Financial advisors were not created equal, and as an investor – what considerations should be taken when selecting an advisor who will be involved in helping to achieve your family’s goals for their financial future?
In the first three quarters of 2022, American households lost about $6.8 trillion, the 8.6% drop is the second fastest decline in real wealth, and the only greater drop was following the financial crisis of 2008-09.1 During the 2008-09 financial crisis, $7.4 trillion in stock wealth was lost; on average, $66,200 per household.2 For Mark Matson and Matson Money, the strategy hasn’t changed in over 30 years and Mark doesn’t waiver from his message: “If you build your portfolio to last for 20 years, you don’t have to worry about the next 20 minutes.”
At Matson Money, we have a proprietary algorithm for managing and rebalancing our portfolio over time. We manage over $9 billion in assets under management and over 70,000 accounts, with the algorithm rebalancing regularly to target optimal results. The portfolio consists of over 25,500 unique holdings in 21 asset categories across 78 countries; as of December 2022. It is built on historical data that is relevant and not random, based on extensive academics and Nobel Prize-winning research. The Matson Method combines leading research in behavioral economics, finance, neuropsychology, and the field of human performance studies into an innovative and powerful investing science. The Matson Method integrates three academic principles, making up Matson Money’s investing methodology; Efficient Market Hypothesis, the Three Factor Model, and Modern Portfolio Theory are utilized to help engineer a portfolio designed to capture market returns for long-term wealth creation.
In addition to the academics of investing science, advisor coaches working with Matson Money can be both distinct and unique. They are continually trained and developed in getting grounded in being “unmessable with” – developing the ability to respond to questions that come their way when it comes to investing. Matson Money is committed to being transparent on all levels; from the portfolio to the custodian level, to the company.
Whether you are a financial advisor interested in a new world of investing or an investor seeking to learn and help shield themselves from the exploitation of the financial industry, Matson Money is taking a stand to revolutionize the financial industry for families globally.
10 ways Matson Money is committed to transforming the industry and being a stand for investors:
- We stand for our client’s lives, not just their money
- We’re financial coaches, not just financial advisors
- We work with funds based on science and academics
- We provide GIPS verified returns
- People and purpose come before portfolios
- We explain the volatility in the market, empower investors to assess their risk tolerance, and provide a Portfolio MRI®
- Our Academic Advisory Board is comprised of well-respected professionals in their respective fields, including a Nobel Prize Winner, and a Recipient of the Presidential Medal of Freedom
- We have the American Dream Experience
- No minimums, you can have $10,000 or $10,000,000
- Meet Mark Matson at the American Dream Experience
Join a community of advisors helping to transform people’s relationship to money. If you are interested in having an open conversation about what can often go undiscussed within families – their financial future, learn more about the American Dream Experience. This 2-day educational event led by Founder and CEO Mark Matson and VP of Coaching, Josh Crawford can help train and develop investors to have confidence in their long-term investment strategy.
1. Household wealth dropped by $13.5 trillion from January to September, second-worst destruction on record. https://www.marketwatch.com/story/household-wealth-down-by-13-5-trillion-in-2022-second-worst-destruction-on-record-11670623787
2. Over 10 Years Later, Lessons From the 2008 Financial Crisis. https://www.investopedia.com/news/10-years-later-lessons-financial-crisis/
This content is not to be considered investment advice and is not to be relied upon as the basis for entering into any transaction or advisory relationship or making any investment decision.
This content includes the opinions, beliefs, or viewpoints of Matson Money. All of Matson Money’s advisory services are marketed almost exclusively by either Solicitors or Co-Advisors. Both Co-Advisors and Solicitors are independent contractors, not employees or agents of Matson.
Other financial organizations may analyze investments and take a different approach to investing than that of Matson Money. All investing involves risks and costs. No investment strategy (including asset allocation and diversification strategies) can ensure peace of mind, guarantee profit, or protect against loss.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
The Nobel Memorial Prize in Economic Sciences, commonly referred to as the Nobel Prize in Economics, is an award for outstanding contributions to the field of economics, and generally regarded as the most prestigious award for that field.
Markowitz, Harry. “Portfolio Selection.” Journal of Finance. 1952.
Harry Max Markowitz is an American economist, and a recipient of the 1989 John von Neumann Theory Prize and the 1990 Nobel Memorial Prize in Economic Sciences. Markowitz is a professor of finance at the Rady School of Management at the University of California, San Diego.
Efficient Market Hypothesis, first explained by Dr. Eugene Fama in his 1965 doctoral thesis.
Eugene F. Fama, “Random Walks in Stock Market Prices,” Financial Analysts Journal, September/October 1965.
Eugene F. Fama, 2013 Nobel laureate in Economic Sciences; is widely recognized as the “father of modern finance.” His research is well known in both the academic and investment communities. He is strongly identified with research on markets, particularly the Efficient Market Hypothesis.
Eugene F. Fama, Kenneth R. French, “The Cross-Section of Expected Stock Returns,” Journal of Finance 47, No. 2, (June 1992); Eugene F. Fama, Kenneth R. French, “Common Risk Factors in the Returns on Stocks and Bonds,” Journal of Financial Economics 33, No. 1, (February 1993); Eugene F. Fama, Kenneth R. French, “Profitability, Investment and Average Returns,” Journal of Financial Economics 82, No. 3 (December 2006); Eugene F. Fama, Kenneth R. French, “A Five-Factor Asset Pricing Model,” Journal of Financial Economics 116, No. 1 (April 2015);
Three Factor Model
Fama, Eugene F. and Kenneth R. French. “The Cross-Section of Expected Stock Returns,” Journal of Finance, 47, June 1992.
Efficient Market Hypothesis
Eugene F. Fama, “Random Walks in Stock Market Prices,” Financial Analysts Journal, September/October 1965.
Modern Portfolio Theory
Markowitz, Harry. Portfolio Selection: Efficient Diversification of Investments. New York. Wiley. 1959. Print.
Academic Advisory Board members receive compensation from Matson Money for their services which include, but are not limited to, independent leadership consulting; co-authoring white papers; and speaking at Matson Money conferences. Advisory Board members may also provide insight to Matson Money on portfolio construction, asset allocation, quantitative analysis, investor behavior and other areas of expertise, as needed.
Matson Money believes that the stock market is efficient and that free markets work. Based on this belief, Matson focuses on attempting to capture market returns utilizing asset class or structured funds, seeks to utilize broad diversification, and attempts to eliminate stock picking, track record investing, and market timing from the investment process.
Matson Money manages client investments utilizing a fund-of-funds strategy. Client accounts are invested in a mix of a proprietary series of mutual funds advised by Matson, which allocate investments across three broad asset classes: domestic equity, international equity, and fixed income. Matson-advised funds seek to allocate across these broad asset classes by investing in various mutual funds or ETFs. The specific target allocation of each client’s Matson-advised strategy depends on the individual investor’s risk tolerance and investment horizon, and is selected by the client at account opening. More information on mutual funds, ETFs, and associated fees, is available in fund prospectus documents, available online at: http://funddocs.filepoint.com/matsonmoney/.
Fund of Funds Risk: The investment performance of client portfolios is affected by the investment performance of the underlying funds in which the portfolio is invested. The ability of the total client portfolio to achieve its investment objective depends on the ability of the underlying Matson-advised mutual funds to meet their investment objectives, on Matson’s decisions regarding the allocation of the portfolio’s assets among the underlying Matson-advised mutual funds, and on Matson’s decisions regarding investments made by the underlying Matson-advised mutual funds. The portfolio may allocate assets to an underlying fund or asset class that underperforms other funds or asset classes. There is no assurance that the investment objective of the portfolio or any underlying fund will be achieved. When the portfolio invests in underlying funds, investors are exposed to a proportionate share of the expenses of those underlying funds in addition to the expenses of the portfolio. Matson may receive fees both directly on your account as well as on the money your account invests in the underlying funds, and the underlying funds themselves may bear expenses of the mutual funds or ETFs in which they invest. Through its investments in the underlying funds, the portfolio is subject to the risks of the underlying funds’ investments, with certain underlying fund risks described later in this content. More information on mutual funds, ETFs, and associated fees, is available in fund prospectus documents, available online at: http://funddocs.filepoint.com/matsonmoney/.
References to Holdings
Due to Matson’s investment philosophy and methodology, any references by Matson or by unaffiliated third parties to specific holdings, number of holdings, or specific countries or asset classes are references to the underlying funds in which the Matson-advised mutual funds invest. Mutual funds currently use SEC Forms N-PORT and N-CSR to disclose their quarterly holdings at the end of each fiscal quarter (Form N-PORT replaced Form N-Q),therefore any specific holdings cited are accurate as of that date or is data provided directly by the underlying fund company itself, and do not in any way represent portfolio management research or trading decisions made by Matson Money, other than to the extent Matson Money has allocated Matson-advised mutual fund investments to such underlying funds. Form N-PORT can be found online at https://www.sec.gov/Archives/edgar/.