WSC All Weather Model Portfolio – Sample

Investment Objectives:

  • 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.
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