Investment Management Services

Partnervest Advisory Services provides a comprehensive Asset Management Program called STAR™. The STAR™ Asset Management Program utilizes highly sophisticated methods of developing client tailored investment portfolios, taking into account each client's specific financial objectives and risk tolerance. Partnervest conducts extensive portfolio analysis based on cutting edge technology and the latest research within the area of finance and portfolio theory. Please see this sample portfolio analysis (in .pdf format) for more information on how this works. Investing in the STAR™ Asset Management Program will expose you to all asset classes in a way that optimizes your portfolio diversification, i.e. enhancing your return while reducing your risk. Historically, most investment management programs focus on the historic returns of an asset and totally ignore the risks associated with it. As a result of this, most portfolios are not properly diversified or completely omit an asset class. The STAR™ program is designed to properly diversify each client's assets among different asset classes while considering both sides of the equation i.e. return and risk. The low correlation between e.g. US stocks, international stocks and bonds tends to decrease the overall risk of an investment portfolio and therefore a portfolio holding a combination of different asset classes would carry the lowest risk. However, in order to properly evaluate the performance of an investment, one must understand and quantify the risk taken to achieve a particular return. An efficient portfolio provides the highest expected return for a defined risk level, or equivalently, the lowest level of risk for an expected rate of return (see below graph).

STAR™ stands for:

• Strategic
• Tactical
• Allocation
• Risk

The underlying philosophy of the Partnervest STAR™ Asset Management Program is to:

• Understand our client’s investment objectives, time horizon and risk tolerance.
• Analyze and determine the optimal mix of asset classes and investment styles to achieve our clients' objectives within their risk parameters.
• Monitor and re-balance our clients' portfolios as the investment environment or clients' objectives change.

STAR™ Methodology
I. Client Investment Objective + Time Horizon + Risk Tolerance: Risk is simply uncertainty, and as an investor one must understand and quantify the risk taken to achieve a particular return. In financial terms, risk is a measure of volatility of returns i.e. standard deviation. Historically, most investment management programs focus on the historic returns of an asset and totally ignore the risks associated with it. Our program focuses on both sides of the equation, namely "risk" and "return". Along with the standard deviation of an asset, Partnervest also quantifies risk by another measure called "RiskGrade". RiskGrade is a standardized measure of volatility, and allows comparison of investment risk over all asset classes and regions. Take the Risk Tolerance Questionnaire now to find out what level of risk is acceptable to you.

II. Strategic Asset Allocation: is the alignment of a client's investment objectives and risk tolerance with a pre-defined universe of portfolios developed for the STAR™ Asset Management Program. According to the Brinson study published in the Financial Analysts Journal ('91), as high as 91% of the variability of your portfolio's return can be attributed to its asset allocation policy. Most clients' portfolios are not properly diversified or completely omit an asset class. The STAR™ program is designed to properly diversify each client's assets among different asset classes.

III. Tactical Asset Allocation: The goal of the Tactical Asset Allocation is to perform return-risk optimization in order to identify the optimal portfolios on the efficient frontier curve. STAR™ selects the proper mix of asset classes that was determined through the Strategic Asset Allocation process. Moreover, Partnervest monitors the portfolio holdings based on various statistical measures including: Sharpe Ratio, Maximum Draw-Down and Loss Deviation etc. This process is done dynamically to identify the best of breed funds available and incorporate them into the STAR™ Asset Management Program. STAR™ also allows investors to occasionally benefit from short-term deviations from the longer-term over all Strategic Asset Allocation. The STAR™ Asset Management Program may use strategies to take advantage of certain macro economic condition alterations.

IV. Monitoring and Re-Balancing: In order to assure that your portfolio is always positioned on the efficient frontier i.e. optimized; Partnervest Advisory Services dynamically re-balances your investment portfolio.


STAR™ Differentiators
Below are factors that separate the STAR™ Asset Management Program from the rest:

1. Focus on "risk-adjusted" return
2. Independent platform + investment management selection process
3. Quantitative and qualitative research process + client portfolio analysis
4. Customized solutions + Risk Management + Dynamic Rebalancing
5. Competitive fee structure + Tax-efficiency + No Transaction-fee (NTF) funds

There are a number of ways to implement your investment strategy. We will work with you to determine the approach that best fits your needs.

Home   CIP Notice   Privacy Policy

Company   Professional Services   Individual Investors   Technology   Partners   Contact Us

Thu Mar 11 11:42:42 PDT 2010.    Copyright © 2001-2010 Partnervest ® Financial Group LLC.    Website Comments/Questions