Washington Trust Bank brings institutional expertise and strategies to our clients that would not be available to them when managing their own portfolios. One of the main reasons for the difference in the long-term performance of institutional portfolios versus individual portfolios has been better diversification.
Historically, individual portfolios have diversified by using only traditional assets—stocks and bonds. We believe that true diversification and effective risk management can only be achieved using asset classes that are not highly correlated, but highly complementary to traditional stock and bond strategies. Our experience allows for the construction of individual portfolios that have the same diversification sophistication as institutional portfolios.
