Asset Allocation

Ironwood Investment Counsel creates an asset allocation for each client.

A typical client objective is to maintain purchasing power.  As such, a portfolio must achieve a long-term rate of return that will either equal or exceed inflation.  Portfolio contributions and withdrawals, time horizon, risk tolerance and unique constraints also define an asset allocation strategy.  The time horizon for a portfolio may be short-term or multi-generational.  Risk aversion and income requirements may dictate an all-fixed income strategy.

We utilize a core-satellite approach for asset allocation.  This method seeks additional return opportunities while attempting to better control risk.  The core strategies, which we manage on a proprietary basis, provide exposure to efficient asset classes that are representative of the market for core equities and fixed income.  For less efficient asset classes, we use satellite strategies focused on areas where outperformance is probable or areas that are uncorrelated with global equity and fixed income markets.  These two strategies, in combination, should provide risk reduction and return enhancement.

*Please Note: Limitations. : Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Ironwood) or any planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.