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Paritas Global Wealth Strategy

A balanced risk management approach – avoiding large drawdowns – ultimately delivers long-term outperformance and superior risk adjusted returns.

Lower risk doesn’t mean settling for lower returns.

Better Outcomes from Balanced Risk

A True All-Weather Portfolio

Taking Smart Risk

There is a time to play defense and a time to play offense. We use risk to evaluate when markets provide an opportunity for growth or when protection is required. When the environment is favorable, we adjust portfolio allocations to capitalize and grow wealth.

Protection When Clients Need It

Our adaptive portfolio management process allows for action in times of extreme market volatility. The Global Wealth Strategy portfolio experienced 52% less of a drawdown than the S&P 500 Total Return Index, helping to reduce fear while keeping clients on track and invested.

The Last Big Test

Fourth Quarter 2018

Source: FactSet. The historical performance of the index cited is provided to illustrate market trends. It is not possible to invest directly in an index. Index performance does not take into account fees and expenses. Past performance is no guarantee of future results. GWS performance is net of fees. A pro forma 0.60% management fee was applied to the gross performance of the GWS simulation to arrive at net performance.

A More Consistent Approach to Building and Protecting Wealth

GWS investors experienced positive returns, even through significant market volatility1

GWS has produced consistently positive absolute returns over different rolling time periods; which can give clients peace of mind. Its consistency helps achieve competitive returns in a low yield environment while minimizing volatility.

Paritas’ Global Wealth Strategy helps overcome many different investor challenges

By utilizing a disciplined investment process, GWS adapts to changing market conditions which helps to protect against last drawdowns and allows investors to remain in the markets without fear or panic. This type of smoothed return stream can help to ease retirement concerns.

Embracing the power of compounding and winning by not losing

We believe that lower risk does not have to mean lower return. A smoother investment experience increases the potential for higher long-term risk-adjusted returns by continually compounding at a more consistent rate.

1For the period of strategy inception (7/1/2015) to January 31, 2020. GWS performance is net of fees. A pro forma 0.60% management fee was applied to the gross performance of GWS to arrive at net performance. Past performance is no guarantee of future results.

A Repeatable Investment Process

Our quantitative investment process is designed to deliver consistently high risk-adjusted returns

  • Step 1. Quantify

    Calculate the risk that each asset contributes to the portfolio

  • Step 2. Optimize

    Determine the appropriate amount of capital for each asset to achieve a balanced target risk level

  • Step 3. Allocate

    Rebalance the assets in the portfolio to match the new target allocations

Risk Management Redefined

We construct a globally diversified portfolio that is invested across asset classes and segments.

  • Risk is balanced evenly among the four major asset classes.
  • Asset classes are broken down into asset segments which are further equally divided.
  • Capital is allocated to maintain a constant risk target, rather than static capital targets.

Asset allocation/diversification does not guarantee a profit or eliminate the risk of loss. Past performance is not a guarantee of future results.

Why Focus On Risk?

Risk defines the outcome for most investors’ portfolios

Portfolio wealth must be managed to withstand unexpected market shocks. Therefore, risk must be managed effectively through careful analysis and quantification.

Clients are focused on protecting losses and so are we

We define risk as the probability of a negative outcome.

Risk can be quantified

Traditionally, investors have attempted to predict the unpredictable and focused on forecasting events and results. We analyze market data to construct optimized portfolios for the current risk environment.

Learn More About Balanced Risk

Systematic Rebalancing Adds Value

Risk is constantly changing, portfolios should be adaptive

The success of the Global Wealth Strategy is a function of our ability to reallocate capital in line with our proprietary research on market risk.

Monitoring Risk 24/7

We monitor our portfolios to ensure that the risk targets have been met and that each account is optimized for the current market environment.

Tax-efficient trading

Our trading process is tax-aware; our goal is to provide investors with high after-tax returns.

The Best of All Worlds

Actively managed SMA using passive ETFs

We’ve diligently researched how to construct a global balanced risk portfolio with an active top-down strategy combined with highly-liquid passive ETF investments.

Pure asset class exposure with minimal overlap

GWS invests in “best fit” asset class indices. The portfolio has minimal overlap in its holdings, unlike the composition of many peer group competitors.

Low cost and highly effective

Every ETF holding is scrutinized for quality and cost. The GWS “all weather” portfolio is a solid long-term core holding for most risk-averse investors.

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