The Investment Policy for MPBWM is divided into two basic themes for managing the Global Stock and Bond Markets:
The Risk Managed Approach is to protect against falling Markets
We use Institutional Mutual funds and Separately Managed Accounts. These managers use various processes to manage risk, such as Hedged Equities (using Put options against a portfolio of US Stocks or Indexes), Momentum Strategies to shift portfolios to defensive positions (Cash), Unconstrained Bond Funds, Long/Short funds, Global Macro managers (Global Allocations based on the Macro Economic drivers), and Momentum-Driven Sector Rotation Strategies.
The Market Participation Approachis based on Modern Portfolio Theory (MPT), which won the Nobel Prize in Economics in 1990
This Approach is based on a globally diversified portfolio of Stock and Bond Exchange Traded Funds (ETF). Through Computer analysis from the research generated by the Modern Portfolio Theory (MPT), the Long-Term risks and returns of various portfolios can be defined and tailored to the individual investor. The object is to capture Market Returns.
Also,when appropriate...We employ the use of Alternative Investments, such as Non-Traded REITS, purchased both when issued and on the secondary markets, Oil & Gas investments and other alternatives to the traded markets when opportunistic
Determining the allocation between Risk Managers and Market Participation is based on each investors Risk Tolerance, Stage in Life, Required Returns and Market Conditions. For an investor approaching retirement or in retirement, we tend to allocate more to the Risk Managers. Retiring investors relying on their portfolios for income may not be able to financially survive a major market crash.
***Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses, or sales charges. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should be construed as an offer or solicitation for the purchase or sale of any security. References to specific securities, investment programs or funds are for illustrative purposes only and are not intended to be, and should not be interpreted as recommendations to purchase or sell such securities.***
