Our portfolios are managed from both the top down and the bottom up. We believe that employing both analytical disciplines provides a complete investment solution that enhances investment performance and reduces portfolio risk.
We specialize in managing the portfolio from the top down, taking a dynamic approach to its asset allocation. Driven by our forward-looking outlook for each asset class, we seek to place greater portfolio emphasis on fundamentally attractive assets, and limit or eliminate exposure to riskier ones.
We choose outside management firms for individual securities selection. Bottom up security selection is a separate and completely different discipline from top-down management. There are a number of firms that do this bottom up analysis well. So rather than developing these capabilities in house, we choose "best-in-class" managers that specialize in securities selection for each asset class that we find attractive.
We allocate portfolio resources to each manager based on the relative attractiveness of the asset class in which they specialize. Assets are added or removed from these managers based upon a number of proprietary criteria involving the quality of their ongoing efforts as well as the continuing desirability of the asset class that they follow.