Our 3-Dimensional Universal Asset Allocation strategy is the direct result of multiple decades of investing and testing by us and others in the industry. The logic behind the 3 dimensions is that it is very hard to consistently outperform the corresponding indices with a traditional asset allocation even though the asset allocation is the single biggest deciding factor of any investment portfolio's return over the long term. That is where the role of second and third dimensions come into play.
The First Dimension: Asset Allocation
The first dimension consists of multiple asset classes with low correlation coefficients. We challenge the traditional asset mix of equities and bonds used in decades past. The use of multiple alternative investment sleeves solves the challenges of traditional asset allocation. Specific asset classes and their weighting will vary among investor risk profiles however, up to 10 individual sleeves may be allocated.
The Second Dimension: Money & Investment Principles
The second dimension incorporates 5 of the most powerful money and investment principles. We have found that investors and advisors alike often overlook these factors when structuring a portfolio using the bottom-up approach. The 5 principles of the 2nd dimension are: The Velocity of Money, Arbitrage, Strategy Correlation, Margin of Safety, and Leverage Volatility.
The Third Dimension: External Portfolio Factors
The third and final dimension considers three external factors: Market Timing, Expenses, and Tax Considerations & Strategies that can have an exponential impact on an investor's lifetime rate of return.