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What is the single most important factor that determines
variation in a portfolio's return?*
- Market timing?
- Stock selection?
Actually, the answer is asset allocation. Asset allocation decisions
are the most important ingredient affecting total portfolio
volatility. In fact, asset allocation decisions account for
over 91% of an investment portfolio's performance. |
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What is asset allocation?
Asset allocation refers to the way your investments are divided
among different asset classes (stocks, bonds and money market instruments)
to reduce risk and maximize performance.
How do I know what asset allocation strategy is right for me?
In today's complex world of investment opportunities, even the
most knowledgeable investors find it difficult to develop and implement
a well-diversified investment plan. The challenge begins with selecting
the right combination of investments to meet personal investment
goals. That's where The Huntington Investment Advisor program can
help. Your Huntington Investment Representative will focus on developing
a comprehensive investment strategy geared towards achieving your
unique goals by applying asset allocation.
What are the advantages of The Huntington Investment
Advisor sm?
To learn more about the unique advantages of The Huntington Investment
Advisor program, please visit your Huntington Investment Representative
at a banking office near you or call 1-800-322-4600, option 1. Find
out how you can gain access to sophisticated investment strategies
typically not available to individual investors.
•Personalized Investment Strategies
The first step with The Huntington Investment Advisor program starts
with a comprehensive analysis of your individual investment needs.
This will allow a Huntington Investment Representative to determine
an investment strategy that is best suited to your financial situation,
your goals, your time frame, and your risk tolerance. With The Huntington
Investment Advisor program, you will benefit from personalized and
sophisticated investment strategies that are typically only available
to large institutional investors.
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•Asset Allocation and Diversification Among
Asset Classes
With The Huntington Investment Advisor program, your investment
portfolio is not only diversified across multiple asset classes,
but it's also diversified within multiple investment styles and
by using multiple money managers. The potential benefit of this
approach is improved performance with reduced volatility.
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•Access to World Class Money Managers
We have selected a line-up of some of the world's most talented
money managers and will put them to work for you. These money managers
come from some of the finest money management firms in the country.
These firms manage assets for some of the nation's largest corporations
and wealthiest individuals. Each money manager specializes in a
particular area of the market and has the experience necessary to
perfect his or her own investment styles. The selection process
is extremely intense and research driven. Each money manager is
evaluated based on the following criteria:
- Performance - Portfolio performance compared against
a benchmark relevant to his/her investment style.
- Philosophy - Managers who have a clearly defined
investment philosophy and style that has been consistently applied
over a number of years.
- Process - Their commitment to researching new
investment opportunities and discipline in making buy and sell
decisions.
- People - We look for reputable managers with a
team approach to investing.
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•Disciplined Investment Management Approach
You will have access to money managers who specialize in specific
sectors of the market. The money managers are continually monitored
to ensure that their investment style and performance remain consistent
with the objective of their respective portfolio. Advanced technology
allows us to monitor each manager every day. This is to ensure that
the manager's investment philosophy and portfolio performance meet
our high standards. Organizational changes are made for those managers
who deviate from their philosophy or fail to achieve stated goals.
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•Detailed Quarterly Account Statements
& Performance Reports
These reports are sent to you quarterly to keep you informed of
the status of your portfolio.
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*Financial Analysts Journal, B.G.P. Brinson, B.D. Singer and G. L. Beebower, June 1991
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