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1
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- Standing guard over your portfolio℠
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2
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- Other advisors provide you with little more than a financial road map.
The Minuteman Asset Management program stands guard, watching your
portfolio.
- Every minute of the trading day your portfolio is monitored for asset
class expansion and contractions.
- If an asset class grows or shrink beyond acceptable tolerances, the
Minuteman rebalances your portfolio.
- This ensures that the risk of your portfolio remains at a level you are
comfortable with.
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3
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4
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- End of the day: Rebalancing is usually executed through buying and
selling shares of mutual funds, once daily.
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5
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- Is it better to rebalance your portfolio
- Monthly?
- Quarterly?
- Semi-Annually?
- Annually?
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6
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- The optimal method of rebalancing is based on asset class variance.
- Study conducted by a group at MIT (Massachusetts Institute of
Technology)
- This variance-based rebalancing can reduce risk and increase returns.
- Study conducted by the Bernstein Institute
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7
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- Manager Performance
- Selecting an actively-managed mutual fund based on its historical
performance ignores that the mutual fund manager may underperform in
the future.
- If the portfolio manager did underperform, would you look to exit the
mutual fund?
- If your answer is yes, then you might fall into a bad cycle of buying
high and selling low!
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8
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- Some financial advisors recommend portfolios that include mutual funds
which have the highest historical performance, but is that the best way
to choose?
- Mutual funds go through cycles. What confidence do you have that the
fund manager will have enough superior investment ideas to meet the
needs of the new money?
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9
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10
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- Throughout the day, we monitor your portfolio for any asset class
deviation; eliminating excessive risk.
- If your portfolio become skewed (beyond acceptable tolerances) as
markets ebb and flow, it is immediately rebalanced.
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11
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- Exchange Traded Funds (ETFs) provide real time access to indexed
investments.
- Exchange Traded Funds are less expensive than their Mutual Fund
counterparts.
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12
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Notes