Investment Objectives of the WSC All Weather Model Portfolio:
- The WSC All Weather Model Portfolio (AWP) is designed to perform reasonably well during all market conditions and should, therefore, be regarded as a core investment.
- The aim is to achieve absolute positive and stable returns over a three-year investment horizon by exploiting the diversification premium in a very systematic way.
Typical Investor:
- Investors focused on long-term capital appreciation.
- Investors searching for a core investment or an alternative to a typical 40/60 portfolio.
Investment Process:
- The portfolio balances its underlying assets to create the most diversified portfolio within a given investment universe. This is done by maximizing the diversification ratio, which is the sum of the weighted asset volatility divided by the portfolio volatility.
- For further information, please visit our Seeking Alpha blog or download our article “Modern Portfolio Theory 2.0 – The Most Diversified Portfolio” as pdf-file.
Favourable Market Environment:
- Low correlation between asset classes.
Challenging Market Environment:
- High correlation between asset classes.
Allocation Advice:
- The allocation of the portfolio is updated on the last Friday of every month.
Performance Calculation:
- The performance calculation is based on the assumption that a new allocation advice is executed at the closing price on that day. No rebalancing is made in between.
Benchmark:
- The benchmark is a balanced portfolio of 40% stocks Vanguard Total Stock Market ETF) and 60 % bonds (iShares US Aggregate Bond ETF).
Factsheet:
- The performance and risk figures are updated on a weekly basis. For further information please visit our FAQ page.
