United States

Examining the RSM US Wealth Management portfolio construction process


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Asset allocation is a major driver of portfolio performance and volatility. At RSM US Wealth Management, we believe strongly in a long-term strategic approach to asset allocation. We also believe that maintaining investment discipline, over time and through various market cycles, offers the best opportunity to achieve long-term wealth objectives.

Our portfolio construction process

The asset allocations that our clients ultimately implement are arrived at through a sophisticated portfolio construction process. Due to its importance, we focus great attention on the portfolio construction process and adhere to three fundamental tenets:

  • Asset allocation is a combination of quantitative techniques and qualitative professional judgments.
  • The results of most asset allocation optimization models are highly sensitive to the inputs and constraints. The goal of asset allocation, therefore, should be to provide underlying support for intelligent and reasonable portfolio management decisions.
  • The challenge of asset allocation is differentiating the art from the science.

A goal of the process is to create a set of portfolios that offer effective mixes of assets providing maximum return for a given level of risk or minimum risk for a given level of return. We place an emphasis on risk, not just portfolio return, during our entire process. We realize and understand that a key concern for our clients is the loss of their wealth. Therefore, capital preservation is a focal point for the portfolios we ultimately create. The determination of exactly which portfolio is most appropriate for a client is the result of an analysis that takes into account factors such as risk tolerance, time horizon, desired return and overall wealth objectives.

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