PDV uses asset allocation techniques to maintain an overall desired level of risk for client assets. Ample academic research has shown spreading money among different asset classes is an effective way to control the risk of the entire portfolio.
When the client and PDV initially establish their investment advisory relationship, the client will be asked to complete a financial questionnaire with PDV's assistance. The purpose of this Questionnaire is to familiarize PDV with the client's financial situation and goals, risk tolerance level and investment time horizon. The information on the Questionnaire is critical in serving as a "blueprint" for and shaping the investment strategy that PDV will develop for the client. All such information will be kept in the strictest confidence. Based on the Questionnaire, PDV will allocate and invest the client's assets among three broad asset classes of cash/cash equivalents, fixed-income investments and stocks.