FAS Investment Process
FAS’s asset allocation models are engineered with its pioneering Macro-Micro Portfolio Architecture™.
The macro layer
- Is designed, first and foremost, to protect against downside risk. No other concern is more important for overall return: a 1/3 decline requires a subsequent 50% rise just to break even!
- Harnesses the power of diversification well beyond industry norms: we allocate assets strategically across many asset classes, with dynamic rebalancing as markets fluctuate.
- Avoids a common weakness in typical portfolio strategies: most investors are herded into portfolios with just a few asset classes, thereby missing out all too often on the high performing classes.
The micro layer
- Capitalizes on another key insight: not all fund managers are created equal.
- Employs a dynamic, data-driven process that evaluates the entire universe of available funds and managers and selects the very best options in each asset class. This cutting-edge process
- Relies on sophisticated risk and return metrics;
- Considers all mutual funds and ETFs, unlike other FSP providers;
- Avoids style drift.