Guardian Portfolios

A low-cost tactically traded portfolio service design to grow and protect investment and pension assets by smoothing long-term returns.

Our unique, tactically managed portfolio service is conceived to help protect investment and pension portfolios from large stock market falls, mitigate sequence of returns risk and reduce volatility allowing investors greater confidence in consistent returns.

Our five Guardian portfolios are designed to protect income paying portfolios by smoothing longer term returns which will allow Financial Advisers to plan with greater accuracy and confi dence. Our portfolios are designed to assist in an efficient, reliable, low-cost decumulation pension strategy.

Decumulation investors could hold a combination of cash to support their income requirements and a Guardian Portfolio that focuses on providing consistent returns and capital protection. We do not use structured products that introduce additional risk and cost. Instead, we prefer the use of low-cost index-tracker funds as our underlying assets.

Reduced volatility

Smoother long-term returns, supporting more accurate cash flow modelling.

Addressing sequencing risk

A strategy designed for pensions and focused on capital preservation.

Avoiding maximum drawdown

Protecting investment and pension assets in times of market stress.

Key Objectives

  • Focuses on growth and capital preservation
  • Reduces Volatility
  • Smooths long-term returns supporting more accurate cash flow modelling
  • Limits the sequence of returns risk
  • Reduces maximum drawdown
  • Protects assets in times of market stress
Guardian Defensive Portfolio

Defensive Portfolio

The Guardian Defensive Portfolio is a tactically traded passive growth strategy. It is aimed at medium to long term investors who are seeking a cautious investment that has a genuine prospect of capital growth.

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Guardian Defensive Portfolio

Cautious Portfolio

The Guardian Cautious Portfolio is a tactically traded passive growth strategy. It is aimed at medium to long term investors who are seeking a relatively cautious investment that has a genuine prospect of capital growth.

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Guardian Balanced Portfolio

Balanced Portfolio

The Guardian Balanced Portfolio is a tactically traded passive growth strategy. It is aimed at medium to long term investors who are seeking capital growth from a diversified portfolio of mainly equity investments.

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Guardian Strategic Portfolio

Strategic Portfolio

The Guardian Strategic Portfolio is a tactically traded passive growth strategy. It is aimed at medium to long term investors who are seeking capital growth from a diversified portfolio of mainly equity investments.

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Guardian Adventurous Portfolio

Adventurous Portfolio

The Guardian Adventurous Portfolio is a tactically traded passive growth strategy. It is aimed at medium to long term investors who are seeking capital growth from a speculative portfolio of mainly equity investments.

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Decumulation Strategy

The predicament faced by income seeking investors is downside sequence of returns risk and the potential impact this has on future capital values and income withdrawals.

A very real danger to long-term income investors is the potential damaging impact of early falls in a pension fund value causing a reduction in long-term capital values, also known as sequence of returns risk. This impact is magnified when income withdrawals are needed creating a ‘double’ fall in values. Research into sequencing risk shows that an early fall in an investment creates a long-term impact on capital values which can aff ect the long-term viability of income withdrawals. Also during decumulation, the process of selling the underlying assets for income when the market is falling has a greater impact on the reduction of the underlying capital.

The Crossing Point Guardian portfolios seek to minimise sequence of returns risk, volatility and maximum drawdowns by smoothing long-term returns through the combined use of asset allocation and trend-following tactical trading. This double layer of volatility control allows fi nancial advisers to plan ahead with greater accuracy over future returns.

Crossing Point Guardian strategies are designed to protect capital values of income paying portfolios allowing retired investors to take an income from a portfolio with greater confidence.

Examples of how the Crossing Point trend-following strategies work

Crossing Point strategy trading into the UK All Stock Gilt Index vs. buy and hold portfolio - Aug 1996 - Aug 2019

Image Description

This graph displays an example of the simulated performance of £100,000 invested in the current Crossing Point Adventurous equity asset allocation using our trend-following strategy and trading into the UK All Stock Gilt Index when not invested in equities compared to an investment into the same portfolio of equity indexes with the same asset allocation without any tactical trading. The use of gilts instead of cash provides further return when out of equity markets compared to the negligible return from cash. Since 2009 the returns to gilts have been augmented due to quantitative easing by central banks around the world.

Guardian Balanced Portfolio Simulation of a £500,000 Investment Taking a 5% Annual Income vs the IA Mixed Investment 40-85% Benchmark

Image Description

This graph displays the simulated performance of a £500,000 investment into the Guardian Balanced portfolio over 5 years from October 2014 taking an annual income of 5% compared to the same income from the Investment Association 40-85% benchmark. This graph provides an illustration of the advantages of the Guardian portfolios which smooth returns by reducing volatility, maximum drawdown losses and sequence of returns risk when compared to the benchmark especially when there are dips in the market such as in 2015 and late 2018. By using Guardian portfolios an investor would have ended the 5 year period with a significantly higher value in the investment. This graph illustrates the benefits of reduced volatility upon income paying portfolios.

At any one time based upon our tactical trading signals each Multi-Index Portfolios may hold an equity allocation between the published maximum and nil.

Tomiko Evans

Chief Investment Officer

Tomiko Evans Chief Investment Officer