Document Type

Investment Portfolio

Publication Date



The Cummer/SunTrust portfolio does not lie on the efficient frontier, but instead is positioned just below it. It is worth mentioning that the efficient portfolios are often not properly diversified, and the majority of their allocation is often composed of just one or two asset classes. The efficient frontier is not designed to tell investors a precise composition of asset classes in their portfolio. Instead, it is just another tool, or mathematical model, to help investors make prudent decisions. Consequently, the group believes that the Crummer/SunTrust portfolio is well positioned relative to the efficient frontier, which ensures high expected return for the assumed level of risk, and at the same time provides proper diversification. The portfolio’s expected return is slightly above the higher limit of required return developed in the Investment Policy Statement and the risk level is well within the level considered appropriate by the class.

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