We use the following five steps in our optimal portfolio construction process:
Step 1: Create a Detailed Client Profile based upon the Client’s investment objectives, risk tolerance, and the specific goals and needs.
Step 2: Identify the Investment Opportunity Set, utilizing Exchange Traded Funds (ETFs), stocks, and individual bonds.
Step 3: Identify Where the Client Fits on the Efficient Frontier, understanding the balance between risk and return.
Step 4: Create a Strategic Asset Allocation based upon historical risk-adjusted returns that is customized to the Client’s specific needs and objectives.
Step 5: Tactically Rebalance Portfolios Based Upon a Combination of Factors such as the Client’s changing needs, fundamental analysis, and DT’s proprietary technical analysis.
DT Investment Partners’ investment process is a combination of both top-down and bottom-up analysis.
We develop strategic asset allocations based upon historical risk and return metrics. Strategic allocation ranges are designed to control risk for each type of investor. The primary driver of our tactical asset allocation shifts are the economic fundamentals of the various target markets. Tactical decisions are augmented by the use of a proprietary technical analysis model to ensure the portfolio is protected from irrational price momentum.