Asset Allocation
Every portfolio we build uses three types of building blocks: defensive assets that protect capital, traditional growth assets that drive long-term returns, and non-traditional growth assets that provide diversification and income.
Three Types of Building Blocks
| Building Block | Purpose | Examples | Role in Portfolio |
|---|---|---|---|
| Defensive | Preserve capital and reduce volatility | Treasury bonds, cash equivalents, structured notes | Anchor the portfolio during market downturns |
| Traditional Growth | Drive long-term capital appreciation | U.S. equities, international stocks, REITs | Generate the growth needed to meet long-term goals |
| Non-Traditional Growth | Diversify returns and generate income | Private equity, real estate, alternative credit | Reduce correlation and add return streams |
Building Blocks Contain Strategies
Each Building Block holds specific strategies. The mix and weight of each is set inside the broader plan, not in isolation.
Preserve capital, fund near-term cash flow, anchor the portfolio during drawdowns.
- ▸Low Risk Short-Term Cash Flow
- ▸Moderate Risk Long-Term Cash Flow
Drive long-term capital appreciation through listed equities, both systematic and discretionary.
- ▸Moderate Growth
- ▸Total Growth
- ▸Large Cap Quant
- ▸Small Cap Quant
- ▸American Value
- ▸Protected Equity Growth
- ▸Hand-Picked Stocks
Diversify return streams and reduce correlation through private markets and alternatives.
- ▸Non-Listed Non-Traditional
How We Construct Portfolios
We start with your goals, time horizon, and risk tolerance. Then we determine the right mix of building blocks to create a portfolio that balances growth potential with downside protection. Each portfolio is individually tailored, there is no one-size-fits-all model.
Which Building Blocks Help You Most?
The optimal allocation depends on what your investment objectives are and where you are in your financial life. Schedule a portfolio review to see how your current allocation compares to where it should be.
Who This Is For
- Investors who want a coordinated portfolio built from defined building blocks, not a scattered collection of holdings
- Clients whose allocation should reflect their goals, time horizon, and risk tolerance
- Those who want defensive, traditional-growth, and non-traditional assets working together
- Investors who want their allocation reviewed against where it should be, not left on autopilot
- Investors chasing a single hot stock or fund rather than a whole-portfolio approach
- Anyone wanting an off-the-shelf model with no tailoring to their situation
- Those unwilling to hold any defensive allocation that trades some return for stability
Risks, Costs, and What to Weigh
- Allocation is a tradeoff: defensive assets reduce volatility but temper returns, while growth assets raise both potential return and risk.
- There is no one-size-fits-all model; the right mix depends on your goals, time horizon, and tolerance for volatility.
- Non-traditional building blocks add diversification but are typically less liquid and carry their own risks.
- An allocation is not set-and-forget; it should be reviewed and rebalanced as markets and your life change.
Why Whitwell
Why the allocation is built this way
A portfolio is only coordinated if someone designs it to be.
Fee-only and fully aligned
Our only revenue is the fee our clients pay; no building block is chosen because it pays us.
Three building blocks, each with a job
Defensive, traditional growth, and non-traditional growth assets are combined to balance growth potential with downside protection.
Tailored to your goals, horizon, and risk tolerance
There is no one-size-fits-all model; each allocation is set for the plan it serves.
Reviewed and rebalanced, not left on autopilot
The mix is checked against where it should be as markets move and your circumstances change.