Don't put all your eggs in
one basket!
Yea, but what baskets should I use and how much
should I put into each?
There are a number of so called "asset allocation" software
programs on the market today. Some of these programs are offered by mutual fund and
insurance companies allowing you to simply answer a questionnaire and their software will
determine what asset mix you should hold. At the same time, these programs recommend
their own products. Most advisors realize this type of approach does not give
credence to a thorough and objective analysis.
The basis for asset allocation was first established by
Nobel Laureate Harry Markowitz. Markowitz, the innovator of Modern Portfolio
Theory, came up with theories and mathematical formulas that allow securities to be mixed
in the most efficient way. "Efficient" meaning the highest rate of return
for any given level of desired risk.
The programs we represent are designed to help
serious advisors analyze the risk and return characteristics of client and prospect
portfolios while at the same time, giving them a method of improving porfolio return and
risk.
In 1986, Advisory World, Inc. (formerly Wilson Associates
International), developed software that used the Modern Portfolio Theory algorithm.
This software has progressed and matured into two distinct programs, Ramcap
and Power Optimizer. To learn more of how these programs can
help you attain the goals set for you and your clients, visit each of these:
Click on One
