Your Guardian investment returns capture most of the up-market gains but miss much of the down-market losses.
Crossing Point’s Guardian strategy moves away from opinion-based decision making to an academic proven set of investment rules and principles that are regularly updated and reviewed.
Tactical Trading – Trend-Following Strategies
Our Guardian strategy aims to offer the benefits of global stock market growth while also managing downside risk through the use of trend-following strategies. A combination of varying average stock price movements can, when rising, signal a buy opportunity or, when falling, can be a signal to sell.
Guardian’s dynamic, technical, rules-based analysis actively informs us when to hold equities and when to revert to the security of safer investments. This process responds to evolving stock market conditions with each geographic equity sector monitored independently.
Trend-following market momentum signals allow us to buy into equity assets as they start to build upward momentum but also tell us when to leave the asset when markets reverse. If there is a signal to sell, we then sell out of the equity market and move to the security of safer assets to protect our gains. We repurchase equity assets when upward momentum returns.
Trend-following strategies have been shown to significantly reduce volatility and maximum drawdowns, while providing consistent capital returns. Our unique algorithm represents the best in modern investment philosophy and delivers on cost, accessibility and performance.
Each asset selected constitutes an important building block of our portfolios. We rigorously screen every asset contained within our strategies. All index tracking funds, ESG funds and investment trusts are filtered using ratings such as those by Morningstar, Rayner Spencer Mills Research and Financial Express Crown Fund Ratings. We also analyse all available assets on past performance, technical ratios and fees.
All Green Path investments are also all screened for their environmental, social and governance (ESG) principles. Green Path fund providers are all signatories of the Principle of Responsible Investing and use either positive or negative screening, or a combination of both. We also utilise Morningstar Sustainability Ratings where available.
We analyse the movement of stock market prices over differing time periods in order to decide if a market has rising momentum and should be bought or falling momentum and should be sold.
Tomiko EvansChief Investment Officer
It is commonly agreed from established academic research that asset allocation provides the majority of long-term total returns for a managed investment portfolio. Similar to other investment managers, we adopt a full risk-related asset allocation strategy using a well-diversified, accredited, global asset allocation model. Our asset selections for all our strategies are reviewed at least semi-annually to ensure optimum performance. The equity allocation for each portfolio is matched to specific investor risk profiles.