Portfolio MRI

3ff030_39443229d9f04237a6f00f03b1666933.jpg_256The Purpose Of The Portfolio MRI

The Portfolio MRI is a diagnostic measure of your current investment information. The purpose of this personalized Portfolio MRI is to help you understand how various mixes or styles of investment portfolios may have performed in the past.  

There are three components of the Portfolio MRI:

1- The analysis begins with a discussion of the historical returns of basic asset categories or markets and compares them to every investment’s long-term enemy-inflation.  

2- Further, the MRI attempts to estimate, via broad-based asset category selection, the current mix of your portfolio and to simulate the mix’s historical risk and reward characteristics.

3- Finally,  the Portfolio MRI allows you to compare the risk versus reward characteristics of your portfolio against those of broadly diversified mixes weighted toward small cap investing, international fixed income and equities, and high book to market value securities.

In both the analysis of your current portfolio and the mixes labeled asset allocation portfolios, indices have been used to demonstrate the performance of the various categories chosen. Studies by Brinson, Hood, and Beebower* demonstrate that 91.5% of a portfolio’s performance is determined by its allocation policy. To this end, the goal of free market investing is to provide broadly diversified portfolios that deliver market returns with reduced risk.

Most everyone will say that diversification is important to them and believe that they are diversified. However, in reality, most people are falling extremely short when it comes to actually achieving true diversification in their portfolio. Once you truly understand your current allocations we can then help you to achieve true diversification.

Before your appointment, there are a few items you will need to prepare to make the most of our time together. First, by obtaining copies of your most recent investment statements for all of your accounts. 

You can rest assured that everything is completely confidential. Call our office and get your free initial consultation scheduled.


*Source: “Determinants of Portfolio Performance,” Financial Analysts Journal, Gary P. Brinson, L. Randolf Hood, and Gilbert L. Beebower, 1986, 1990, 1991.

**Disclaimer: Past market performance is no guarantee of future investment performance or success. Diversification does not ensure a profit or guarantee against loss; it is a method used to help manage risk.[/private][/private][/private]