Our Evidence-Based Solutions
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 solution . We work with an all-star 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.
- 12,000+ stocks
- 17,000+ bonds
- Across 50+ countries
- And 30+ currencies
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
Sharpe, William F. “Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk.” The Journal of Finance, Vol. 19, No. 3 (Sept. 1964), pp. 425-442
Cheap stocks tend to outperfom expensive stocks
Fama, Eugene and Ken French. “Common risk factors in the returns on stocks and bonds.” Journal of Financial Economics, 33, (1993), pp. 3-56
Small company stocks tend to outperform those of large companies
Banz, Rolf W. “The Relationship Between Return and Market Value of Common Stocks.” Journal of Financial Economics, 9 (1981), pp. 3-18
Stocks the outperform in the near term tend to continue to do so
Jegadeesh,Narasimhan and Sheridan Titman. “Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency.” The Journal of Finance, Vol. 48, No. 1, (March 1993), pp. 65-91
Stocks of high quality companies tend to outperform those of low quality companies
Novy-Marx, Robert. “The Other Side of Value: The Gross Profitability Premium.” Journal of Financial Economics, 108(1), (2013), pp. 1-28
Asness, Clifford S.; Andrea Frazzini; and Lasse H. Pedersen. “Quality Minus Junk.” Review of Accounting Studies, Vol 24 (2019), pp. 34–112
Minimum volatility stocks tend to offer better risk-adjusted returns than high volatility stocks
Ang, Andrew, Robert J. Hodrick, Yuhang Xing and Xiaoyan Zhang. “The Cross-Section of Volatility and Expected Returns.” The Journal of Finance, Vol. 61, No. 1 (Feb. 2006), pp. 259-299
Bonds with longer durations or maturities tend to outperform shorter-term bonds
Ilmanen, Antti. Expected Returns: An Investor’s Guide to Harvesting Market Rewards. WileyFinance, 2011, pp. 157-158 and pp. 183-185
Ready to get started?
Connect with your Regional Directors today.