Personal Benchmark: Integrating Behavioral Finance and Investment Management

Conclusion

Wealth is the ability to fully experience life.

—Henry David Thoreau

By integrating behavioral finance and investment management, Personal Benchmark enables advisors to create for investors the purchasing power that finances the life styles or experiences investors aspire to create for themselves. Framing investment strategies through the prism of your personal goals, or purpose, manages the frequently counter-productive behavioral biases that throw investors off course. Utilizing a personal benchmark does everything from helping you manage behavioral irrationalities to protecting you against some of the return-damning flows of efficient market theory.

By combining proven behavioral management tools with Brinker Capital's tested multi-asset class investment strategies (many with 19-year track records), Brinker Capital is offering a simple abstract paradigm that connects finance with the way people actually live their lives. We believe this enhancement is an advance in investment theory because it increases the explanatory and predictive power of investment theory by including plausible psychological premises.

We are highly confident that Personal Benchmark's enhancements to investment theory will improve the investment results for many, many investors. But, to emphasize only the financial advantages of a goals-based approach is to overlook its greatest richness of all, one more consistent with the epigraph above.

Simply put, personal benchmarking is about so much ...