Similar to other investment managers, we adopt a full risk related asset allocation strategy to provide investment diversity, one predominantly represented by global index tracker funds.
Quite differently however, we hold equity assets to capture upside growth but use tactical trading to protect portfolio values from downside losses. We make the most of global equity rallies but seek to avoid subsequent falls, providing our investors with signifcantly enhanced returns at reduced risk.
Our extensive academic research has created sophisticated systems that track price movements and market momentum which signals when to effectively trade in and out of equity markets. This is decided on a monthly basis using fundamental economic data and technical market pricing analysis.
When we dectect a change from positive to negative momentum we will move assets to the protection of UK gilts and cash. As a more positive trend is restablished we will trade back into equity exposure to capture upside gains.
Comparing our tactically traded strategy directly to the equivalent equity index buy and hold strategy, our overall investment returns capture most of the up market gains but miss much of the down market losses. Providing our investors with enhanced returns at lower volatility risk.
We analyse the movement of stockmarket 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.
Stock markets moving in a general upward direction can create a growth momentum. This momentum is expressed by upward moving stock prices.
A combination of varying average stock price movement over diferent durations, can when both rising, signal a buy opportunity. Equally when stock markets fall they can create a downward momentum and similarly a combination of varying average stock price movement over different time periods, can when both falling be a signal to sell.
We analyse the momentum and movement of stock market prices over differing time periods in order ro decide if a market has rising momentum and should be bought or falling momentum and should be sold.
These 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 momentum reverses. We will then sell out of equity and move to the security of gilts or cash that protect our gains. We then re-purchase equity assets when growth momentum returns.
Our strategies are therefore designed to outperform in differing market conditions providing enhanced risk adjusted returns. Through market monitoring and tactical trading we make the most of global equity rallies, but seeks to avoid the subsequent falls. The result of our proactive management is signifcantly enhanced long term returns at reduced downside risk.
Our Multi-Index Portfolios
We offer a comprehensive range of risk controlled multi-index investment strategies.