farrelly’s has been established to help financial planners make superior asset allocation decisions. We believe that asset allocation is a key driver of
quality results for investors.
We help planners make superior asset allocation decisions for their clients by firstly helping planners build rigorous analytical frameworks for thinking about markets, and then we create processes that bring all the resulting information together in a logical, integrated way to create superior, client-focussed portfolios.
| There are much
better ways to build portfolio's than those widely used today. |
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Most planners are profoundly uncomfortable with their current approaches to asset allocation, because they know that the approaches they’ve had at their disposal to date have not delivered the outcomes they and their clients
had expected.
They know that chasing past returns is a terrible strategy, so why should asset allocation techniques which use historical data as a key input produce anything other than terrible returns?
They know that financial markets don’t price assets efficiently, so why should asset allocation approaches predicated on the assumption that markets are efficient produce anything other than inefficient portfolios?
They know that standard deviation or short-term volatility of returns is a very crude measure of risk, and one that has little relevance to their clients. Why would asset allocation techniques based on short-term volatility as the measure of risk be relevant to their clients?
They know that often the most important aspect of their clients risk profile is the client’s need for long-term income streams, yet few of the current approaches give any guidance as to the reliability of income streams produced by different portfolios.
But most damning of all, they know that the final asset allocation outcome recommended by most fund managers, consultants and researchers is dominated by tracking error and business risk considerations. Why should their clients’ results be dominated by a third-party institutions’ business risk?
farrelly’s services are designed to overcome these shortcomings.
