Portfolio Design and Management
Basing our work on academic research and empirical studies, Alesco structures 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, which mimic 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.

Fluctuations in the capital markets may skew portfolios away from their target asset allocation. When this occurs, we rebalance portfolios by trimming outperforming asset classes and reallocating the proceeds to underperforming asset classes. Rebalancing helps reduce the risk of the portfolio and instills a “buy low, sell high” discipline.