A wide variety of studies over the course of many years have attempted to ascertain and quantify the roots of portfolio volatility. In finance terms, volatility equates to unexpected outcomes both positive & negative and the word 'unexpected' equates to risk. These studies have evaluated pension funds, mutual funds, hedge funds and even randomly selected portfolios.

These studies have concluded that the single most important way an investor can control volatility/risk in a portfolio is to focus on asset allocation - or simply the percentage mix of stocks and bonds in a portfolio. Market timing, stock selection and other factors were repeatedly proven to be much less significant. Therefore, the single most important thing an investor can do to control risk is to pick an appropriate asset allocation mix based on their timeframe & risk tolerance.

Due to the overwhelming wealth of evidence supporting the importance of asset allocation, SGL Investment Advisors has structured its selection of portfolio buckets to meet a variety of investor needs. Our individual and institutional client's needs are unique, and thusly so are their asset allocation needs ~ and we therefore have created a variety of asset allocation profiles to choose from.

During the suitability analysis process, SGL works with prospective clients to help them determine which portfolio profile most accurately meets their investment objectives. This analysis focuses primarily on the investors risk tolerance and their estimated investment time horizon. To simplify somewhat, the higher risk tolerance and longer timeframe clients should maintain an asset allocation focus more heavily weighted in stocks ~ whereas the opposite should focus more on fixed income.