Investment Approach
Alesco’s expertise is in strategic asset allocation, as well as portfolio construction, through the use of index-based or near index investments. Our investment strategies include establishing appropriate asset class weightings, obtaining optimal diversification, reducing costs, portfolio rebalancing, and occasional tactical asset allocation decisions.
Basing our work on academic research and empirical studies, Alesco develops objectives-based, long-term asset allocation plans that capture the returns of the capital markets and reduce risk through diversification. We refer to this approach as “Intelligent Investing.”
Our strategy generally involves using “asset class” investments as the integral components of client portfolios. These securities often include index-based, as well as other passive investments that replicate the risk and return profile of specific segments of the capital markets. Because of their lower costs relative to other investment vehicles, these funds have historically outperformed the majority of actively-managed investment funds.
Index-based investments are just one tool we use to ensure efficient portfolio management, and are not used exclusively. Our flexible, individualized approach allows us to construct portfolios specific to each client, rather than assuming one strategy is right for everyone.