Most clients currently receive quarterly statements from Schwab Institutional, for you, there are no changes.  A small number have chosen to receive monthly statements.  What does this mean for you?  Unless you make a qualifying transaction you will no longer receive a monthly statement.  You will continue to receive quarterly statements.  If you prefer to continue receiving your monthly statements regardless of activity in your accounts, please let us know by July 12th and we will be sure your delivery is not interrupted.

For a list of frequently asked questions, please click here.

I recently read a study by Wei Dai, a PhD with Dimensional Fund Advisors. The study discussed how diversification (read: the number of securities within a portfolio) impacts the reliability of returns. The key takeaway from her paper was this – broad diversification, combined with long-term investing (5-10 years) can improve the reliability of investment outcomes.

A strategy that is not well diversified may exclude from its holdings the companies that ultimately generate investment premiums. In other words, the odds are stacked against portfolios with fewer names. Wei shows that a well diversified strategy would have at least 200 names while over 75% of U.S. based mutual funds have less than that number. The strategies we employ seek to capture identifiable alpha through broad diversification with well-over 10,000 securities in only a handful of individual funds.

If you are interested in a copy of the paper from Dimensional Fund Advisors, please click here to reach out to a member of our team.

In this New York Times piece from Laura Vanderkam (who provided a stellar endorsement of Odds On), she audits her time to find out how busy she really is. It’s reminiscent of our own Rick Hill, who studied his calendar to find out how much of his life he earned back by adopting an evidence-based investment approach. How much was it? 6 weeks per year. As Laura says “A life is lived in hours. What we do with our lives will be a function of how we spend those hours, and we get only so many.” For the results of Laura’s study, click here.