Our Evidence-Based approach to investing draws on more than 90 years of data and research
Our Evidence-Based Solution
Achieving your most important goals shouldn’t depend on guesswork, gut instincts, emotions or unnecessary risks.
You need a solid, globally–diversified approach—grounded in decades of data and academic research—that harnesses financial science and puts the power of markets to work for you.
We begin with the evidence: decades of data, analysis and insights from some of the best minds in finance and academia (including 12 Nobel Laureates) on factors that can help decrease risk and increase potential returns.*
Using a rigorous screening process, we identify and implement an optimized blend of investment management expertise for each. We work with a team of top investment managers, carefully aligning their expertise in accessing specific asset classes and factors of return in order to optimize each portfolio.
3. Disciplined & Independent
We believe a consistent, long-term approach is essential, but readily embrace new research when it can make a real difference for investors.
We also go to exceptional lengths to try and minimize every fraction of returns lost to income taxes, transaction costs, and other inefficiencies.
All of our Evidence-Based solutions employ an exclusive blend of top Money Managers and offer a world of smart-diversification.
Putting the Factors of Return in Your Portfolio
A key component of our Evidence-Based approach is incorporating factors of return. Factors are characteristics of stocks or bonds that have been identified by extensive research as offering the potential for:
- Higher returns over time
- Reduced risk*
Just as healthy diets depend on the right nutrients…portfolio returns depend largely on the right factors. This is why we believe that factor diversification is just as important as asset class diversification for a better long-term investment experience, especially when it comes to portfolios. Because not all factors outperform all of the time, we believe that a factor strategy requires a long-term focus, regardless of short-term performance.
Stocks tend to outperform bonds
Small company stocks tend to outperform those of large companies
Cheap stocks and bonds tend to outperform expensive stocks and bonds
Stocks and bonds that outperform in the near term tend to continue to do so
Stocks and bonds of high-quality companies tend to outperform those of low-quality companies
Minimum volatility stocks tend to offer better risk-adjusted returns than high volatility stocks
Shorter maturity / lower volatility bonds tend to have better risk-adjusted returns as compared to longer maturity / higher volatility bonds
de Carvalho, Raul Leote., Patrick Dugnolle, Xiao Lu, and Pierre Moulin, “Low-Risk Anomalies in Global Fixed Income: Evidence from Major Broad Markets,” Journal of Fixed Income Vol. 23 (2014), pp. 51-70.
Bonds with longer durations or maturities tend to outperform shorter-term bonds
Bonds with lower credit quality tend to outperform bonds of higher credit quality