and institutional investors in 35 countries. Russell advises clients on the investment of more than $1 trillion in assets, and serves over 1300 organizations and millions of individuals. Today, $60 billion is invested in Russell funds globally.

Investment Strategy

Founded in 1936, Russell pioneered the field of investment consulting by focusing on investment management rather than investment products.

Investment Philosophy

The Russell investment philosophy is rooted in the belief that financial markets reward knowledgeable, disciplined investors. Based on a philosophy that over a long period of time active managers can add value, Russell selects teams of money managers to meet clients` investment goals. The aim is to reduce risk and provide benchmark-beating results over time.

Goldman Sachs Global Asset Allocation

Strategist Profile

Goldman Sachs` commitment to the Asset Management Division, organized in 1988, is evidenced by swift, steady growth and expertise in managing a complete global product line that includes global asset allocation services, domestic and offshore mutual funds, institutional separate accounts and private investments. As of November 18, 1999, the Division had more than $258 billion in assets under management. The Asset Management Division is continuing Goldman, Sachs & Co.`s 130-year tradition of global financial leadership, outstanding client service and quality products. The firm’s vast global resources, fundamental research and risk management capabilities are reflected in every investment service offered.

Investment Strategy

At Goldman Sachs Asset Management, asset allocation decisions are driven by The Black-Litterman Model, a proprietary tool created by senior Goldman Sachs partners in 1990. Designed to seek an optimum balance between risk and return in a portfolio on an ongoing basis, Black-Litterman is the same tool used to manage risk for the Firm’s own balance sheet. Allocation recommendations for the Goldman Sachs Asset Allocation models are made on a quarterly basis, and while recommended changes may be subtle, they could include an addition or removal of an entire asset class.

Investment Philosophy

Because global markets have changed significantly over the decades, Goldman Sachs bases asset allocation decisions and portfolio structure on analysis of expected future returns, not simply a record of historical results. Value, momentum and inflationary expectations models are key inputs in each market the team examines. The Goldman Sachs approach seeks to add value through four layers of global decision-making including (1) Asset class decisions, (2) Equity country selection, (3) Fixed income country selection, and (4) Currency selection. Each quarter, recommendations for tactical reallocations of asset class weightings are based upon the decisions of the Goldman Sachs Quantitative Research Group.

CLS Investment Firm

Strategist Profile

CLS Investment Firm is an SEC registered investement advisor based in Omaha, Nebraska.  CLS was founded in 1989 by seasoned financial advisor, W. Patrick Clarke and is one of the largest privately owned third party money managers in the United States.  An experienced team of portfolio managers and analysts manage over $3 billion dollars for over 40 thousand investors.*

Investment Methodology

A unique combination of asset allocation and risk management, CLS calls their investment methodology Adaptive Risk Allocation. Adaptive Risk Allocation consists of four elements:
 

Diversification
Risk Budgeting
Relative Strength
Asset Class Risk
 

CLS Investment Discipline

CLS believes risk budgeting is a critical element in creating model portfolios. An investor’s risk budget is based on their individual financial goals, ability to handle risk and overall time horizon. Once a budget has been assigned, that risk cannot be over-spent nor can it be under-used. Risk budgeting manages the level of risk within an investor’s portfolio. CLS’ goal is to weather down markets, take advantage of up markets and find profitable industry segments in a sideways market. By maintaining a risk budget and making trades based on both asset class and portfolio risk, CLS is able to capitalize on areas of growth and underweight areas of risk.

Risk Budgeting

The risk associated with various asset classes changes over time. That’s why CLS’ risk budgeting is a critical element in creating and maintaining client portfolios. Our portfolio management team is always watching market conditions and making adjustments to the portfolios in accordance with the goals and risk of the portfolio.

Who is this strategy suited for?

This approach should appeal to investors who:
• Wish to maintain a consistent risk level to their investment portfolio.
• Wish to take advantage of periods of relative undervaluation among asset classes.

 

Progressive Asset Management / Lincoln Strategic with Ibbotson

Strategist Profile 

Progressive Asset Management is Lincoln's risk management program based on modern portfolio theory.  The program seeks to apply science and discipline to its goal of reducing risk for a given amount of return.

Science:  Modern Portfolio Theory

Modern Portfolio Theory, the foundation of Ibbotson is a long-term approach to investing that mixes fundamental asset classes into targeted portfolios.  The goal of the portfolio allocations is to provide the highest level of return for the risk level of the chosen portfolio.  Ibbotson uses a complex mathematical technique known as optimization to generate the portfolio allocations to each asset class.  The mutual funds for the porfolop are then selected from over 400 different funds and continually monitored by Lincoln Investment Planning using a best of style approach.

Discipline:  Quarterly Rebalancing                                                          

The goal of Progressive Asset Management and Lincoln Strategic with Ibbotson is not to enhance performance, but to help reduce risk.  As your initial target portfolio is affected by the normal volatility (ups and downs) of the stock, bond, and international markets, the allocations of each asset class will shift slightly, which could potentially increase the risk within your portfolio.  When rebalancing your portfolio quarterly, the risk level is reset to its original target.

ICON Advisers, Inc.

Strategist Profile

ICON Advisers offers private account management services to individuals, private trusts, qualified retirement plans, foundations and endowments. Since 1986, ICON has worked with financial advisors to deliver its unique money management system.  ICON Funds are a sector mutual fund series consisting of eleven domestic funds, five international region funds, and one short-term income fund.

Investment Strategy

This is a tactical allocation strategy that attempts to take advantage of short and intermediate term market inefficiencies with the goal of improving risk-adjusted returns. ICON uses its valuation methods to determine which market sectors are undervalued and then allocates accordingly. Reallocations are made as needed on a valuation rather than a calendar basis.

Investment Philosophy

Dr. Craig Callahan, chief Investment Officer for ICON Advisers, Inc., developed and manages the ICON Advisers approach, which is based upon the methods and teachings of Benjamin Graham, often referred to as the "father of securities analysis." ICON Advisers, Inc. is a value-based sector rotation strategist who believes that advances in world financial markets are defined by themes. These advances are led by specific asset classes, industries and countries that, when properly combined and weighted, outperform their related benchmarks. The most undervalued asset categories, industries, and countries are typically the leaders when new themes in world markets emerge. The ICON Valuation Model considers more than 1,700 domestic stocks and over 800 international stocks in its model. The decisions are implemented through the ICON funds. ICON Advisers, Inc uses its valuation methods to determine which market sectors are undervalued and allocates on that valuation basis.

AAMA Master

Strategist Profile

Advanced Asset Management Advisors, Inc. (AAMA) specializes in portfolio design and asset management. AAMA’s investment committee has over 100 years of combined experience, including more than 30 continuous years of managing portfolios of mutual fund investments. The goal of the AAMA portfolio management service is to provide clients with favorable risk-adjusted returns relative to market indices.

All the above asset strategies are offered as part of the TSA Solutions (Retirement Solutions) advisory program. For a complete description of terms, services and costs, see the Investment Advisory Agreement and Disclosure statement. There can be no assurance that the objectives will be met.  Your financial representative will provide you with a current asset class allocation, including specific mutual fund recommendations, and all applicable prospectuses. Read these carefully for more complete information including costs and risks before you invest or send money.