Asset Allocation

Legacy Trust’s investment experts believe that proper asset allocation is the key to designing portfolios that will achieve above-average performance in all market conditions and provide a balance of risk and reward suitable to each family. That’s not particularly surprising. Most financial planners and investment professionals believe the same. But what sets Legacy Trust apart is the rigor we bring to our allocation analyses and the expertise we have gained through many years of experience.

Drawing on extensive research in asset allocation modeling, we utilize statistical techniques to estimate expected risk and return profiles of various asset allocation alternatives and to test their sensitivity to changes in assumptions. This process reveals an “efficient frontier” of portfolio allocations that offer the most effective mix of assets to provide maximum return for any given level of risk.

Effective asset allocation cannot be based on quantitative analysis alone, however. A qualitative element must also be involved, and that element is our expertise. Legacy Trust’s experts understand the variability of asset class definitions and the impacts of structural changes, unusual events and market liquidity factors on historical data. And we adjust our asset allocation recommendations accordingly.

When the quantitative analysis has been performed and the qualitative factors have been considered, we arrive at an allocation that’s best suited to our individual families, based on their risk tolerance, time horizon, desired return and overall wealth objectives.