Portfolio Solutions® is a long-term, strategic investment manager that utilizes low-cost exchange traded funds (ETFs) and mutual funds to build globally diversified portfolios. Our model portfolios are designed by our investment committee rather than our individual financial advisors to provide a consistent, yet customizable, investment experience for our clients.
We believe that asset allocation and diversification are the most effective tools to manage the risks that investing entails. We are neither stock pickers nor market timers, as experience (as well as research) has demonstrated that the efforts often prove detrimental to returns and investor success. The higher costs – fund management fees, trading costs, and taxes – often destroy wealth rather than enhance it.
Our most reliable tool for enhancing returns is our focus on low-cost funds. Based on simple arithmetic – gross returns less costs equals net returns – research has consistently demonstrated the relationship between lower costs and higher performance. While this may lead you to think that we only use index funds and ETFs (known for their generally low fund management costs) in our portfolios’ construction, we may not for every client. While index fund-only portfolios are available to our clients, so too are portfolios of low-cost actively managed funds and strategies, allowing us to provide portfolio solutions that cater to a wide range of client preferences.
While our most reliable return-enhancement tool might be our focus on low costs, our most valuable tool for promoting better client returns is our people. Over the typical investor’s life many challenges will arise that will tempt or outright drive them to alter their investing course. Whether in bear or bull markets, the temptation to change course can be powerful and, often, imprudent. These are the events when fear of losses or fear of missing out can often result investors deviating from their well-thought-out financial plan and jeopardizing their chance of meeting their goals. Our Financial Advisors will partner with you to lend objectivity to what are often emotionally charged moments; we believe they are the real ‘secret’ of your potential investment success.