Windham Capital Management has launched an asset allocation strategy for advisors, high net worth individuals, small endowments, and family offices that uses risk measures originally designed for the firm's institutional investing clients.
Announced Sept. 30, the Windham Tactical Portfolio uses lower-cost exchange traded funds (ETFs) to invest in a diversified mix of stocks, bonds, commodities, and real estate while seeking to protect investors against risks such as inflation, rising interest rates, currency devaluation, and market turbulence.
The strategy, which requires a minimum investment of $250,000 and includes a 1% fee for directly managed funds, adjusts a portfolio's investment mix daily to grow principal in times of low risk and to preserve principal in times of high risk.
"Why a
re we launching this now? This is the kind of advisory service that we have been providing to large institutional clients who build their own portfolios and add these processes into their asset allocation techniques," Windham Managing Partner Stan Shelton said in a phone interview. "In this new business, Windham is taking managed portfolios using these same techniques and using exchange traded funds to create this tactical portfolio process."
Founded in 1988, Boston-based Windham Capital Management manages more than $35 billion in currencies for large institutional investors. Windham's founder and CEO, Mark Kritzman, is also a founding partner of institutional research firm State Street Associates, as well as a graduate course instructor in financial engineering at the Massachusetts Institute of Technology and a board member of the Institute for Quantitative Research in Finance.
