WSC Inflation Proof Retirement Model Portfolio – Sample

Investment Objectives:

  • The WSC Inflation Proof Retirement Portfolio (IPRP) is designed to perform reasonably well during a high inflationary market environment.
  • The aim is to generate enhanced and stable returns above the average inflation rate and to minimize potential losses, even during times when the overall inflation expectations remain quite low.

Typical Investor:

  • For conservative investors at or near retirement, inflation can be the biggest threat, since many of them have converted much of their portfolio into bonds.
  • Fixed income investors searching for a strong alternative in a high inflationary market environment.

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 “The Most Diversified Inflation-Proof Retirement Portfolio!” as pdf-file.

Favourable Market Environment:

  • High inflationary market environment.
  • Low correlation between asset classes.

Challenging Market Environment:

  • Low inflationary 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:

  • 20% Dividend Stocks (DVY)
  • 20% Gold (GLD)
  • 60% TIPS (TIP)

Factsheet:

  • The performance and risk figures are updated on a weekly basis. For further information please visit our FAQ page.
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