Jental bank monetary policy has been accommodative for years, but with the Fed raising benchmark interest rates, investors will need to adjust their mindset – and their portfolios – to the realities of a market environment. evolving.
In the next webcast, What rising rates and a changing economic landscape mean for your portfolio, Matthew Bartolini, Head of SPDR® Americas Research, State Street Global Advisors; Eric Biegeleisen, Partner, Deputy Chief Investment Officer, 3EDGE Asset Management; and Greg Ellston, Chief Investment Officer – Asset Allocation, Confluence Investment Management, will explore what rate hikes mean for the economy and outline strategies financial advisors can use to adjust their clients’ portfolios.
For example, 3EDGE Asset Management offers a suite of investment solutions for financial advisors, including the 3EDGE Income Plus strategy, which seeks income opportunities around the world and across a variety of asset classes. As shown below, the strategy invests in traditional equities and fixed income sources and non-traditional income sources to provide diversification and potentially higher sources of income. While the strategy seeks attractive return opportunities, it pays close attention to risk by making tactical shifts based on our proprietary 3EDGE Global Capital Markets model. Investment exposure is obtained primarily through the use of exchange-traded funds.
Additionally, the 3EDGE Total Return Strategy is a globally diversified, multi-asset portfolio invested in a wide variety of asset classes and geographies. Investment exposure is obtained primarily through the use of exchange-traded index funds. The investment objective is to generate long-term capital appreciation and attractive risk-adjusted returns over full market cycles. The TR strategy may be suitable for investors who are more focused on long-term capital appreciation and who have a time horizon of more than three years, at least for this component of an investor’s overall liquid assets.
Confluence Investment Management LLC also offers a suite of ETF model portfolio strategies, such as the Income Strategy, which primarily focuses on reliable income and is suitable as a complementary strategy for investors in the distribution phase of their investments. The majority of its allocation is in fixed income asset classes, with the core being a target maturity ETF ladder, with each of the next ten years representing a fixed percentage of assets. A small portion of the portfolio may include real estate, stocks and commodities to contribute to growth potential and diversification benefits. Where applicable, the profile is similar to a diversified bond portfolio with a small portion allocated to equities.
Confluence’s Income with Growth strategy is geared towards reliable income, moderate volatility, long-term growth and capital preservation. Although the portfolio typically has the majority of its allocation in fixed income asset classes, a smaller portion may include real estate, stocks and commodities. These asset classes offer growth potential as well as diversification benefits. The profile is similar to that of a diversified bond portfolio alongside a lower proportion of equities.
Additionally, Confluence’s growth and revenue strategy combines growth and revenue objectives with a greater emphasis on growth. The growth allocation can include equity asset classes ranging from small caps to large caps, with domestic and international equities. Commodities can be used for total return as well as diversification benefits. Fixed income and real estate allocations will normally form the basis for pursuing income goals. The profile is similar to a portfolio with a mix of stocks and bonds.
Financial advisors who want to learn more about rising rate portfolio strategies can register for the Tuesday, May 10 webcast here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.