Portfolio Shield™ offers…
Higher Returns for Less Risk*
A Unique Investment Strategy
Portfolio Shield™ is a unique investment strategy designed to take risk when the equity markets are rising and reduce risk when the equity markets are falling.
Adapts to Changing Market Conditions
Portfolio Shield™ is a dynamic strategy that adapts to changing market conditions on a monthly basis. One the first trading day of each month, Portfolio Shield™ adjusts the portfolio based on the current market conditions.
During Bull markets, when stock prices are rising, Portfolio Shield™ will adjust the portfolio to take advantage of rising stock prices.
During Bear markets, when stock prices are falling, Portfolio Shield™ will take a defensive allocation by reducing its equity exposure to increase the portfolio’s allocation to bonds and cash.
A Simple Design
Portfolio Shield™ is a simple, easy-to-understand investment strategy that utilizes the S&P 500®, Nasdaq-100, the Russell 2000 and a Treasury bond fund to potentially deliver higher investment returns with less risk compared the S&P 500® over the past ten years, based on current and back-tested Morningstar® returns.
No Compromise on Returns
By investing in the top performing equity indices at all times, Portfolio Shield™ tends to rise with the broad stock market. Based on current and Morningstar® backtested returns, Portfolio Shield™ has outperformed the S&P 500 ten out of the past thirteen years, gross of advisory and transaction fees.
With Less Risk
Portfolio Shield™ has two unique features to reduce risk and volatility —
Every month the equity allocation is adjusted with a proprietary formula that weights more of the portfolio to the equity funds with lower volatility as measured by Standard Deviation.
At the same time, Portfolio Shield™ can add or remove the Treasury bond fund from the allocation to improve upside performance during Bull markets or to reduce downside risk during Bear markets or volatile periods. The decision to add or remove the Treasury bond fund from the allocation is based on a separate formula.
Why Is It Better
Most investment strategies available today were either developed decades ago or were designed to work under a specific set of conditions. Portfolio Shield™ was designed to work within the constructs of our monetary system and optimized to work in today’s financial markets.
How Does It Compare?
Portfolio shield takes the best aspects of low-cost index investing and incorporates a unique way to reduce risk when equity markets are falling.
When compared to a traditional diversified portfolio, a volatility-controlled portfolio or a “robot”advisory portfolio, Portfolio Shield’s unique design and hedging strategy allows Portfolio Shield™ to generate higher returns for less risk over a 10-year period when compared to investing in the S&P 500, based on current and backtested returns by Morningstar®.
How It Works
The strategy is designed to allocate itself to the S&P 500®, Nasdaq-100, and Russell 2000 when the equity markets are rising. When the equity markets slow down or start to correct, the portfolio adjusts to adds a long-term U.S. Treasury fund to the allocation.
The Treasury fund acts as a brake to reduce the downside risk of the portfolio when stocks go down. This works because when stocks fall, bonds typically rise. The bond allocation has the potential to offset a large portion of the fall in the equity allocation.
When the six-month cumulative return of each of the three equity funds is higher than the six-month cumulative return bond fund, the portfolio adjusts the allocation back to the three equity funds.
Why It Works
Portfolio Shield™ was designed around our monetary system, along with the business and credit cycles. With a deep understanding of how the stock and bond market work inside our monetary system, the strategy is able to adjust between both as economic conditions change.
Easy to Understand Statements
Due to the limited number of investments inside the allocation, monthly statements are easy to understand. When Portfolio Shield™ is starting to hedge against a Bear market, the strategy will add a U.S. Treasury bond fund to the allocation.
The weighting of the U.S. Treasury bond fund increases as equity market risks increase and decreases as equity market risks decrease. By monitoring the addition, deletion, and size of the of the U.S. Treasury bond fund, investors in Portfolio Shield™ will easily be able to determine when the strategy is reducing risk.
With a limited number of potential investments in the allocation, investors will be able to easily determine how their portfolio is allocated.
Validated by Morningstar®
All current and back-tested returns, along with all of the risk analytics are validated by Morningstar®. Each month Morningstar® provides an updated Investment Detail Report on the Portfolio Shield™ strategy. Morningstar® is the premier provider of data and analytics for the financial services industry.
Are you more concerned about missing out on the next Bull market or taking a big loss during the next Bear market?
Sign up today to receive the latest Morningstar® Investment Detail Report for Portfolio Shield™ along with a video explaining how to read the report. Each month you will receive the latest Investment Detail Report, so you can see first hand how Portfolio Shield™ can work for you. When you’re ready to make the switch, we’ll make moving your accounts to Portfolio Shield™ as easy as possible.
*Less risk is measured by Morningstar® current and back-tested risk statistics over a 3-, 5-, 10-, and 15-year period, including, but not limited to Beta, Sharpe Ratio, and Standard Deviation.
The hypothetical back-tested information provided herein is illustrative only and derived from a proprietary Model Strategy designed with the benefit of hindsight based on certain data (which may or may not correspond with the data that someone else would use to back-test) and, market or economic condition assumptions, and estimates (not all of which may be specified herein and which are subject to change without notice). The hypothetical returns are (i) gross of annual advisory fee of 1%, (ii) do not take index fees or transaction costs into account, and (iii) do not reflect the reinvestment of dividends or other earnings. Investing involves risk including the possible loss of principal. Atlas Financial Advisors, Inc. makes no assurance that the Model Strategy will achieve its investment objectives.