Managed Asset Allocation Program

Reduced Risk through Portfolio Rebalancing

Late 2008 through early 2009 marked the most recent low in equity and other markets. Many investors were in denial regarding the losses their portfolios had sustained. Other investors were so fearful of the future that they reduced or eliminated their holdings and went to ‘cash’.

Clients of Sound Investment Strategies (SIS), enrolled in our exclusive Managed Asset Allocation Program (MAAP), were able to effectively maintain a balanced portfolio that dynamically adjusted to changes in market values due to historic market volatility. We all suffered, however results were far more positive than the general market and we were still invested when markets turned sharply higher.

MAAP portfolios have client specific exposures to stocks, bonds and cash equivalents. The percentage allocation of assets is selected to meet customer needs for current income, tolerance for risk and reward, time horizon and income tax considerations.

As a part of a personalized MAAP strategy,   SIS rebalances your portfolio quarterly. Systematic rebalancing maintains risk tolerance, helps to avoid emotion driven decisions and reinforces the time tested strategy of ‘buy low and sell high’.

Our MAAP program is designed to reduce volatility and risk over a market cycle while maintaining relative portfolio performance. This performance is not guaranteed, yet this strategy offers investors a clear course to sail thru the extremes of volatility in both bull and bear markets.