We Will Analyze Your Portfolio, You Decide
The Free Market Investment Analysis is a diagnostic measure of your current investment information. The purpose of this personalized Free Market Investment Analysis is to help you understand how various mixes or styles of investment portfolios may have performed in the past.
There are three components of the Free Market Investment Analysis:
1. The analysis begins with a discussion of the historical returns of basic asset categories or markets and compares them to every investment’s long-term enemy — inflation.
2. Further, the analysis attempts to estimate, via broad based asset category selection, the current mix of your portfolio and to simulate the mix’s historical risk and reward characteristics.
3. Finally, the Free Market Investment Analysis allows you to compare the risk versus reward characteristics of your portfolio against those of broadly diversified mixes weighted toward small cap investing, international fixed income and equities, and high book to market value securities.
In both the analysis of your current portfolio and the mixes labeled asset allocation portfolios, indices have been used to demonstrate the performance of the various categories chosen. Studies by Brinson, Hood, and Beebower* demonstrate that 91.5% of a portfolio’s performance is determined by its allocation policy. To this end, the goal of free market investing is to provide broadly diversified portfolios that deliver market returns with reduced risk. Additionally, institutional no-load investments may reduce your investment costs as much as 50%.
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*Source: “Determinants of Portfolio Performance,” Financial Analysts Journal, Gary P. Brinson, L. Randolf Hood, and Gilbert L. Beebower, 1986, 1990, 1991.
