Investment News & Views

Guardian Performance Review and Update
July 2020

When we launched on Feb 1st, we had no idea how quickly our Guardian trend-following strategy would be tested. We moved our planned monthly investment committee meeting and trading day forward to react to changes in the markets quickly. Throughout Feb – April, we continued to trade with more frequency than planned, but we wanted to ensure that we did all that we could to protect the money entrusted to the Guardian portfolios.

Guardian Balanced Portfolio Performance from 1 February 2020 when Crossing Point started trading to 1 July 2020 vs. the IA sector average (20-60%) and the FTSE 100.

01/02/2020 – 01/07/2020

Guardian Balanced Portfolio Performance from 1 February 2020 when Crossing Point started trading to 1 July 2020 vs. the IA sector average (20-60%) and the FTSE 100.

As the objective of the Guardian portfolios is to minimise risk, we exited markets quickly at the end of February and in the beginning of March, and cautiously re-entered the markets. All the Guardian returns over 6 months which included the large drop in March, outperformed their benchmarks by more than 4% for Cautious, Balanced, Strategic and Adventurous portfolios and 1.5% for the Defensive portfolio.

The 3-month Guardian returns underperformed their benchmarks as we protected the assets entrusted with us instead of re-investing too quickly. We are now 100% back into all equity markets, and as such our 1-month returns for the Adventurous, Strategic, and Balanced portfolios have outperformed their benchmarks.

Guardian cumulative performance 01-07-2020

Source: FE Analytics. 01.07.20

Portfolio Volatility to 1st July 2020

The Crossing Point Guardian portfolios were able to reduce volatility and maximum drawdown compared to their benchmarks. The 3-year volatility for the Guardian portfolios ranged from 8.15% for the Adventurous portfolio to 4% for the Defensive portfolio compared to the IA Mixed Investment benchmark volatilities of 10.77% to 5.79%. Although the 3-year volatility does include simulated data before Feb 1, most of the volatility experienced has occurred since we went live.

The Guardian portfolios also had much smaller 3-year maximum drawdowns with the Guardian portfolio maximum drawdowns ranging from -10.10% for the Adventurous portfolio to -4.55% for the Defensive portfolio compared to the IA Mixed Investment 40-85 equity benchmark maximum drawdown of -15.41% to -8.59% for the IA Mixed Investment 0-35 benchmark.

The reduction in volatility and maximum drawdown during this time has lasting implications for the long-run returns of these investments as well as a reduction in sequence of returns risk.

Guardian 3 year volatility measures 01-07-2020

Source: FE Analytics. 01.07.20

Historical Graphs

Below is the performance of our Guardian Balanced Portfolio vs the IA sector average (20-60%) and the FTSE 100 over different time periods. Performance before Crossing Point launched on 1 February 2020 is simulated.

01/02/2019-01/07/2020

Guardian Balanced Portfolio vs the IA sector average (20-60%) and the FTSE 100 01/02/2019 - 01/07/2020

01/02/2015-01/07/2020

Guardian Balanced Portfolio vs the IA sector average (20-60%) and the FTSE 100 01/02/2015 - 01/07-2020

Source: FE Analytics.

Guardian Performance Review

Guardian Performance Review

This review covers the period from the 1 February 2020 when Crossing Point started trading until the 1 July 2020. Our Guardian portfolios have performed well in the recent volatile markets.

Performance Update and Review

  • Friday, July 10, 2020

Comments are closed.

author

Tomiko Evans

Chief Investment Officer

Tomiko is Chief Investment Officer of Crossing Point and holds the IMC qualification for Investment Management.