Diversified Investments
As part of The Edelman 401(k) Plan, you receive access to the Edelman Managed Asset Program®. Our investment platform, developed through years of extensive research and based on Modern Portfolio Theory, features dynamic, versatile asset allocation models designed to help minimize expenses and control risk while focusing on long-term investment results.
EMAP offers:
Potentially lower investment risks through extensive diversification.
Investing isn’t merely about generating returns — it’s equally about managing risk. That’s why EMAP is designed first and foremost to reduce investment risks — such as market risk, interest rate risk, credit risk and geopolitical risk. We accomplish this through extensive diversification, offering asset allocation models that feature as many as 19 asset classes and market sectors.
Of course, diversification does not assure a profit or protect against loss in a declining market, and there are no guarantees that a diversified portfolio will outperform a non-diversified portfolio. All investments have inherent risks, including loss of principal, for investments such as mutual funds and ETFs. As always, past performance does not guarantee future results.
Consistent, competitive strategy through a time-tested investment approach. EMAP’s extensive diversification enables you to share in the returns offered by the global financial markets. Our long-term investment approach and asset allocation strategy help you manage risks and costs over the years.
Institutional mutual funds and ETFs. We offer low-cost investments—often less than one-fifth the cost of ordinary retail mutual funds.1 EMAP provides access to investments used by some of the nation’s largest institutional investors, such as institutional mutual funds and exchange-traded funds.
Strategic rebalancing and portfolio monitoring. Even the best-designed accounts need periodic adjustments. The movement of the markets can cause accounts to drift, causing inefficiencies. We monitor your account to take advantage of rebalancing opportunities to help you manage risk and returns.
Professional Advice
With The Edelman 401(k) Plan, you have access to the information and advice you need to make educated investment decisions.
Our professional advice is designed to help keep your retirement plan on track by:
- Helping you assess your risk tolerance and providing an asset allocation analysis through our proprietary “Guide to Portfolio Selection”
- Delivering comprehensive portfolios that match your risk tolerance, time horizon and investment goals
- Offering you 24/7 online account access
- Giving you personal access to an experienced financial advisor via telephone and email
- Providing ongoing education about personal finance through articles, newsletters, books, seminars and webinars.
Prospective clients should rely exclusively on securities’ offering materials when considering whether to invest. Before making an investment decision, prospective investors should carefully consider their investment objectives, risk factors, and expenses. This and other important information is contained in each fund’s prospectus, which can be obtained from your investment advisor and should be read carefully before investing.
1 Ordinary mutual fund cost reflects the average Annual Expense Ratio for all mutual funds tracked by Morningstar (1.19% as of 12/31/09) and the average Annual Trading and Brokerage Costs based on a March 2007 study by Virginia Tech, University of Virginia and Boston College titled “Scale Effects in Mutual Fund Performance: The Role of Trading Costs”, which examined 1,706 U.S. stock funds from 1995 to 2005 and found that the average U.S. stock fund spent 1.44% per $100 of assets on trading costs. Annual Cost of Investments used by EMAP reflects the average Annual Expense Ratio (0.27% as of 12/31/09) and the average trading and brokerage costs (0.05% as of 12/31/09) of all mutual funds and exchange traded funds used by EMAP. For current fees and expenses of a given mutual fund, refer to the fund’s prospectus, which may be obtained from your financial advisor.
