Free Market Portfolio Theory

1-      Free Market Investing is based on a sound investment philosophy backed by many academics. (You can read more about the academics on the next page) Free Market Portfolio Theory in its attempt to increase investment returns without increasing risk, or to reduce risk without sacrificing returns.  Free Market Portfolio Theory is based on attempting to achieve market returns in asset categories and applying Nobel Prize-winning economic research.  Free Market Investing emphasizes high book-to-market stocks and small cap stocks, an investment strategy based on the three- factor model developed at the University of Chicago by Eugene Fama and Kenneth French.

2-      Free Market Investing uses worldwide asset class diversification. Free Market Investing utilizes asset class funds such as: international high book-to-market stocks, emerging countries’ stocks, international small stocks, and global fixed-income securities.  Matrix chooses asset classes based on low correlation to each other so that they are less likely to move in tandem.  This strategy provides better diversification as asset classes move in opposite cycles with the objective that losses in one asset class may be offset with simultaneous gains in other asset classes.

3-      Free Market Investing can reduce the costs of investing. The portfolio is rebalanced on a quarterly basis so that the target asset allocations are consistently maintained.  Free Market Investing uses no-load institutional mutual funds with low costs, low turnover, and low redemptions relative to consumer mutual funds.  There are no commissions so there are no incentives to trade.  Low fund management fees, low trading costs and low turnover mean low expenses, and low bid/ask spread costs within the mutual funds being used for clients’ portfolios.

4-      Matrix Asset Allocation offers superior education and reports. Matrix offers a quarterly audio newsletter designed to provide ongoing education and reinforcement relative to free market investing.  The www.mymatrix.cc website provides real-time access to your portfolio.  Clear, easy to understand reports explain exactly what you have and show the asset allocation of your total portfolio.

5-      Free Market Investing can simplify the investment experience. There is no need to constantly watch investments because you are always fully invested.  Diversification across markets aims to eliminate concerns over economic events.  A consistent investment strategy eliminates the need to constantly change investment strategies.  Under Matrix’s guidance, the portfolio may satisfy the very strict fiduciary standards imposed by law on trustees, officers, and directors.