Document Type

Investment Portfolio

Publication Date

2016

Abstract

The most notable aspect of our strategy is an increase in bond holdings to 18% — the top of the range permitted by our investment policy statement. This defensive position assumes bonds will be low risk in a year of gently rising interest rates and because we see little upside in the stock market. For our tactical allocation, we added sector ETFs to each of our sectors to ensure diversification within sectors and limited the individual names to three per sector, allowing for more selectivity and in-depth research. We have tilted the portfolio towards consumer discretionary, consumer staples and telecommunications, last year’s best performing sectors, because they are favored in less than robust economies.

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