Strategic Core GlobalEach portfolio is passively managed in a separate account and customized to a client’s risk tolerance.
The goal of the strategy is to construct a portfolio commensurate with your risk profile which achieves higher risk-adjusted returns than the broad equity and fixed income markets with an equal or lower level of portfolio volatility. This strategy is based upon the tenants of the Efficient Market Hypothesis, with a very active tilt toward certain “style factors”. These factors have been well-corroborated by extensive academic research. In equities, the factors stressed are the small cap and value premiums and the low volatility anomaly. These factors, when combined in a portfolio using low cost ETFs and select Mutual Funds, have in the past exhibited higher risk adjusted returns than the broad equity market with equal levels of volatility.
In fixed income, the factors stressed are the term premium and the credit premium. When effectively managed these factors can add value over the broad fixed income market.
All client portfolios will be passively managed in a tax efficient manner. Tax loss harvesting will be used as is appropriate and available for each portfolio.
Systemic Global AlphaThis strategy tactically rebalances monthly by selecting a limited number of ETFs from a basket of relatively uncorrelated broad global asset classes. The selections are made in a systematic rules-based model using the well-established concept of momentum with a modest adjustment to account for the volatility of the asset classes. The goal of this tactical strategy is to obtain a higher risk-adjusted return than traditional equity and fixed income balanced portfolios over long-term time horizons.
The strategy offers “Risk” and “Moderate” options. The strategy was back-tested to 1991 using the core principals in the current model. Please refer to the disclaimer page regarding back tests.