Wealth Building Strategies

Our primary goals of our strategy is to maximize the sharpe ratio, optimizing the balance between risk and reward. We ensured that each asset contributes to the overall portfolio risk by calculating individual risk contributions, fostering diversification. Throughout the optimization process, we imposed constraints to maintain a total asset weight of 100% while also factoring in risk contributions to achieve the desired diversified and risk balance.

ACTIVE PORTFOLIO MANAGEMENT

The blend of equities and bonds offers a well-balanced approach to diversification, combining growth potential with the stability of income. This strategy is ideal for investors seeking long-term growth with moderate risk, providing a smoother risk-return profile while prioritizing capital preservation.

Our Portfolio Devoted to 72.5% Equity:

We build portfolios using a tactical approach that enables us to cost-effectively target persistent sources of excess returns – while seeking to control for unintended risks – with the objective to deliver consistent risk-adjusted returns over the long-run. Our strategy is designed to deliver an elevated dividend yield relative to the broad market while investing in high quality companies to further enhance income consistency and stability.

Diversified Strategist Portfolios – Growth with Enhanced Income

17% Bond ETF & 6.6% Gold & 2.5% Commodities Allocation:

20% Bonds:
This portion is dedicated to fixed-income securities, offering steady income and acting as a buffer against market volatility. Bonds help stabilize the portfolio, particularly during periods of market downturns, by providing consistent returns and reducing overall risk.

9.1% High-Return Commodities:
This segment is allocated to a mix of ETFs and commodities, enhancing diversification and providing exposure to alternative asset classes. ETFs offer flexibility and access to specific sectors, while commodities, such as gold or energy, can act as a hedge against inflation and market fluctuations, adding another layer of protection and potential growth.

Our strategy involves analyzing the benchmark and making informed qualitative decisions to tactically deviate from it, with the goal of maximizing the portfolio's information ratio. More importantly, our approach seeks to allocate to an optimized mix of risk and risk control asset for robust diversification across various market environments.

We implement Tactical Asset Allocation (TAA) as it allows us to fine-tune the portfolio to take advantage of short-term variations in capital market results. In today's market, factors such as declining inflation, moderating interest rates, and improving economic conditions may present opportunities for making short-term portfolio adjustments. For Q4 2024, we will assess the macroeconomic landscape, form strategic assumptions, and implement tactical adjustments accordingly to enhance performance.

OUR REBALANCING STRATEGY

Portfolio Construction

Security Selection

Optimisation Process

Capital Market Assumptions

Risk Asset & Risk Control Portfolios

Tactical Asset Allocation

Our rebalancing strategy combines a macroeconomic framework with targeted stock selection and momentum analysis. We begin by reviewing macroeconomic trends and market outlooks to identify emerging global themes. Allocations are adjusted based on sector, geography, and historical volatility to ensure a balanced risk-return profile. Equity screening is employed to pinpoint overvalued and undervalued stocks, aiming to generate alpha. For short-term optimization, we incorporate a momentum-based approach to capture recent performance trends, ensuring alignment with both long-term insights and short-term opportunities.

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