Investment time horizon
Tolerance for volatility
Our Market Views
What we believe is likely to happen
Which asset classes could perform well?
Which could underperform?
What are the potential consequences if we're wrong?
Core Manager Selection
Must have investment philosophy similar to our own
Attractive risk-adjusted returns over a complete economic cycle Consistent, repeatable investment process
Smaller losses than peers during past bear markets
Identify Satellite Positions
Based on market views
Which asset classes could potentially perform well?
Which specific positions might take advantage of current opportunities?
Considerations: process, price, performance, correlation