In 1987 we introduced our Multiple Mutual Fund Strategy (“MMFS”). This strategy provides a cost effective way to participate in global markets and to efficiently rebalance portfolios. Our MMFS provides diversification well beyond that offered by a portfolio of individual securities. Quick, efficient rebalancing reduces your time out of the market.
We start with a universe of several thousand mutual funds. We narrow that universe to include only no-load funds, eliminating funds that charge commissions or marketing fees; we seek to avoid using funds that charge 12b-1 fees. We look for mutual funds with below average expense ratios and institutional and/or advisor share classes, as lower expenses boost effective returns. We then evaluate the remaining funds’ performance, historical risk and asset allocation. We also consider the background, tenure and investment philosophy of the fund managers.
From among these carefully scrutinized funds, we select a variety of domestic and international equity, domestic and international fixed income and hard asset funds to create the portfolio we believe will best further your goals with the least possible risk. Occasionally we include exchange traded funds when appropriate.
Our typical client account holds 18-25 mutual funds spread among 8-12 different mutual fund families, providing exposure to more than one thousand individual stocks and bonds around the world.
To create a cohesive portfolio and minimize volatility, we select funds that rise and fall in value at different times and at different rates, that invest in various markets, such as domestic and international and that include various asset classes, such as bonds and stocks. Each fund is chosen for its contribution to the portfolio in terms of style, market size, industry weightings, performance in up and down markets and geographic emphasis. We don't intend all of the funds we choose to perform in the same way over the short or long term. In fact, we attempt to select funds which have low correlation to one another in order to generate higher total portfolio returns with less risk over the long term. In general, we seek funds that have a lower risk relative to return ratio. While we do include some funds with higher risk measurements, the presence of lower risk funds in the portfolio helps to reduce overall portfolio risk.
Annual investment management fees for the Multiple Mutual Fund Strategy range from 0.30% to 1.00% based on account size. The minimum investment is $500,000.