Portfolio Manager - Our Methodology - Jemstep

Proven methods and patented technology.

Jemstep is the first and only resource of its kind for individual investors.

Jemstep’s patented technology is designed to maximize returns at the appropriate level of risk for each investor, while taking the complexity, difficulty, and anxiety out of investing.

The Jemstep team developed the technology underlying Jemstep, which draws on Nobel Prize-winning economic research and proven portfolio modeling methodologies, in consultation with veteran institutional money managers and investment experts.

Jemstep portfolios return more with less risk.

The chart below shows how Jemstep's five model portfolios performed in comparison with the S&P 500, a common benchmark for mutual funds, from September 2003 through September 2013. Together, the graphs show that from 2003 to 2013 each Jemstep portfolio outperformed the S&P 500 on a risk-adjusted basis. Note this historical analysis does not predict future performance.

How Jemstep maximizes your returns without undue risk.


Jemstep's investment guidance is based on your unique financial profile, including your age and income, assets and savings rate, time to retirement, and desired income at retirement.


A proven tenet of modern portfolio theory, asset allocation is based on the principle that different assets perform differently under various market conditions. So a proper balance of assets can help protect you from drastic decline or fluctuations in volatile markets while still profiting from overall market growth, dividends, or both.

In short, asset allocation is a means of optimizing your investment earnings without undue risk. Jemstep’s asset allocation methodology is based on statistical modeling of how various classes of assets behave under various market conditions, using data on how they have behaved under such conditions over time.


The second half of Jemstep’s technology is our patented investment evaluation engine. It assesses the full universe of some 20,000 mutual funds and exchange-traded funds (ETFs), analyzing 50 or more attributes of each one, to identify the best ones for building and maintaining your optimal asset allocation.

Download a pdf that describes Jemstep's methodology in more detail.