Investment Insights Podcast: The 60/40 portfolio in a world of rising rates, falling bond prices & increasing volatility

Tim Holland, CFA, Senior Vice President, Global Investment Strategist

On this week’s podcast (recorded April 27, 2018),
Tim takes a closer look at the 60/40 portfolio, including how the past few years were particularly conducive to such an approach to portfolio construction and why we have likely just entered a more challenging period for this model.

Quick hits:

  • Over the past few years, both bonds and stocks moved higher in value, really an ideal – and unusual – environment for a 60/40 approach.
  • We think 2018 marks the beginning of a tougher road for the 60/40 portfolio.
  • We also think 2018 marks the beginning of a more favorable environment for Brinker Capital’s approach to portfolio construction and asset allocation.
  • We remain constructive on the outlook for both the economy and risk assets as we move through 2018.

For Tim’s full insights, click here to listen to the audio recording.

 

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The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, Inc., a Registered Investment Advisor.

Getting your investments up to bat

Williams 150x150Dan Williams, CFA, CFPInvestment Analyst

With spring comes my favorite time of the year. Yes, the weather improves and the days get longer. However, for me, it is baseball season and corresponding fantasy baseball season that excites me. Baseball more than the other major sports is a game of statistics. It is engineered to be a series of one on one duels between a hitter and a pitcher such that individual contributions can be isolated. However, much like investing, a focus on the short-term and randomness leads even the most astute into a false knowledge of skill, and it is only through long-term analysis can truer knowledge be gained.

Consider a single at-bat between a hitter and a pitcher. The outcome is going to be a hit, an out, or a walk. If a hit occurs, especially if a home run, it is assumed that at least at that moment the hitter is very good and the pitcher is very bad. If an out occurs it is assumed the reverse. If a walk occurs the hitter has managed the least favorable of the positive outcomes and the pitcher has let the least unfavorable of negative outcomes happen. There is additional analysis that can be taken into the semantics of these three outcomes but the point remains that we have a data point of an individual success or failure. Similarly, in investing over the course of a quarter or year of performance of an investment fund we have an outperformance, underperformance, or an approximate market return relative to the corresponding benchmark and again additional stats can be gleaned from the performance such as standard deviation, upside capture, or attribution by sector selection vs. security selection.

In both cases after a short time period, a game for a hitter/starting pitcher or a quarter of performance for an investment fund, the temptation is very strong to extrapolate the just observed outcomes into the future. A successful hitter could have been lucky or was going against a poor pitcher (or a good pitcher who was having an off day). Similarly, an investment fund could have made a few lucky stock picks or was in a market environment that simply worked well with the strategy’s style of investing.

getting your investments up to bat

So does this mean we ignore the statistics of the short-term? That is, of course, foolish as the short-term is what happens as we build the data for the long-term. We always want to know what happened as it helps guide us to what will happen. It is simply wise to temper the conclusions we can draw from data over short periods. It is also humbling to know that even with ample data that can provide very close to proof of past greatness, it can never be fully relied on to provide future insight. At this point, I would say we have enough data to say Babe Ruth was a very good baseball player. However, he has been dead for about 70 years (so he is in a bit of a slump) and even if we through the miracle of science could resurrect a 30-year-old Babe Ruth, it is not a certainty he would achieve the same greatness in today’s baseball landscape. Similarly, an investment fund or strategy type that achieved great success over the long-term in the past may not achieve it in the future.

So where does this leave us? The recognition of great skill recognized solely in the short-term is unreliable and the great confidence we can achieve through the very long-term analysis thereof is not very useful. This leaves us striving for the middle ground. We look at performance data of at least a few market cycles and we additionally gain extra insight through qualitative data by talking to our investment managers and understanding the how of what they do. Through this process, we strive to send the right people up to bat and hopefully, we deliver more winning than losing seasons.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a registered investment advisor.

Get more out of your charitable giving

Wilson-150-x-150Thomas K.R. Wilson, CFA, Managing Director, Wealth Advisory

Typically, when we think about giving to charity, we think of all the lives we enrich by our support. What we sometimes overlook is how great it feels to do good.

As Elizabeth Dunn and Michael Norton explain in their book, Happy Money: The Science of Smarter Spending, “Giving and happiness are mutually reinforcing, creating a positive feedback loop.”

Covering a broad spectrum of research studies, Dunn and Norton demonstrate how those who enjoy the emotional benefits of giving feel good about themselves and tend to behave more generously in the future. They also explain that those who give to others feel wealthier than those who do not make donations, and when prosocial spending is done right, even small gifts can increase happiness.

The best way to make sure you get the most emotional benefit out of your charitable giving is simple: make your gifts about you.

YOUR choice

Reaching into your pocket when you feel backed into a corner does not strike the pleasure centers in the brain as much as when you open your wallet because you felt compelled out of a sense of purpose to do so.

Part of YOUR big picture

Next to saving for retirement and college, charitable giving is one of the top financial priorities for many American families. It has earned a seat at the financial and estate planning table along with other financial goals, yet many people overlook philanthropy when setting and prioritizing financial goals.

When you make charitable giving part of your larger financial and estate plan, you can be assured that your generosity does not negatively impact any of your other financial goals and that you gain all applicable tax benefits.

Speak to who YOU are as a person

The charitable contributions you make should reflect your most deeply held values and beliefs. Before you write your next check to charity, stop to clarify your beliefs and preferences. Do you want to end hunger, fight domestic abuse, spur economic development in your community, or eradicate cancer? Think about where you want to make an impact globally, nationally, or locally. Do you want to give to many or few? Make a list of the top three to five causes that speak to your soul. The smaller the list, the more focused your giving, and the better you will feel.

Parameters set by YOU

If you are like many other givers, you don’t know how much you’ve given to charity until tax time. By establishing a charitable budget each year, you can make better decisions about funding levels for individual causes and initiatives. With the changes brought about by the Tax Cuts and Job Act, you should speak to your accountant about having your charitable donations distributed via RMDs or see if bundling your donations are right for you.

Organizations YOU trust

Whenever you make a donation,  it is a good idea to verify that the charity is legitimate and is capable of making an impact and fulfilling its mission. You can find information about a not-for-profit’s tax-exempt status, mission, and finances at Charity Navigator, Wise Giving Alliance, or Guidestar.

Make the impact YOU want

If you don’t specify how you want your gift to be used, the not-for-profit organization will likely spend the money on their top funding priorities. In some, but not all instances, the organization’s top funding priorities align with your interests. You can, however, make a restricted gift. In doing so, you earmark your dollars to serve a specific purpose, spelled out clearly by you in a written letter of instruction.

For 30 years, Brinker Capital has served financial advisors and their clients by providing the highest quality investment manager due diligence, asset allocation, portfolio construction, and client communication services. Brinker Capital Wealth Advisory works with business owners, individual investors, and institutions with at least $2 million. To learn more about the services available through Brinker Capital Wealth Advisory, call us at 800.333.4573.

The views expressed are those of Brinker Capital. Brinker Capital does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. 

Brinker Capital, Inc., a registered investment advisor.

Brinker Capital at FSI OneVoice 2018 in Dallas, TX

beaman 150 x 150Noreen D. BeamanChief Executive Officer

For the fifth year in a row, Brinker Capital is proud to be a Premier Sponsor of the Financial Services Institute OneVoice conference. This annual meeting provides meaningful education and networking opportunities for members of the independent broker-dealers we serve. The Financial Services Institute is important to the future of our industry as they continually advocate for a healthier, more business-friendly regulatory environment for independent financial services firms and independent financial advisors.

At the 2018 OneVoice event, we are pleased to be a part of the Advancing Women in Leadership Luncheon, a pre-conference workshop being held on Monday, January 29. At Brinker Capital, we believe creating an environment for professional development and networking for women in the financial services industry is critical to the enhancement of our industry.

On Tuesday, January 30 at 1:30 PM, Leigh Lowman, CFA, Investment Manager at Brinker Capital will be participating on the Processes and Procedures panel, where they will discuss Due Diligence team structure, tools, communication, and researching and monitoring of products. Leigh shares portfolio management responsibilities for the Brinker Capital Destinations program. She is also involved in the company’s investment process, including asset allocation, manager selection, and due diligence.

And, as part of the CEO Track, I will be participating in the Rep as Portfolio Manager panel on Tuesday, January 30 at 3:00 PM. This panel will address the many questions surrounding the proper usage of Rep as Portfolio Manager programs.

Be sure to follow FSI and the event on social media @FSIWashington

We’re looking forward to a great event in Dallas, Texas!

FSI OneVoice 2

Brinker Capital, Inc., a registered investment advisor

Can money buy happiness?

Crosby_2015-150x150 Dr. Daniel Crosby Executive Director, The Center for Outcomes & Founder, Nocturne Capital

“Wealth is the ability to fully experience life.” – Henry David Thoreau

In your Psych 100 class, you were likely introduced to the concept of “operationalization,” where one concrete variable serves as proxy for a fuzzier, harder to measure construct. It is no secret that for many, the amount of wealth they have amassed serves as shorthand for happiness, but such is hardly the case. While wealth is positively correlated with well-being to a point, disconnecting money from purpose is a formula for emotional bankruptcy. One such self-delusional variant of chasing money for happiness is the “I’ll stop ignoring my happiness when I reach XYZ number.” Your magic number may be a salary or it may be a wished-for dollar amount to have in the bank. Whatever it is, I can promise you that when you get there, it won’t seem like enough. You see, we are not conditioned to think of money in terms of “enough.” As one of my clients once said to me, “Doc, you can never be too rich or too skinny.”

The scientific name for this phenomenon is the “hedonic treadmill” or “hedonic adaptation,” referring to the fact that we must make more and more money to keep our level of happiness in the same place. What tends to happen is that our expectations rise and fall with our earnings (as well as other circumstances in our life), keeping our happiness at a relatively stable place. To demonstrate this effect, I’d like for you to consider two groups that seemingly have little in common – paraplegics and lottery winners.

Can money buy happiness

 
Suppose I asked you, “Which would make you happier, winning the lottery or being in a crippling accident?” Not too tough, right? So, we would hypothesize that one-year after the life-changing event, lottery winners would be much happier and paraplegics would be much sadder. But this is simply not the case. One year after their respective events, it makes little difference whether you are riding in a Bentley or a wheelchair – happiness levels remain relatively static.

Why? We tend to overpredict the impact of external events on our happiness. One year later, paraplegics have discovered their accidents were not as catastrophic as they may have feared and have coped accordingly. Similarly, lottery winners have found out that having money brings with it a variety of complications. No amount of spending can take away some of the tough things life throws at each and every one of us. As the saying goes, “wherever you go, there you are.” In much the same way, we tend to project forward to a hypothesized happier time, when we have more money in the bank or are making a bigger salary. The fact of the matter is, when that day arrives, we are unlikely to recognize it and will simply project forward once again, hoping in vain that something outside of ourselves will come and make it all better.

A recent Princeton study set out to answer the age-old question, “Can money buy happiness?” Their answer? Sort of. Researchers found that making little money did not cause sadness in and of itself but it did tend to heighten and exacerbate existing worries. For instance, among people who were divorced, 51 percent of those who made less than $1,000 a month reported having felt sad or stressed the previous day, whereas that number fell to 24 percent among those earning more than $3,000 a month. Having more money seems to provide those undergoing adversities with greater security and resources for dealing with their troubles. However, the researchers found that this effect (mitigating the impact of difficulty) largely disappears at $75,000.

For those making more than $75,000 a year, individual differences have much more to do with happiness than money. While the study does not make any specific inferences as to why $75,000 is the magic number, I’d like to take a stab at it. Most families making $75,000 a year have enough to live in a safe home, attend quality schools, and have appropriate leisure time. Once these basic needs are met, quality of life has less to do with buying happiness and more to do with individual attitudes. After all, someone who makes $750,000 can buy a faster car than someone who makes $75,000, but his or her ability to get from point A to point B is not substantially improved. Once our basic financial needs are met, the rest is up to us. Hard work provides the means, but we must find our meaning.

If happiness does not come from hitting the lottery and sadness is not borne of personal tragedy, what does make us happy? Well, fortunately or unfortunately (depending on how well-adjusted your parents are), a great deal of happiness comes from our “hedonic set point,” which is genetically determined. A ten-year, longitudinal study of 1,093 identical twins found that between 44 percent and 52 percent of subjective wellbeing is accounted for by genetic factors. So, roughly half of what makes you happy is out of your control I’m sorry to say.

Of the remaining 50 percent, roughly 10 percent is due to external circumstances and a whopping 40 percent is due to intentional activities, or the choices we make and the purpose we create. We discussed before how we tend to overrate the importance of the things that happen to us, and sure enough, only 10 percent of what makes us happy is accounted for by lucky and unlucky breaks. Eighty percent of the non-genetic components of happiness can be controlled by our attitude and by making choices that are consistent with finding true joy. The first step in this pursuit is ensuring that the goals we are setting for ourselves are consistent with finding true happiness.

If 80 percent of the happiness that is in our control comes from setting and working toward positive goals, what sort of goals should we be setting? Headey has found that goals focused on enriching relationships and social resources are likely to increase wellbeing. We connect with a number of close friends and find joy within those relationships. On the other hand, he found that goals based around monetary achievement have a negative effect on overall wellbeing. Unlike friendship, which we “consume” in limited but satisfying quantities, we feel as though we can never really reach a financial goal. Having a core group of close friends sates us; it is sufficient to meet our social needs and we do not pine for ever-greater numbers of friends. Not so with financial goals; just as we reach our former goal, the hedonic treadmill kicks in and our excitement over having “arrived” is gone in an instant. Dr. Daniel Gilbert, a happiness expert at Harvard University, says that pursuing wealth at the expense of more satisfying goals has a high opportunity cost. “When people spend their effort pursuing material goods in the belief that they will bring happiness, they’re ignoring other, more effective routes to happiness.” The simple fact is this: chasing money and material goods is an itch that our flawed psychology will never let us scratch, unless we can define our financial goals in terms of the personal ends they will meet.

In a money-obsessed world that has socialized us to chase the almighty dollar, it can be weirdly unsettling to learn that money isn’t everything. As much as we whine about money, having something that is the physical embodiment of happiness is nice. We can hold it, save it, get more of it, all while mistakenly thinking that getting paid is how we “arrive.” Realizing that money does not directly equate to meaning can leave us with a sense of groundlessness, but once we’ve stripped away that faulty foundation, we can replace it with things that lead to less evanescent feelings of happiness. Breaking your overreliance on money as a substitute for real joy is a great first step, a second step is learning to spend your wealth in ways that matter.

Lest we swing from the extreme of “money is the only good” to the opposite extreme of “money is no good,” it is worth noting that there are ways in which money can be spent to improve happiness. A lot of our troubles with money stem from the way we spend it, thinking that buying “things” will make us happy. We engage in retail therapy, which is quickly followed by feelings of regret at being overextended. Before we know it, we’re surrounded by the relics of our discontent; the things we bought to be happy become constant reminders that we’re not. Instead of amassing a museum of junk, spend your money on things of real value. Spend a little more on quality, healthy food and take the time to savor your new purchases. Use your money to invest in a dream – pay yourself to take a little time off and write that novel about which you’ve always dreamt. Give charitably and experience the joy of watching those less fortunate benefit from your wealth. A growing body of research suggests that the most important way in which money makes us happy is when we give it away. Finally, spend money on having special experiences with your loved ones. It’s true that money doesn’t directly buy happiness, but it can do a great deal to facilitate it if you approach it correctly.

The Center for Outcomes, powered by Brinker Capital, has prepared a system to help advisors employ the value of behavioral alpha across all aspects of their work – from business development to client service and retention. To learn more about The Center for Outcomes and Brinker Capital, call us at 800-333-4573.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

Investing in Game of Thrones

Williams 150 X 150Dan Williams, CFA, CFPInvestment Analyst

Nothing else could make me, and many others, actually look forward to Sunday night like Game of Thrones. Of course I felt a need to draw some wisdom to the investment world from this show if for no other reason than I get to relieve my separation anxiety from the many months until the show comes back for its final season. Thankfully this season lends itself easily to the task.

For those unfamiliar with the show let me sum it up as briefly as possible (warning vague spoilers). There exists a continent called Westeros that is divided into numerous houses/kingdoms that swore fealty to the House that sits on the Iron Throne. In the recent past, there was a rebellion that disposed of the longstanding ruling House Targaryen and drove the surviving member(s) of the house off the continent into hiding. The show opens with a member of House Baratheon sitting on the throne. Well, that king gets killed “by accident on a hunting trip.” His best mate, who is head of House Stark, becomes involved in investigating the situation in the capital city and gets beheaded. House Lannister slides onto the throne by a member of the house being conveniently married to the former king. This whole situation causes much trouble as House Stark wants revenge, House Targaryen and Baratheon want to take back the throne, and the rest of the Houses see opportunity to reposition themselves. A bunch of people kill some other people by various methods. Some body parts get cut-off. Some dragons show up. Some people come back from the dead by unnatural methods. Really a classic story. So that is it.

Wait! I forgot! Up north there are reports of a huge frozen undead army being formed that threatens to sweep down and kill everyone. This threat is summed up as “Winter is coming.” No biggie, right? Oops!

GOT.Winter is Coming
The parallel that can be drawn to the investment world is that while people are chasing and comparing themselves to each other’s performance and asset class benchmarks, they take the eye off the primary goal – survival. The Houses all want more castles and the glory to sit up on the Iron Throne while John Snow, one of the show’s main protagonists who has been positioned up north for the majority of the show, said this season “If we don’t put aside our enmities and band together, we will die. And then it doesn’t matter whose skeleton sits on the Iron Throne.”

While we are not necessarily battling our neighbors – like the houses of Westeros – for bragging rights of investment returns, it is still the wrong struggle to have. The great threat to the north is our inability to meet our goals due to poor investment planning. We can go off track by spending too much or saving too little. We can take on too much or too little risk or invest in the wrong account types. We can be operating tax inefficient. We can fail to insure against the unlikely but devastating potential life events. Planning with an advisor should be focused on setting a path that provides the best likelihood for success against this enemy of insufficient assets for our goals rather than the bragging rights of a few year of investment returns.

During this season, attempts were made by John Snow to refocus the warring houses to the real threat of the north. This threat has been lurking for all seven seasons of the show and the big question is – is it too late for them? Similarly, the challenge of investment goal planning is easiest when taken on as early as possible or before winter comes. The adviser’s role is similar of that to John Snow’s, get their clients to start to properly prepare as early as possible for the threats that matter.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

Business ownership…its personal

Coyne_Headshot-150x150John Coyne, Vice Chairman

We recently held the second call in our Business Owner Transition series with Matt Coyne, author of Straight Talk from the Front Lines and CEO of Brandywine Mergers and Acquisitions.  Matt’s presentation primarily focused on the idea that an advisor must play the emotional therapist as much as the transition planner. He emphasized that an advisor’s role is to help the business owner realize the purpose of owning a tangible asset is to maximize its value, not to infuse it with a personality like a favorite old retainer in Downton Abbey.

Many years ago, I had the opportunity to hear the great Peter Lynch of Fidelity Magellan fame and he said something so profound that it’s been my mantra ever since.  He said, simply, “stocks don’t know you own them.”  He went on to state that stocks don’t care if you’re a Bishop or an axe murderer; they don’t know that your dad worked at the company for 30 years; or, that your grandmother made you swear you would never sell good old Texaco (my mom in this case).  These lessons apply equally here with some variations.

Business Ownership Its Personal

 
Every business owner must consider the impact of a sale on their employees, their customers, and their families.  But, that should be as dispassionate in the analysis as any other valuation they will be conducting.  A buyer, no matter how invested in the industry or this acquisition, is only looking at the purchase for the opportunity it presents to make money for themselves and their investors.  They will happily listen to war stories and personal histories at the closing dinner, but these will never move the EBITDA one dollar.

An advisor needs to help the business owner recognize that the business was a means to an end.  And, it is this reward that should have the personal feelings attached to it because it represents that they, their families and their legacy will enjoy the fruits of their labor.  It is like the young woman in the Liberty Mutual ad who loved but totaled her car “Brad” until the insurance company called and she broke into her happy dance.  So we all need to put on our tap shoes and get our owners out on the dance floor!

For 30 years, Brinker Capital has served financial advisors and their clients by providing the highest quality investment manager due diligence, asset allocation, portfolio construction and client communication services. Brinker Capital Wealth Advisory works with business owners, individual investors and institutions with assets of at least $2 million. To learn more about the services available through Brinker Capital Wealth Advisor, click here.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

Building the team for the business owner: Picking your first partner

Coyne_HeadshotJohn Coyne, Vice Chairman

Last week, we hosted a terrific webinar with Andrew Haas, a senior estate planning partner at Blank Rome, a major Philadelphia-based national law firm. Over 100 financial advisors throughout the country signed on to participate.

It dawned on me as I listened to Andrew that when building a team for a business owner client, financial advisors should align first with an estate planning attorney. Why? Because together, not only can you help business owners understand how their life will be after the sale of the business, advisors can help business owners recognize their own mortality.

My friend, Dan Prisciotta of Lincoln Financial, has a line in his excellent book, One Way Out, which is about helping business owners exit their business for the highest possible value. In the book, Dan says, “Your exit is 100% guaranteed whether you go out vertically or horizontally.”

shutterstock_495324130

The role of the partnership is to help business owners maximize the value of their business so they can enjoy the fruits of their labor and secure their legacy after they are gone. The estate planning lawyer is the bucket of ice water that can wake the business owner up to the reality that poor preparation of the exit plan will have a direct impact on how their family and heirs will live their lives after they are gone.

An estate plan coupled with a financial plan prepared by you reflects an exciting and reasonably predictable future after exit. You have helped them take the first step in letting you build their team. The key to a great partnership is transparency. By having both the financial plan and estate plan fully understood by all parties, as these are both living documents and will evolve over time, you can keep everyone’s eyes on the target of a successful exit.

We want to help advisors help their business owner clients live the life they’ve worked for. The way to begin the process may lie with helping them understand life after they’re gone.

To help decide which estate planning attorney is appropriate, you may consider engaging in some of the services that are offered through investment management firms such as Brinker Capital that have relationships with a wide array of organizations. Brinker Capital Wealth Advisory works with business owners, individual investors and institutions with assets of at least $2 million and has partnerships with firms that can assist with the estate needs of business owners.

To learn more about Brinker Capital, a 30-year old firm following a disciplined, multi-asset class approach to building portfolios, and an overview of the services available through Wealth Advisory, click here.

Have a safe and enjoyable Independence Day weekend!

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

Being Okay Can Help You Reach Your Goals

Dan WilliamsDan Williams, CFA, CFP, Investment Analyst

Simply being “okay” is often considered to be somewhat unsatisfying. Most companies aim for a consumer regard that’s higher than “okay” and the win-at-all-costs mindset is encouraged beginning at an early age. As Will Ferrell so aptly put it in Talladega Nights: The Ballad Of Ricky Bobby, “If you ain’t first, you’re last.”

It goes without saying that the efforts of financial advisors should always be of the highest standards and putting the needs of investors first and foremost. The aggressive pursuit of playing to win at the cost of finishing the race can be highly detrimental in the world of investments. Blindly seeking out the highest returns for the assets of an investor saving for retirement can wreak havoc and have potentially disastrous consequences.

The value of a financial advisor is not getting his/her clients to their goals in an exciting manner; but rather to get them there through reliable methods. For example, more often than not, making sure clients have insurance proves to be an unnecessary task, but in rare cases it can prevent financial catastrophe. Similarly, having 3-6 months of living expenses in liquid cash equivalent assets is often a performance drag, but it can prevent figurative flat tires from causing havoc on a clients’ life journey. The practice of dollar-cost averaging typically lags the performance of putting all of one’s money into the market immediately, but it ensures that investors are buffered from bad timing impacting their lump-sum purchase.Being Okay

This idea of spreading out risk translates well into an investment portfolio that is diversified across multiple asset classes. A meaningfully diversified portfolio may rarely hit performance homeruns, but it has the potential to get investors to their savings goals with less market volatility. At Brinker Capital, all of our investment portfolios are built on this idea of diversification. While an investors’ hindsight bias may cause them to regret not being 100 percent in the “right” asset class and frustrate the financial advisor who’s kept their clients on track, the reward for the proper long-term asset allocation is a successful completion of the race. Much like the tortoise of The Tortoise and the Hare, the journey may not be as quick as some would like, but continuous progress is made overtime to compound wealth and achieve a savings goal. Meaningfully diversified multi-asset class portfolios will fare better than all-equity portfolios in bear markets and better than all-fixed income portfolios in bull markets. In years when domestic equity and fixed income lag global market and alternative asset classes, diversified multi-asset class portfolios will bolster performance.

While most of us strive to achieve wins in life, at Brinker Capital, we believe that our diversified multi-asset portfolios leave investors okay. And, this is something of which we are truly proud of.

Memorial Day: A time to remember

Noreen D. BeamanNoreen D. Beaman, Chief Executive Officer

Did you know? The original meaning behind Memorial Day, which was officially proclaimed on May 5, 1868 by General John Logan, was to set aside time to remember the brave men and women who gave the ultimate sacrifice while serving the United States of America. We encourage all of you to take a moment over the weekend to remember the true meaning of the holiday and honor the men and women who sacrificed their lives for our freedom.

In observance of Memorial Day, Brinker Capital will be closed on Monday, May 29.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.