Equity Compass Portfolios & Products
Tactical Core Equity Portfolio

Objective

Risk-managed equity portfolio that seeks to achieve returns in excess of the stock market returns while minimizing volatility

Highlights

  • Designed to be the foundation of an investor’s overall portfolio to pursue long-term financial objectives
  • Tactically allocated equity component (using Equity Risk Management Strategy) seeks to provide downside protection and volatility control without curtailing upside potential
  • Portfolio is diversified with active and passive investment approaches, domestic and international stocks, various investment styles (growth/value), and market-capitalization segments (large/mid/small)
  • The actively managed U.S. equity component (EquityCompass All-Cap Blend) seeks to outperform by opportunistic stock selection and portfolio tactics
  • Adheres to a research-based, rules-driven investment process implemented using quantitative models to impose discipline and consistency to investment decisions
  • This strategy may invest in inverse ETFs

Portfolio Allocation

Investment Process

1) Portfolio Allocation

  • 67% of TCE is fully invested equity and 33% is tactically allocated by investing in the Equity Risk Management Strategy that can shift from fully invested if market conditions are deemed unfavorable
  • Combines active strategies that seek to outperform with passive strategies that focus on reliably capturing market returns
  • Diversified to help reduce specific stock or sector risk

2) Portfolio Construction

  • Domestic and international stock exposure seeks to provide favorable risk/reward
  • The actively managed All-Cap Blend Portfolio represents the U.S. equity portion
  • Equal-weight positions in 50 stocks across 10 economic sectors to provide broad diversification and lower volatility
  • Uses EquityCompass’ quantitative models to identify stocks with favorable relative value, price momentum, quality, and mispriced as a result of investor over/underreaction