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Crossing Point brings together the very best of academic analysis and investment expertise.

Risk Control

 

We control and to some degree manage volatility through a dynamic combination of asset allocation, market monitoring, tactical trading and trend-following analysis. The aim of our proactive, data-driven research aims to provide continuous long term returns with reduced volatility.

Our first layer of risk management, similar to other investment managers, is provided by diversification through asset allocation.  A global balance of investments across different asset classes and in uncorrelated assets is a primary driver of portfolio returns with the diversification aiding a reduction in volatility.

Our second layer of risk management is to use a combination of trend analysis and market signals to refine the overall portfolio asset allocations. The use of historical fund price moving averages along with current market sentiment indicators identify the strength or weakness in global markets and provide the academic data to aid the allocation of assets.

Decumulation Strategy

 

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 affect 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 and Fusion portfolios specifically 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. 

Crossing Point Guardian and Fusion strategies can be used  for income paying portfolios allowing retired investors to take an income from a portfolio with greater confidence.

Guardian Trend Following During A Crisis

Guardian Trend Following During A Crisis

Guardian trend following during a crisis document shows how the strategy worked in back testing during the 2008 crisis and live through the Covid-19 crisis.

Guardian Decumulation Strategy

Guardian Decumulation Strategy

  

The Guardian decumulation strategy document displays the effectiveness of the Guardian portfolios as a decumulation strategy.

Discover today how Crossing Point's range of portfolios can provide your clients with strong, consistent risk-controlled returns.

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