Kentor asset management - objective

To obtain the maximum return available while attempting to limit potential loss in any one year to less than 15% over the long-term life of the portfolio.
based on the last 32 years of market data, average annual return is highest with only a 5% chance that the portfolio will suffer a loss more than 15% in any single year with an asset mix of: target asset class benchmark
40% domestic large capitalization stocks s&p 500
30% international large capitalization stocks msci eafe
10% domestic small capitalization stocks russell 2000
80% total stocks
20% domestic bonds, reits and money markets lehman bros. aggregate bond index
100% total portfolio
this portfolio would be expected to achieve a 1% to 23% average annual return over a period of at least 5 years. during the past 32 years a portfolio with this asset allocation would have had a single worst year loss of -29.4% and worst five year average annual return of -2.5%. however, past performance is no guarantee of future returns.
the plan portfolio will be rebalanced to within 5% of the above allocation quarterly.