Efficient Frontier Investing Approach

Combine Multiple Asset Classes
Seek to combine multiple asset classes that have historically experienced dissimilar return patterns across various financial and economic environments. Diversification does not guarantee a profit or protect against a loss

Diversify Globally
More than 50% of global stock market value is non-U.S, and international stock markets as a whole have historically experienced dissimilar return patterns to the U.S.

Invest in Thousands of Securities
Compared to a portfolio concentrated in a small number of securities, investing in thousands of securities around the world can limit portfolio losses during a severe market decline by reducing company- specific risk

Invest in High-Quality, Short-Term Fixed Income
Fixed income's role in our portfolios is to reduce volatility. We seek to accomplish this by employing:

• Shorter maturities that have low correlations historically with stocks
• High-quality instruments to lower default risk.

Multi-Factor Asset Pricing Model - 1992
Eugene F Fama & Kenneth R French, University of Chicago

• Stocks have higher expected returns and risk than fixed income
• Small company stocks have higher expected returns and risk than large company stocks
• Lower-priced "value" stocks have higher expected returns and risk than higher-priced "growth" stocks
• The research identified benefits of assuming the additional risk associated with these three factors over long investing periods