Asset allocation is a process that aims to balance risk and reward by appropriating a portfolio's assets according to an individual's goals, financial needs, risk tolerance and investment horizon. MainStreet Advisors analyzes numerous combinations of asset classes before choosing asset allocation.
Based on our analysis, efficient portfolios are constructed to meet the goals and investment objectives of each model. Recommended portfolios are tested in varying market environments to measure their stability.
MainStreet Advisors develops Market Weight and Active Asset Allocation Portfolios. Market Weight Allocations are long-term targets based on wealth indices and statistical analysis. Active allocations are near-term to intermediate-term targets based on current market conditions.
We believe that asset allocation is arguably the most critical determinant of portfolio returns. As such, portfolio rebalancing is utilized to position portfolios for long-term growth in alignment with clients’ investment goals and objectives.