All Weather US - Unleveraged

Why this Kristal?
The All Weather portfolio philosophy is to create a portfolio that is able to generate a return equivalent or in excess of broad GDP growth over an extended period of time. It brings together investment in 3 main Asset Classes: Fixed Income, Equity and Commodity. The weightings between these 3 asset classes determine the success of the strategy. A broad guidance that has been tested over time is an allocation of ca. 55% to Fixed Income split between medium and longer term bonds, 30% Equities and 15% commodities.

The portfolio will perform based on the assumed correlation between different asset classes. Strong economic growth will support equities and commodities but at the expense of fixed income. In a recession, rates trend lower and since lower rates mean higher prices for bonds, the gains of this section of the portfolio will mitigate losses from a slump in equities. In an inflationary scenario, which is hurtful for both equity and fixed income, the commodity allocation will act as a buffer to negative impacts from both markets.

We have further refined our strategy by including inflation linked bonds as part of the allocation in the fixed income space.

Recommended for: Ideal for investors looking to gain a diversified exposure to various asset classes with the objective of balanced growth.

Geographic Focus: US

Market Tier Exposure: Developed Markets

Asset Class: Fixed Income, Equity, Commodity

When to buy?
The Kristal provides consistent performance through most market conditions. It is therefore ideal in times of economic uncertainties. Due to the growth component of equities, the Kristal is also placed well for regular periodic investments.

How is this Kristal Managed?

The Kristal is regularly rebalanced to maintain targeted asset allocations:

  • 55% Fixed income (10% Inflation linked treasuries, 30% Long Duration Bonds, 15% 3-7yr duration bonds)
  • 30% Equity (Broad US Market ETF, e.g. S&P 500, Total Stock market ETF, etc)
  • 15% Commodities (Gold, and/or broad commodity tracking ETF)

Fluctuations of up to 10% between each of the asset classes are allowed.

Reference:
The Kristal follows the investment philosophy of Ray Dalio, the founder of Bridgewater Associates managing about $160 billion for approximately 350 of the largest and most sophisticated global institutional clients including public and corporate pension funds, university endowments, charitable foundations, supranational agencies, sovereign wealth funds, and central banks.
4 Factors Ray Dalio uses to construct his All-Weather portfolio

medium risk
18.49%
10.23%
$

Katalyst

Why this Kristal?
Katalyst is a genetic algorithmic strategy that takes a tactical approach to portfolio construction based on the prevailing market conditions. The algorithm assesses a universe of diverse ETFs for various risk and return parameters. The objective of the strategy is to optimise the utility derived from higher returns subject to volatility constraints. The strategy is overseen by an experienced investment committee that reviews the performance of the Kristal on a regular basis and assesses the appropriateness of the risk constraint in any given market scenario. Targeted asset allocation between Fixed Income and Equity is 40-60 with a 15% tolerance depending on Algo inputs

Once the asset allocation is obtained, Katalyst invests to take tactical positions at a more targeted level than traditional style-based investing for up to 50% of the portfolio. It enables investors to acquire a low-cost exposure to popular, growing sectors like technology, healthcare, industrials, consumer discretionary that have been characterised by solid risk-adjusted returns. To reap the benefit of diversification, Katalyst also takes some exposure in emerging markets, while any remaining cash is kept invested in short term US treasuries.

Recommended for: Ideal for medium-risk profile investors looking for an actively managed strategy that delivers growth via capital appreciation.

Geographic Focus: Global

Market Tier Exposure: Developed and Emerging Markets

Asset Class: Equity, Fixed Income, Commodity

Sector:Diverse

When to buy?
The Kristal performs best in a stable and growing economic environment.

How is this Kristal Managed?
The strategy is dynamically rebalanced on a monthly basis with discretionary oversight of an experienced investment committee. Sectors are carefully chosen using an algorithm in order to deliver optimal risk-adjusted returns based on a medium-risk growth portfolio. Individual allocation within an asset class is further driven by model-driven discretionary tactical trades.

Reference:
Genetic algorithm is a concept that is inspired by Charles Darwin’s theory of the process of natural selection. Such algorithms imitate natural biological processes like mutation, inheritance, crossover and selection. Genetic algorithms are especially good at solving optimisation problems. This makes them highly applicable in the field of finance. They can solve the problem of portfolio rebalancing optimization efficiently.
Learn more about Genetic Algorithm

Autopilot Secure

This Kristal is suitable for an investor with a low risk profile. Mr. X is concerned about large draw down losses in his portfolio but yet aims to achieve a steady return above the risk free rate of return. His Investment horizon is about 5 years. He is happy with returns between +15% and -8% on her portfolio, depending on the market environment.

Overview:
The AutoPilot Kristals are 100% genetic algorithm based Kristals with regular rebalancing. This Kristal allows investors to use Algo based investments that are monitored on an ongoing basis and rebalanced through a rules driven approach, without having to lift a finger. Our genetic algorithm has produced superior backtest results compared to conventional equity and fixed income investments. It removes the human element of emotion to drive your investment decisions, which has been in many portfolios the biggest inhibitor of long term sustained performance.

Recommended for:
This strategy is recommended for Investors who prefer a hands off approach while enjoying the benefits of a fully managed portfolio.
This Kristal selects instruments from our entire investable universe of fixed income, equity and commodity ETFs. The strategy is rules based, and for diversification purposes the Algorithm may select international ETFs.

The Kristal is monitored by our IC on an ongoing basis, and rebalanced at a minimum once a quarter based on the latest Algo results. If there are material changes to our Algo parameters, we are allowed to rebalance the Kristal within the quarter.

How did we identify this Kristal:
Assets are carefully chosen by an algorithm in order to deliver to investors a wide range of exposures within the sector. The strategy is rebalanced every year, with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far. Dynamic rebalancing also means that the strategy will automatically adjust its risk profile based on the performance till date.

medium risk
18%
$

Autopilot Growth

This Kristal is suitable for an investor with a high risk appetite and tolerance. Mrs. Y has a longer term investment horizon of around 5 years and she is willing to accept a higher risk of losses in exchange for a targeted return which exceeds the risk free rate of return by a large margin. Mrs. Y would be happy with returns in the range of +25% and -15%.

Overview:
The AutoPilot Kristals are 100% genetic algorithm based Kristals with regular rebalancing. This Kristal allows investors to use Algo based investments that are monitored on an ongoing basis and rebalanced through a rules driven approach, without having to lift a finger. Our genetic algorithm has produced superior backtest results compared to conventional equity and fixed income investments. It removes the human element of emotion to drive your investment decisions, which has been in many portfolios the biggest inhibitor of long term sustained performance.

Recommended for:
This strategy is recommended for Investors who prefer a hands off approach while enjoying the benefits of a fully managed portfolio.

This Kristal selects instruments from our entire investable universe of fixed income, equity and commodity ETFs. The strategy is rules based, and for diversification purposes the Algorithm may select international ETFs.

The Kristal is monitored by our IC on an ongoing basis, and rebalanced at a minimum once a quarter based on the latest Algo results. If there are material changes to our Algo parameters, we are allowed to rebalance the Kristal within the quarter.

How did we identify this Kristal:
Assets are carefully chosen by an algorithm in order to deliver to investors a wide range of exposures within the sector. The strategy is rebalanced every year, with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far. Dynamic rebalancing also means that the strategy will automatically adjust its risk profile based on the performance till date.

medium risk
17.87%
$