What we do. How we do it.
We build portfolios. We build them with particular attention to risk. Our goal is
to provide the highest potential return with the least possible risk.
So if you’ve been thinking about your savings as a portfolio but haven’t
quite got the time to actually do it, we offer a way for you to get it done.
We will do things that many individual investors fail to do.
While lots of people "get it" when it comes to index investing, they drop
the ball when it comes to execution. They let their money sit in cash. They let
stray ideas and magazine articles influence their investment choices. Or they simply
fail to re-balance when it is time.
So their returns are less than they might be. They got the idea, but there are dozens
of ways they could miss the boat for putting it to work.
We put the idea to work. We make it happen.
We take responsibility for all the details. And we do this for 20 to 50 basis points
(0.20% to 0.50%) a year.
The impact of fees would for example reduce performance by as much as 70 basis points
(.70%) per year. (Calculation based on average fee impact on $50,000 invested in
AB Model Portfolio 6 rebalanced annually for 5 years.)
If you are a dedicated independent investor, you can do much of this yourself, and
you can probably bring it in at an annual cost of about 30 basis points (0.30%)
depending on where and how you build the portfolio. We think AssetBuilder will be
worth the difference. Equally important, we know it will cost far less than the
alternatives.
In addition to meticulous execution, we also believe we will add value by mean variance
optimization of portfolios rather than easier constructions like the Couch Potato
portfolios. Mean variance optimization requires more work and a lot more than division
by a small number. With it, however, we can generally deliver a measured return
for a defined measure of risk. Our results are a fly-by-numbers operation versus
a “wink-wink, we’ll do ya a good job”.
Who is AssetBuilder For?
Portfolio accumulators - People still working who have previous
employer 401(k) accounts, other qualified plans and taxable accounts will enjoy
greater growth for any level of risk tolerance.
Distribution portfolios - Retirees and early retirees who need
to draw on their nest eggs will enjoy better odds of long-term portfolio survival.
