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Transitions Magazine

Portfolio Construction Evidence

In summary, Centric is a better complement to active value and growth managers because (1) it does not dilute active manager decisions and (2) it fills a large company centric void in most multiple manager programs. The following graph provides statistical evidence to support these assertions. The measure of a good diversification complement is low correlation. Centric is substantially less correlated to value and growth stocks than is the S&P500. Also, Centric has about the same return and risk as the S&P, so filling the void does not sacrifice performance or increase risk vis-à-vis the S&P. uuu

Appendix: Q3, 2010 Centric Core composition (Values are Capitalization in $Billions) ADP AMGN APA

AUTOMC 20.25 DATA 50.39 AMGEN INC 28.44 APACHE CP

MET MOS MRO

AVP AXP BAX BDX

11.37 47.72 24.3 15.78

AVON PRODS AM EXPRESS BAXTER INTL BECTON DICK

NSC NTRS OXY PEP

BIIB BLK

11.48 27.37

BIOGEN IDEC BLACKROCK

PG PX

CL CMCS CNI

38.63 COLGATE-PAL 49.01 COMCAST 26.7 CDN NATL RY

QCOM RIMM SPLS

COV CPB

20.13 COVIDIEN PL 12.11 CAMPBL SOUP

TGT TJX

CSX

HPQ JCI

18.84 CSX CORP DEVON 27.22 ENRGY 25.73 EBAY INC 32.91 EMERSON EL 30.92 GILEAD SCI 23.32 GEN MILLS 47.33 HOME DEPOT HEWLETT101.49 PCK 18.08 JOHNSN CNTL

K LOW

19.01 KELLOGG CO 29.47 LOWE'S COS

DVN EBAY EMR GILD GIS HD

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TROW TYC UBS UNP UPS UTX VIA. VZ XRX YUM

September 2010

30.98 METLIFE INC 17.36 MOSAIC CO 22.04 MARATHON NORFOLK 19.56 SO 11.31 NOR TRUST 62.66 OCCID PETE 97.09 PEPSICO INC PROCTR & 172.74 GM 23.25 PRAXAIR INC QUALCOMM 52.84 IN 27.14 RSH IN MTN 13.9 STAPLES INC TARGET 36.33 CORP 17.11 TJX COS PRICE 11.42 GROUP 16.75 50.14 34.74 56.44 60.31 19.06

TYCO INTL UBS AG UNION PAC UTD PARCEL UTD TECHS VIACOM INC VERIZON 79.21 COM 11.12 XEROX CP YUM 18.23 BRANDS

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Profile for Financial Forum Inc.

Transitions Magazine - September 2010  

Business Management for Independent FInancial Advisors

Transitions Magazine - September 2010  

Business Management for Independent FInancial Advisors

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