© 2019. DynamicFrameworks
MODEL PORTFOLIO STRATEGY
The investment philosophy across our model portfolio strategies is to minimise drawdowns and maximise risk-adjusted returns, which allows for the faster compounding of capital in various market environments. Our model portfolio strategy encompasses various model portfolios, which caters for five distinct risk-profiles ranging from the very cautious investor to very aggressive investor:
- Conservative – Intended for investors who are risk-adverse and want returns which are likely to be superior to cash over the medium to long term.
- Cautious Portfolio – Intended for investors who are prepared to take on a small degree of risk.
- Moderate Portfolio – Intended for investors who are generally equally concerned about possible losses as well as possible gains.
- Adventurous Portfolio – Intended for investors who place greater importance on capital growth compared to capital loss.
- Aggressive Portfolio – Intended for investors who are more concerned that their investment gains purchasing power over time, rather than their portfolio generating negative returns.
A key risk to a client’s portfolio is the erosion and the purchasing power of capital. Determining portfolio risk based solely on volatility is misleading and can be detrimental to clients achieving real returns on their investment portfolio. Therefore, all the model portfolio strategies focus on risk-adjusted returns.
Performances are represented as cumulative and are net of OFC (on-going fund charge) fees. These are for reference only and should not be relied upon as accurate. Specific investor objectives will be assessed and suitability of the investment will be ensured when providing investment advice. Past performance figures prior to the investment inception have been simulated using the actual historical performance of the model portfolio strategy’s underlying investments, which are weighted according to the portfolio’s targeted exposure to these assets. Specific investor objectives will be assessed and suitability of the investment will be ensured when providing investment advice. Past performance is no guide to future 6 performance. The value of holdings may fall as well as rise. The estimated weightings presented are for the Moderate Portfolio