MarketPlus® Investing

MarketPlus® Investing is based on these Four Core Fundamentals:

• Markets are efficient and are priced fairly. This means that the price of an asset is the same for everyone everywhere at a given moment. And whatever has happened to a company—good or bad—it has been reflected in the price of its stock.

• Speculating is futile. For every friend or associate you know who has hit it big on a stock tip, there are many more who have lost money trying to outguess the market.

• Global markets have rewarded investors over the long term. History has proven that markets have rewarded investors through the ages, particularly the ones who take a long-term strategy and have the discipline to stick with it.

• Portfolio design matters most. Exceeding market expectations while minimizing risk is primarily the result of portfolio design, not timing or trading.  This is where SJS Investment Services stands apart.

With decades of experience serving clients across the U.S., we know it’s the structure of the portfolio that determines performance and very little else.* That’s why SJS has spent years honing the skill of portfolio design and continues to sharpen every aspect of it through leading academic models. With that basic premise in mind, we get to know you by learning about and understanding your long-term goals, your risk tolerance, and your timeframe.

• Using history as a guide (while recognizing past performance does not guarantee future results), we accept that equities come with the risk of variability in returns—especially over the short run. Determining your threshold of short-term downside return is critical in evaluating an appropriate allocation between risky and low-risk assets.

• By engineering a portfolio to include a variety of asset classes that do not correlate entirely with one another regarding their risk and reward profile, it is possible to increase exposure to asset classes that have higher expected returns (and risk levels as measured by standard deviation) without increasing the risk level of the portfolio in its entirety.

• By incorporating small-cap, value, and profitability biases in the equity portfolio, we endeavor to push portfolios to the practical limits on the “efficient frontier,” attempting to optimize the relationship between risk assumed and expected rate of return.

 *“Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance?” Roger Ibbotson & Paul Kaplan, 2000, Financial Analysts Journal.

MarketPlus® Investing starts with a comprehensive market-wide investment structure, then builds upon it with a carefully designed mix of stocks, bonds, and other global investments weighted to match your desired investment goals, risk tolerance, and timeframe.

SJS has spent years honing the skill of portfolio design and continues to sharpen every aspect of it through applying leading academic advances, market trend analysis, and reviewing ever-changing key indicators. This is not a one-and-done endeavor. It’s continual—with you, for you—based on these principles:

• Comprehensive Market Coverage: Your portfolio will be diversified across and within asset classes, industries, and securities worldwide through the use of institutional quality mutual funds, providing you the inherent risk-management benefits of diversification.

• Calculated Risk Exposure: Your assets will be invested where better returns have historically occurred and where market indicators imply they will continue.*

• Tax-Efficient Investing: Your portfolio will be managed to have low taxable gains and tax-loss harvesting.

• Cost-Efficient Portfolio Structure: You’ll see a portfolio designed for lower turnover, which may lead to lower transaction costs. We are accountable to your net returns, so we have every incentive to be smart about costs.

• Third-Party Custodian: Your money will be managed by us, but for your peace of mind, physical custody is with a qualified independent custodian of your choice.
  
  Reviewing your portfolio regularly and rebalancing to stay true to your goals and your risk tolerance is just part of the ongoing work we do. SJS financial advisors will analyze the more complex considerations, such as evaluating changes to your asset classes and determining whether new investment offerings may be viable opportunities. 

‍* “A Five-Factor Asset Pricing Model.” Eugene Fama & Kenneth French, 2014, Journal of Financial Economics.