Developing Your Asset Allocation Model
Financial Guard’s approach to building asset allocation models is based primarily on the principles of Modern Portfolio Theory.
Fundamentally, each asset allocation model consists of 4 main asset categories with 12 distinct asset classes.
Financial Guard will use the responses provided by the client to match them to the most appropriate asset allocation model.
In an effort to use diversification to minimize portfolio risk, with respect to each asset allocation model,
Financial Guard attempts to identify an appropriate ratio of equity, fixed income, alternatives and cash suitable to a client’s investment objectives and risk tolerance.
Based on a client’s circumstances, Financial Guard will match each client to the most appropriate Financial Guard asset allocation model giving the client a portfolio that is consistent with his/her age,
time horizon and risk tolerance in accordance with information provided by the client. While Financial Guard has the ultimate responsibility for developing all asset allocation models,
QS Investors, LLC, an affiliate of Financial Guard (“QS”), provides non-discretionary asset allocation recommendations that are considered by Financial Guard as an input in developing the asset allocation models.
Please bear in mind that diversification across asset classes does not guarantee a profit or protect against loss.