The IMYERS  DACA

Diversified Asset Class Allocation

We invest client's money based on diversified asset class allocations (DACA's).  We maintain  asset class model portfolios ranging in investment risk from conservative to aggressive.  Once a client's investment risk and current assets are determined we individually tailor one of the asset class models to suit their specific needs.  This creates a unique DACA for each client.

Please click on one of the asset class models below for a brief description.

Conservative

Moderate-Conservative

Moderate

Moderate-Aggressive

Aggressive

Creating a unique DACA involves four steps:

1.  We determine what asset classes to use.  We do this by looking at historical returns and finding asset classes affected by different economic factors.  Currently we use 15 different asset classes in our models.  This provides the benefits of diversification at the asset class level.

2.  We determine the asset classes to use, we find the securities to fill each asset class with.  We look for the securities that best represent each asset class.  For example, we are not looking for the real estate stock that is going to go up because they have oil on their land, we have oil stocks for exposure to oil, we are looking for the real estate stock that best represents real estate.  This prevents style drift within the asset classes in our models.  (For a light-hearted explanation of this check-out Your Portfolio Pie).

3.  We optimize the ideal percentage of each asset class to invest in.  This is both art and science.  Programs designed to optimize portfolios are rigidly structured around mathematical formulas which do not provide a real life optimal solution.  However, using this science and injecting some common sense we come up with allocation percentages that provide the benefits of diversification.

4.  At this point the client takes over the process by telling us exactly what they need.  We meet and determine the right asset allocation model to achieve your goals.  After determining which model to use we then customize it to account for other current assets and your lifestyle.  For example, if you own a rental property we may remove the real estate asset class in the model to account for it.  This customization process creates a unique DACA for each of our clients.


For more information about Diversified Asset Class Returns please click here.

For more information please contact us at info@investingmyers.com or 206-251-2721.