Mutual fund companies and wrap managers provide investors little, if any, guidance regarding appropriate asset and sub-asset allocation decisions. Service is almost entirely geared towards security selection.

As a 'top down global style rotation manager', we believe it is crucial to construct portfolios according to three criteria:

1. Asset Allocation
2. Sub-Asset Allocation
3. Security Selection

We attribute 70% of portfolio performance to the asset allocation decision, 20% of portfolio performance to the sub-asset allocation decisions, and the final 10% of portfolio performance to security selection.

Since mutual fund service is almost entirely geared towards security selection, the services provided only impact 10% of portfolio performance. The areas in which little, if any, mutual fund service is provided - asset and sub-asset allocation decisions - impact 90% of portfolio performance.