The Four Cornerstones of Prudent Investing

The Jentner ProActive Investment Strategy™ is a passively-engineered investment strategy based on four cornerstones of prudent investing. These cornerstones guide our investment process, the construction of portfolios, and the management of accounts. Our investment strategy is designed to comply with the Uniform Prudent Investor Act. 

There are no safe havens.(1)
FACT: Fixed-income investments, such as U.S. Treasurys, cash, and CDs, are often outperformed by equities, the purchasing power of cash lags behind inflation, and gold is extremely volatile.
SOLUTION: Invest prudently and systematically in broad, globally diversified asset classes including alternative investments.  

Market timing is hazardous.(2)
FACT: The majority of active managers fail to outperform the market, and those who will outperform the market are unpredictable, and their performance is temporary.
SOLUTION: Employ a passive investment strategy to lower a portfolio’s risk and increase the likelihood of a successful investment experience over the long term.  

Concentrated portfolios are risky.(3)
FACT: In two out of five cases, individual stocks underperform the market by more than 15%, and an asset class can be the top performer one year and the worst performer the following year.
SOLUTION: Invest broadly across the global market to lower the risk of one’s portfolio being brutally damaged by one company, asset class, or country’s failure.  

Emotions are more powerful than logic.(4)
FACT: Investors whose emotions are involved in investment decisions underperform the overall market by 8.5%.
SOLUTION: Adhere to a passively engineered investment philosophy that uses logic and not emotions, which has historically resulted in the long-term growth of investments.  

Your organization cannot afford these risky behaviors. Instead, The Jentner ProActive Investment Strategy™ is globally diversified, passively engineered, and focused on long-term returns while reducing overall risk. We do this by choosing institutional asset-class funds, index mutual funds, and exchange-traded funds. Jentner concentrates on global diversification, looking at the total portfolio instead of the individual investments within it. The result is positive, attractive returns over most market cycles.

According to:
(1) Comparing Returns Between Investments by SunGard
(2) S&P Indices Versus Active Scorecard by S&P Dow Jones Indices LLC
(3) Percentage of S&P 1500 Companies Underperforming by 15 Percent or More by FactSet Research Systems
(4) The Quantitative Analysis of Investor Behavior by Dalbar

Get the Facts

It’s important to understand the reasoning behind your investment philosophy. Read our white papers to learn why we implement a passively engineered investment approach.

• The Active Versus Passive Investing Debate

• The Four Cornerstones of Prudent Investing

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