What if you expected your annual portfolio return to be 7%, in the same period global benchmarks were up 5%, but your actual return was -2%?
Solutions to the performance problem abound. Our approach, based on portfolio optimization theory, is simple:
- Correlation analysis to eliminate redundant assets in your portfolio.
- Rebalance the portfolio. Exclude stocks/mutual funds/ETFs with inadequate return or risk characteristics. Replace the laggards with assets that demonstrated better historical risk – adjusted returns.
- Optimize and stress test the mix of suggested assets to ensure the allocations are efficient and in line with your risk preferences.
Portfolio optimization and rebalancing thereafter can be a difficult task, most suitable for your financial advisor, aware of all your goals and constraints. But, a first look at the correct mix as suggested by Modern Portfolio Theory (MPT), and the contemporary incarnations, at our disposal is a great start.
Whether you are a do-it-yourself investor or financial advisor we look forward to working with you. Send us your portfolio analysis requests to: firstname.lastname@example.org
At a minimum please provide the following information:
- A complete list of the assets in your current portfolio (tickers, fund codes)
- The current or targeted percentage allocation to each asset
Download example of the optimized portfolio from here optimization-results-1.