Portfolio Construction

A risk-controlled portfolio is more than the sum of its parts. The balance of elements within the equity portion and within the fixed income portion of the portfolio is as important as the proportion of equities and fixed income as a whole.

Using high-quality underlying fund managers is essential to a successful outcome, but balancing the elements of the portfolio—how much return and risk each element adds, how the elements interact and offset one another—is both a science and an art. PMA is expert at understanding the way portfolios act in different market conditions and constructing them to minimize risk and maximize return.

The equity portions of our portfolios have the same optimal mix of international and domestic funds, but the percentage of the overall portfolio dedicated to equities varies with the risk appetite and requirements of the client.