2017 Performance Review
We are extremely optimistic for how our strategies are positioned to manage 2018.
Their competitive advantage over many traditional investment options are their disciplined, tactical nature. We describe them as an alternative to the traditional buy and hold approach. The traditional buy and hold style manages a portfolio with a static risk approach. We do not believe that economies are static so neither should your portfolio. The buy and hold approach can make sense from a theoretical standpoint but difficult to withstand during periods of market stress. Given the current low levels of volatility and valuations in the 99th percentile, we are concerned about future stresses in the markets and the impacts they might have on static risk investment styles.
2017 was a momentous year for global equity investors, clearly defying analyst expectations. Our internal investment strategies also did well, performing along the lines of what we would have expected with the benefit of hindsight. Our flagship strategy, the Core Equity Strategy, had a stellar year, returning 17.6% gross return² (16.4% net of maximum allowable 1.5% financial advisor fee³), easily outperforming its benchmark for the year. For descriptions of each strategy, see the appendix section at the end.
