At Salt Creek, we feel it is important for you to understand how different types of funds behave. We believe it is critical for building a diversified portfolio of mutual funds based on style. Recall the style box of Morningstar. Style analysis is one of many tools we use in our asset allocation platform. This allows us to make better decisions by taking the categorization choices out of the fund manager’s control and shedding some light on the fund’s characteristics. (Recall how misleading and confusing some of the fund’s names are). Using the work of Ron Surz and his style categorizations, we have categorized the subsets of our asset allocation based on style. The style analysis is a method we use to identify and describe the composition of the portfolios (i.e. large growth, small center). Style analysis helps us make tactical decisions for the portfolios, and it also helps clients understand what types of investments they are holding in their portfolios.
Style analysis was introduced to the world by Bill Sharpe in the late 80s and early 90s. It became a low-cost approach to holdings-based analysis. Holdings-based analysis is a bottom up approach using the characteristics of a fund’s holdings to describe a set of quantitative characteristics. It is also very expensive to implement and requires constant updating. In contrast, return-based analysis regresses a fund’s historical returns against a passively constructed reference index using 20-36 months of performance (SCI uses 36 months).
Though not as transparent as holdings-based analysis, return analysis can reveal the completeness or accuracy of the reported fund’s holdings. This helps insure that our portfolio construction is not corrupted by funds with multiple exposures. Our philosophy at SCI is to make sure you and your clients have positive experiences and positive outcomes. We believe this is made possible by providing you with a methodology based on industry tools and research proven to be effective for meeting the objectives of clients. Systematic and disciplined in our approach, we remain committed to our efforts in bringing a quality experience to you.
SCI HIGHLIGHTS
SCI Monthly Webinar
OUR NEXT SESSION:
TUESDAY, SEPTEMBER 11th
@ 12:00 PM CDT
Thank you for joining us during last week’s SCI Monthly Webinar. We had a great conversation about SCI’s Q2 performance, and we discussed the current state of markets with our CIO Jim Baldwin and Fund Manager at Payden & Rygel, Natalie Trevithick.
After receiving so much positive feedback about last week’s SCI discussion, we will be trying to line up more fund managers to join us in the future.
Join us on September 11th @ 12:00 PM CDT for another great conversation with industry leaders and SCI executives.
Click here to join the SCI Monthly Webinar
Meet Dr. Ken Sleeper
from Ocean Park Asset Management
You’re Invited!
FRIDAY, OCTOBER 12th
@ 10:00 AM CDT
LaSalle St. Securities Home Office
940 N. Industrial Dr. Elmhurst, IL 60126
Dr. Ken Sleeper will be visiting the LaSalle St. Home Office to discuss the Ocean Park Strategic Income Strategy, fixed income investing in today’s markets and the advantages of Post-Modern Portfolio Theory.
Come discuss your asset strategy options with an industry leader!
LaSalle St. Investment Advisors, LLC
940 N. Industrial Dr.
Elmhurst, IL 60126
Copyright © 2017 LaSalle St. Investment Advisors, LLC., All rights reserved.
As you consider the information provided with the Salt Creek Investors Asset Allocation Platform (the “Program”), please review the following:
The information and descriptions provided about the Program are for educational and information purposes only and should not be used or construed as investment advice, an offer to sell, a solicitation of an offer to buy, a recommendation for any security, or suggest any course of action. LaSalle St. Investment Advisers (“LSIA”) does not guarantee that the information or descriptions supplied about the Program are complete or timely. LSIA makes no warranty with regard to any results obtained from the Program or its deployment. LSIA is not responsible for any direct or incidental loss incurred by relying on information provided about the Program. The allocations presented herein are illustrations and completely hypothetical. None reflect actual investments or investment results and do not reflect allocation of any individual portfolio. Asset allocation and its results vary over time. Other allocations or asset investment categories not offered in the Program may have characteristics similar or superior to those illustrated. Past performance of any model or allocation is no prediction of future results. Neither the Program nor any system/model can predict the future of any market or price movement in a market. Diversification and asset allocation do not guarantee against the risk of investment loss, including risk of loss of principal. Information provided regarding the Program is as of the date of publication and may change at any time without notice. Information has been included which was obtained from third parties and is believed to be reliable and complete. LSIA does not warrant the accuracy or completeness of such information. LSIA is a registered investment advisor and does not provide tax, accounting or legal advice ‒ the information and/or descriptions provided do not constitute such advice. More information regarding LSIA and its investment strategies can be found in the LSIA brochure, ADV Part II, which is available online or through LSIA. Asset allocation may not be suitable for all investors. Before deciding to invest, potential participants should consult with an investment adviser to determine an appropriate investment strategy and methodology which meets the investor’s specific financial needs, objectives, goals, time horizons and risk tolerance. The information and description provided herein has been made without consideration of any investor’s particular suitability for investing in the Program. Asset allocation also involves investment in various asset classes which are not insured by the government. Investing in fixed income and/or high yield securities involves additional concerns including interest rate risk, credit risk and reinvestment rate risk. Investing in securities outside the United States may entail greater risk than investing in domestic U. S. markets. These risks typically include political and economic uncertainty of foreign countries as well as currency exchange fluctuations, including foreign currency exchange rates, political risks, different methods of accounting, financial reporting and foreign taxes. The prospectus accompanying a security should carefully be reviewed before investing. The services described herein are available to persons residing in any state where they would otherwise be contrary to local law or regulation.