Many investment firms use a ‘static’ asset allocation model, promising to maintain your portfolio at set weightings; for example, 60% equity / 40% debt. When market prices shift, those firms simply sell your winners and buy your losers so that they can return to their rigid 60 / 40 mix. However, we believe that making selections based on price instead of value and then adjusting those positions too often, means starting with the wrong blend of securities and then cutting short your ability to take advantage of moves in the market – and incurring extra costs in the process.
The Holos approach to asset allocation represents a specific view of investing, and the methodology we use is based on analysis of various global macroeconomic factors, in addition to individual securities’ risk/return profiles. Using these analyses, we are able to buy securities that we believe to be undervalued and sell those that we believe to be overvalued.
Our portfolios also feature broad global diversification, which may mitigate market turmoil in one region of the world or one sector of the investing universe. In addition, we create these portfolios using cost-effective and liquid products, all held in individual managed accounts which are within the client’s control at all times. |
