Private: MAC Update Q3 2017 – October

Ralph Hartmann of FNB Capital updates his past presentation on the multiple asset class portfolio.

Watch the presentation:

Review the memorandum:

The MAC portfolio follows core principles of FNB Capital’s investment philosophy:

Over the long term, most of a portfolio’s risk and return are explained by asset allocation, rather than security selection or market timing.

Diversification remains the key to building optimally structured portfolios. As long as different asset classes are not perfectly correlated, better risk-adjusted returns can be generated by constructing portfolios that combine these asset classes.

Diversification is further enhanced by looking beyond the traditional asset classes of stocks, bonds, and cash. The judicial use of “alternatives” such as real estate, infrastructure, commodities, and hedge funds can significantly enhance the investment experience in a low interest rate, high volatility market environment.

Although short-term market movements remain inherently unpredictable, tactical asset allocation can add value over longer-term time horizons.