By combining the strong historical return character of the momentum factor with global diversification and risk management, AAA portfolios deliver steady growth with specific risk targets and controlled maximum losses, regardless of economic or market environment.
PERFORMANCE AND INFORMATION – INSTITUTIONAL MANDATES
|Global Mandate||Investment Vehicle||Inception Date|
|ReSolve Global Tactical Equity (USD)||Separately Managed Account||Nov 2015|
The view that stocks should deliver higher returns than bonds over the long-run is a cornerstone of modern finance. Stocks are more susceptible to wild swings in value, so investors require a greater incentive to put their capital at risk. This extra incentive is the ‘equity risk premium’.
Given that stocks are wild in the intermediate term, but deliver higher returns in the long-run, investors with long time horizons might consider a larger strategic weight in equities. But which equity market should you choose? And how confident are you that you will stay disciplined through the inevitable 50% drawdowns?
The ReSolve Global Tactical Equity Strategy seeks to consistently rotate into the world’s strongest stock markets according to many measures of trend and momentum. The Strategy allocates between index ETFs tied to Canadian stocks, U.S. stocks, international stocks, and emerging market stocks. Where our proprietary statistical filter indicates an overwhelming probability that global equities are vulnerable to crash risk, the portfolio can move either partly or wholly into government bonds for ‘safe harbour’, preserving capital while waiting for the inevitable next bull market to begin.
Who is this strategy for?
Investors who are in the savings phase of their life, with high risk tolerance and time horizons in excess of 10 years might consider a higher strategic allocation to stocks. The ReSolve Global Tactical Equity Strategy provides active systematic exposure to domestic and global stock markets, with the opportunity for higher returns in the long-run, and lower expected drawdowns.