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Core Portfolio

Our Core Portfolios are designed to be the foundation of a client's portfolio and based on 7  key factors.

1. Modern Portfolio Theory gives a backbone to portfolio construction, there are statistical correlations between asset classes for diversification and risk control.

2. Efficient Market Hypothesis states that the market itself is usually priced correctly. This is why most active managers do not beat the market index.

3. Stay invested for the long term. Market timing or trying to outguess the market has rarely been consistently successful.

4. Be ready to take action in the short term. The traditional buy and hold model is no longer adequate. The markets are more volatile than ever before. The markets can have short term trends and unique events that provides opportunities to take action.

5. Fundamental valuation and comparison to historic norms provides an objective point of reference for the market as a whole, an economic sector or individual company to measure over or under value. This balances emotional bias when prices are going up and down.

6. Long term rules of capital supply and demand have historically corrected market exaggerations of being up too much and down too much. When it has been said " This time it is different" has never held true over the long term.

7. We live in a global economy you must invest globally.

 Putting these factors together creates our strategy:

  •      Diversified asset allocation with broad market Exchange Traded Index Funds
  •      Over and Under Weight sectors based and fundamental valuation and market trends
  •      Regularly re-balance back to the target asset allocation
  •      Overlay hedging techniques
  •      Incorporate Inverse and Leveraged Exchange Traded Funds
  •     Add special situation positions caused by market extremes