Braden Warwick

And then we also publish the expected return of the portfolio.

Our paper has everything in geometric return, so it's simple for people to interpret and to do their own projections with if they want.

But there's kind of this intermediate step.

You have to convert the asset class geometric means back to their arithmetic means.

And then you can take the weighted average of the arithmetic means to come up with the expected arithmetic mean of the portfolio.

But then in order to get the geometric mean of the portfolio, you need to know what the standard deviation of the portfolio is.

And in order to do that, you need the correlations of those asset classes along with the standard deviations of those asset classes and the weighting that they make up in the portfolio.

So once you're able to do that, then you have the standard deviation of the portfolio and you can easily convert back to the geometric mean of the portfolio.

You may think that this is just unnecessary, it's just complex, it doesn't really add any value, but it provides, well, based on our current data, we see about a 20 to 30 basis point increase in the expected return of the portfolio, depending on the asset mix, when we do it the proper way, which is converting to arithmetic means, combining the arithmetic means and then converting back to the geometric mean of the portfolio.

And the difference that 20 to 30 basis points is the benefits of diversification and the correlation benefits that you get from holding those different asset classes in a single portfolio.

That's right.

And 20 to 30 basis points that can exceed fees in some cases.

So it is a meaningful number that I think should be included.

And it's worth noting too, that one, Conquest will do this automatically for you.

It has the proper portfolio math baked in so that if

you provide the asset class expected returns that it will do that conversion properly.

And two, previously, we also were making that same mistake.

So we were not immune to this.

We found the mistake, corrected it.

And I think that also kind of speaks to the client testimonial that it's nice to have a whole team of people, a financial advisor to diagnose that issue and fix it as a bit of a tall task because of all the other work that they have going on.