The 7Twelve^TM Portfolio

7Twelve is a multi-asset balanced portfolio. Unlike a traditional two-asset 60/40 balanced fund, the 7Twelve balanced strategy utilizes multiple asset classes to enhance performance and reduce risk.

The 7 of 7Twelve represents the suggested number of asset classes to include in your portfolio. The Twelve represents the 12 separate mutual funds or exchange traded products to fully represent the 7 asset classes in your 7Twelve portfolio. Our portfolio has approximately a 65/35 allocation: approximately 65% of the portfolio is invested in equity and diversifying assets and about 35% invested in bonds and cash.

Building a Better Balanced Fund

Each mutual fund (or "sub-asset") in the 7Twelve strategy is equally weighted, meaning that each fund represents 1/12th of the portfolio. This allocation is maintained by rebalancing the portfolio back to equal portions annually, quarterly or monthly.

7Twelve can represent the "core" of any portfolio. A financial advisor should not be spending time designing a portfolio core for every client. Rather, the advisor should be determining how much of the pre-designed core to utilize for each client and what type of individualized "explore" assets to add around the "core" to best meet the client’s unique needs and circumstances. Using 7Twelve as the core portfolio ingredient can enhance the efficiency of a financial advisor and the portfolio performance for the investor.

Click here to download "An Introduction to 7Twelve."