Beginning in the fourth quarter of 2019, we officially introduced our Model Portfolios which are designed to mirror the different respective components of each client portfolio and deconstruct the drivers of return for various functional risk category groups.
This helps us to become more informed risk managers internally as well as helping us with our external communication to clients regarding portfolio performance – in other words, what worked well and perhaps less so, which then drives second-level analysis of why something occurred (was it expected, was it the result of something we missed, was it something that changed or was it a random outcome?). While not every client will have the same holdings in the same percentages as the Model Portfolios, and there is some level of uniqueness to each client portfolio, each client’s holdings within the “Global Public Equity” category should more or less track the performance and risk of its respective Model Portfolio. It is our intention to maintain these Model Portfolios internally as an index with a set of rules, features, and objectives, for maintaining, tracking, and reporting on their performance in these quarterly commentaries.
Here are the respective Model Portfolios we are maintaining and tracking going forward:
Additionally, we will be maintaining the AP-CIO Balanced Risk Portfolio, which represents an all-encompassing multi-asset client portfolio proxy for a typical client having a risk profile suggestive of a long-term asset allocation of 60% equities and 40% fixed income.
As of June 30, 2020, the AP-CIO Balanced Risked Profile held the following constituents:
AP-CIO Model Portfolio Performance Summary:
Returns for periods ended June 31, 2020
*Since inception return from October 1, 2019.
**Standard deviation of monthly returns and beta with respect to the S&P 500 Index (in USD) based on a three year back test from July 1, 2017 to June 30, 2020.
Download the complete Second Quarter 2020 Model Portfolios:
The firm’s model portfolios were established on October 1, 2019. The model portfolios are hypothetical investment portfolios used to showcase how we believe asset allocation may be used within the context of a client portfolio. The models also provide a basis with which to measure the quality of our advice and the effectiveness of our disciplined investment strategy. However, implementation assumptions (which may include but are not limited to the timing and diligence with which the portfolio is rebalanced, the execution price for securities transactions, and any trading and account-related costs, fees, or commissions) have been made when calculating the model returns that may be difficult or impossible for any investor to exactly replicate the model portfolios. For this reason, there is no expectation that the model returns will replicate the actual performance of any client following the same guided portfolio strategy. Performance figures are net of fund level expenses and fees but do not include any allowance for Anchor Pacific’s Investment Management Fees. Past performance is not indicative of future performance.
Anchor Pacific Investment Management Corp. (“Anchor Pacific”) is a Vancouver, BC-based portfolio management firm, which leverages process, technology, and infrastructure to democratize the process of managing endowment and pension style investment portfolios to deliver innovative, high-touch, and transparent investment programs across the full spectrum of asset owners and investment consumers.
To learn more about how Anchor Pacific can help you shelter, protect, and grow your money, contact us at 604-336-9080 or firstname.lastname@example.org