Asset Allocation The First Step

Asset Allocation Balancing the Risks and Returns to better target your Investment goals.

The goal of asset allocation is to create a diversified portfolio with an acceptable level of risk and the expected return given that level of risk. A portfolio or asset allocation that maximizes return for the level of risk is called an efficient portfolio

Studies have found that, over the long run, how your investments are allocated is more important than individual investments, in determining overall performance for diversified portfolios.

The independent investment firm of Ibbotson Associates ranks the importance of the three major determinants of portfolio performance as follows:

Asset allocation 91.5%
Security selection 6.7%
Market timing 1.7% 

A sound portfolio will allow investment decision to be evaluated not in isolation but in context of the portfolio as a whole with risk and returns reasonably suited to their goals.

Asset Allocation versus Diversification

Asset allocation takes this principle one step further by diversifying your portfolio not just among different investments, but among different investment classes: stocks, fixed income alternatives such as bonds, cash equivalents, and real estate and other tangible assets. Asset allocation does not eliminate risk, but it can reduce your exposure to extreme highs and lows in performance. Effective asset allocation can also help preserve capital, increase liquidity and decrease portfolio volatility.

Modern portfolio theory uses complex mathematics to evaluate different combinations of categories to determine the best return for a given risk and time horizon. The risk can be quantified into a statistically accurate prediction of performance. Of course, there are no guarantees, but the investor can see the statistically predicted range of performance of the portfolio in dollars.

Asset Allocation with Fiduciary Duty

A fiduciary duty is the highest standard, legally and ethically the law allows, this  extra step ensures that the client always come first.  Durig Capital has achieved an Accredited Investment Fiduciary we're certified to conform to the Global Fiduciary Standard of Excellence in our investment practices. The Global Fiduciary Standard of Excellence is designed to ensure investment process is focused on all the components of a comprehensive investment process, demonstrated fiduciary standards of care, and commitment to excellence.

Our investment selection methodology is rigorous and tested to meet the needs and risk tolerances of individual clients.

Once investments are selected for your portfolio, they are monitored on an ongoing basis to ensure that they continue to meet our monitoring criteria.

Underlying all of our investment strategies are quantitative models designed to help us evaluate the relative risk and historical characteristics of each investment alternative. By assigning two scores to each mutual fund each and every quarter, this research helps enable us to identify what level of decisions that are important, we can rank the alternatives from most attractive to least attractive.

We create an asset allocation model designed specifically to help meet your individual needs. This model, when compared to your existing allocation, can help identify potential shortcomings while providing an understanding of how they can be turned into strengths.

When an investment fails our criteria, it may be placed on a watch list, or it may be removed immediately depending on the situation.

Once we have created and implemented a specific model, the most important task is listening to you.

Asset Allocation Means Service

Asset allocation enables us to work together more efficiently as a team while offering an established procedure to follow when organizing and planning investments. In addition, it is specifically designed to provide you with a greater understanding of your portfolio. Ideally, this increased level of knowledge will lead to greater comfort with the investing process. These recommendations can be useful as a basis for comparison when developing individual asset allocation models.

Asset Allocation is Designed to

Help understand the risk and rewards, which may assist in prioritizing investment management.                                                                                                    

Potentially help increase long-term investment performance by identifying appropriate procedures for:

• Targeting selected assets to be included or remove from the overall portfolio.

• Diversifying the portfolio across multiple asset classes and peer groups
• Reduce risk and or volatility to the overall portfolio.
• Selecting appropriate targeted Investment Managers
• Terminating Investment Managers that no longer are appropriate
• Help uncover investment and/or procedural risks not previously identified, which may assist in prioritizing investment management projects. .
• Assist in establishing benchmarks to measure the progress of the portfolio.

Asset Allocation Plan

We provide a comprehensive asset plan with at no costs as part of our fiduciary service to investors.  This plan includes.

1. Durig Capital Fiduciary Commitment
2. Portfolio Asset Allocation
3. Investment Policy Statement.
4. Fiduciary Score Due Diligence breakdown
5. Quarterly Monitoring Report.

Durig  Capital LLC

16850 SW Upper Boones Ferry Road,

Suite F.

Portland Oregon 97224 

Toll free 1-877-359-5319

www.durig.com

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