CORE MARKETS
WHY: Participation in economic growth
WHAT: Broad market exposure – mainly stocks and bonds
WHAT TO EXPECT: Performance that will rise and fall with the market, with deep declines on occasion
Think of your portfolio as a warehouse that houses many components of a well oiled machine which in turn produces and protects your financial opportunities.
The first shelf of the warehouse holds your most safe, liquid investments to cover your monthly obligations. This is designed to cover your expenses for the first few years of your retirement.
The second shelf of the warehouse is designed to replenish the first shelf once it is depleted. This shelf holds secure assets that we can count on to replenish the first shelf.
As time goes on, inventory shifts further towards the front of the warehouse. The further back you go in the warehouse, you’ll find investments with more potential for growth.
In this facility the drawers move closer with every passing year
The back of the warehouse holds assets that are designed to participate in the long-term growth of the market. Since we don’t need these funds until later in life or passing to heirs, we’re prepared to weather the fluctuations in the short term.
The capital markets are less predictable than anyone likes. Market volatility can be unsettling. But a steady hand enables both Bull and Bear markets to present their opportunities and challenges.
So, how do you protect your portfolio and stay open to opportunity?
Managing investments intelligently.
Life is a journey, a trip full of dreams fulfilled and milestones achieved. And while no two journeys are alike, many investors face the same questions.
How confident are you that your portfolio will help you achieve your goals in any market environment?
Would you feel more confident with a qualified wealth management team guiding you to make smart decisions with your money?
We believe that the right mix of financial strategies can help you stay on course and that an experienced guide can help you improve your long-term results.
A range of investment solutions encompassing a variety of not only asset classes but investment strategies, best in class institutional money management, and custom portfolios designed for clients’ specific needs.
Coordinating your portfolio with advanced tax, insurance, business and legacy planning solutions.
Investment solutions undergo a rigorous and ongoing due diligence review.
Streamlined access to information helps keep you up-to-date and informed.
We use strategies that stabilize and optimize. Traditional portfolio construction methods have tried to buffer equity declines by diversifying into even more asset classes. Asset class diversification alone just doesn’t do enough to help your investments weather market ups and downs. A portfolio construction approach that helps you maximize your participation in the market while also keeping an eye on those deep declines allows you to stay on track with your personal goals regardless of market fluctuations.
There is no one perfect strategy.
When utilized in a portfolio, the Investing Evolved approach can help provide a smoother investment experience over the long term, helping investors stay invested and achieve their financial goals. A portfolio that includes all three strategies has historically improved long-term results…
Maximum Drawdown
Maximum Drawdownmeasures the largest loss of a security, from the high point to the lowest, before a new peak is reached.
Volatility
Volatility is a statistical measure of the variance of returns or the amount of price change of a security over time. Volatility is calculated as a function of historical returns that uses exponential weightings to give more significance to recent observations. In addition, short and long-term measures of volatility are used to cause the indices to deleverage quickly but increase exposure more gradually on a relative basis.
S&P 500
S&P 500 is a market cap-weighted index that is considered representative of the US equity market.
S&P 500 Average Daily Risk Control
S&P 500 Average Daily Risk Control 10% relies on existing S&P 500 methodology and overlays mathematical algorithms to control the index risk
profiles at specific volatility targets. The index dynamically rebalances exposure to maintain a 10% volatility target. The index represents portfolios consisting of the S&P 500 index and a cash component accruing interest. The index is dynamically adjusted to target a level of volatility indicated below.
Bloomberg Barclays US Aggregate
Bloomberg Barclays US Aggregate covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities.
The index includes bonds from the Treasury, government-related, corporate, MBS (agency fixed-rate and hybrid ARM pass-through), ABS, and CMBS sectors. US agency hybrid adjustable-rate mortgage (ARM) securities were added to the US Aggregate Index on April 1, 2007.
MSCI EAFE is an equity index that captures large and mid-cap representation across developed markets and countries around the world, excluding the US and Canada.
Bloomberg Barclays US Corporate High Yield
Bloomberg Barclays US Corporate High Yield measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are
classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on Bloomberg Barclays EM country definition, are excluded.
FTSE NAREIT
FTSE NAREIT All Equity REITs Index is a free-float adjusted, market capitalization-weighted index of U.S. Equity REITs. Constituents of the Index include all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property.
Bloomberg Commodity Index
Bloomberg Commodity Index is calculated on an excess return basis and reflects commodity futures price movements. The index rebalances annually weighted 2/3 by trading volume and 1/3 by world production and weight-caps are applied at the commodity, sector and group level for diversification.
SG Trend Index (fka SG Trend-Sub Index)
SG Trend Index (fka SG Trend-Sub Index) is designed to track the 10 largest (by AUM) trends following Commodity Trade Advisors* (CTAs) and be representative of the trend followers in the managed futures space. Managers must meet the following criteria: must be open to new investment, must report returns on a daily basis, must be an industry-recognized trend follower as determined at the discretion of the SG Index Committee, and must exhibit significant correlation to trend-following peers and the SG Trend Indicator.
Commodity Trade Advisors
Commodity Trade Advisors are organizations providing advice and services related to trading in futures contracts, commodity options, and/or swaps.