Our Approach To Asset Allocation

We believe that asset allocation is a primary determinant of a portfolio’s performance and risk profile.

Our asset allocation strategy recommendations are particularly detailed, based on continual testing of asset combinations to determine which combination of classes, styles, maturities, and geographic diversification have a high likelihood of producing a portfolio with the desired risk and return characteristics.

• For growth assets, we consider investment style (growth and value), market capitalization (size), and geographic diversity resulting in multiple equity categories covering domestic and major international markets and real estate.
  
  
• For income assets, we consider credit risk, maturity diversity, geographic diversity and currency risk in developing a detailed income asset strategy.
  
  
• For alternative investments, we look for those asset types that will provide unique diversification or stabilizing effects on the portfolio with proven long term track records. We don’t chase trends.

We then take things one important step further. Within many allocation segments, we recommend investing with a minimum of two managers representing complimentary approaches to that particular category– for example a fundamental and quantitative pair of managers for growth equities.

The goal: a disciplined approach, based on careful evaluation that can be consistently followed in both stable and volatile markets with confidence.

For information on Investment Management for Individuals, Families and Trusts, contact Scott George, 703-716-6000 or email invest@masoncompanies.com.

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