Strategic
Asset Allocation
Centurion's investment philosophy focuses on Strategic Asset
Allocation; the process of determining optimal allocations of
assets (such as stocks, bonds, cash, real estate, etc.) that
suit each client's investment time horizon and risk tolerance.
The underlying concept of our program is the Nobel Prize winning
Modern Portfolio Theory that showed that through diversification
among asset classes, volatility (the risk of investment losses)
could be reduced.
Many investors have the erroneous impression that it is necessary to take a very aggressive investment posture in order to achieve significant capital growth. These investors fail to recognize the magnitude of large capital losses in this aggressive investment strategy. The table below illustrates the effects of losses on a portfolio.
Clearly, achieving large gains is not nearly as important as avoiding large losses. Centurion focuses on diversification, asset allocation and disciplined portfolio re-balancing in seeking to help clients earn consistent year-to-year returns and long term wealth accumulation.
Investment allocation may be the most important decision in the portfolio design and may account for a significant portion of the portfolio's return. By taking into account the relationship between the volatility and investment results of different asset classes, Centurion manages accounts to reduce portfolio risk while seeking strong investment returns for our clients.
The key to this investment program is ongoing professional analysis
uninhibited by commissions or sales load considerations. The
client and investment advisor establish the common goal of long-term
growth of assets and preservation of assets. As the client's
account grows in value, the advisor will be rewarded for positive
investment advice.
