The World Class Money Managers Strategy (“WCMM”)

WCMM is a practical investment strategy that:

• Is time tested

• Uses a Nobel Prize winning theory as the basis for portfolio construction

• Adopts a long term strategic approach

• Provides for broad, global diversification

• Strives to minimize the effects of short term market fluctuations

• Has the potential to reduce risk while increasing returns

How do you become a more successful investor?

That’s a question we’ve asked many investors. This is what we hear more often: “You need to pick the right stocks.”, “You need to know when to be in or out of the market.”, and “Well, I think you need to diversify.” When asked to further explain “diversify”, many people have conflicting meanings.

The options expressed above, however, account for only a small part of the answer. Studies have shown that the most significant portion of returns generated by an investment portfolio rest on one factor: Asset Allocation.

What is asset allocation?

Asset Allocation requires going well beyond the major asset classes of stocks, bonds, cash, real estate, metals, etc. For example, when we talk about stocks, do we mean domestic or foreign, growth or value, large, mid or small cap? Are bonds corporate, treasuries, foreign? It demands looking not only at relative risks of these classes, but especially how they perform relative to each other.

Also, once the proper asset allocation for each investor is established, to help keep risks in line, periodic rebalancing is necessary to avoid drifting away from the objectives set. Thus, rebalancing can:

• Establish investment discipline

• Take the emotion out of investment decisions

• Foster a sell high, buy low approach

Who are “World Class Money Managers”?

They are not necessarily the names you read about in the financial headlines. One of the main criteria we use to define them is the demonstration of consistent out-performance of their relative benchmarks. Further, we like to see them managing funds that maintain the consistency of their style class. Why does this matter? To keep our asset allocation strategy on target we want a fund that says, for example, its style is large cap value, to select securities that fall within that parameter, otherwise, the integrity of the overall strategy and thereby the client’s goals may be compromised.

How does the WCMM strategy work?

• After discussion with you, we customize a portfolio based upon your investment objectives and risk tolerances.

• We review the funds in your portfolio each quarter to determine if there have been any changes in performance, expense, style, and management. Significant departures from these parameters may result in removing a fund from the portfolio.

• We review your portfolio on its annual anniversary date and rebalance each fund’s percentage of the portfolio, if required, to ensure we maintain your proper asset allocations.

What are the benefits?

• You make the decision on your investment objectives and can be comfortable knowing your asset allocation strategy will be maintained, thereby benefiting from genuine portfolio diversification.

• You leave the guesswork and the emotion out of your investment decisions and save time as well.

• You leave the decision making to a group of world class money managers who have demonstrated the ability to consistently outperform the market and their competitors.

• You have the comfort of knowing that our systematic monitoring program maintains the integrity of your original objectives.

How do I know if a WCMM portfolio is right for me?

If you answer “yes” to any of the following questions, WCMM may be right for you.

Do you:

• Own individual mutual funds or separately managed accounts?

• Have 30 or more individual holdings?

• Have problems sticking to a consistent investment strategy?

• Try to determine when you should be in or out of the market?

• Have difficulty knowing when you should buy or sell a stock or fund?

The WCMM Strategy is based on strategically allocating capital among various mutual funds and individual securities across a broad range of asset classes from around the world. While the strategy seeks to minimize risk it does not completely minimize risk on its own. Our preference is to use the WCMM strategy as a centerpiece within an overall portfolio. By combining these managers’ long term records of success with other tactical allocations designed to further reduce risk, we believe investors will develop solid risk managed portfolios with excellent long term growth potential.

Click Here to Request Portfolio History