Portfolio Analyzer

Matching Asset Mix to Your Risk Preference

Explore how tactical high yield strategies have improved portfolio performance and Sharpe ratio based on an investor’s risk preference.

The above portfolios are composed by blending three indexes in various combinations, showing different scenarios over the period of August 30th, 2007 (inception of the HYTREND index) to December, 31, 2019. These returns are to indexes, and do not include management fees of products that would follow such indexes. The 2007 annual returns reflect the partial period of August 30th, 2007 to the end of the year.

  • Mitigator moves 20% of the base scenario equity allocation to HYTREND, seeking meaningful reduction of portfolio drawdown. (i.e. 60/40 stocks and bonds becomes 40/40/20 stocks, bonds, and high yield trend following)
  • Diversifier takes 10% out of both equity and fixed income to allocate to HYTREND (i.e. 60/40 stocks and bonds becomes 50/30/20 stocks, bonds, and high yield trend following).
  • Booster seeks improvement of fixed income by moving 20% out of fixed income, instead allocating to HYTREND (i.e. 60/40 stocks and bonds becomes 60/20/20 stocks, bonds, and high yield trend following).

Scenario Overview:

HYTREND is a trend following high yield ETF index, with more information available from the index disseminator, Solactive AG. Equity allocation is represented by the Morningstar US Core Index, which tracks the total return performance of stocks that exhibit average ‘growth’ and ‘value’ characteristics as determined by Morningstar’s proprietary index methodology. FI (Fixed Income) allocation is represented by the Bloomberg Barclays US Treasury 7-10 Year Index, which measures total return of US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury with 7-9.9999 years to maturity.

Sharpe Ratio (noun) The average return minus the risk-free return divided by the standard deviation of return on an investment.

Related Perspectives






STAY CONNECTED

Mutual Funds involve risk including the possible loss of principal. Investors should carefully consider the investment objectives, risks, charges and expenses of the funds managed by Counterpoint Funds. This and other important information about the funds is available in their prospectuses, which can be obtained at counterpointfunds.com or by calling 844-273-8637. The prospectuses should be read carefully before investing. The Counterpoint Funds fund family is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. To reach the Counterpoint sales team, please refer to our contact page.

5516-NLD-09/01/2021

 

 

Thank you!

We’ve received your request for the featured event collateral. A Counterpoint Funds team member will be in touch shortly.

Subscribe to stay up to date on and receive our monthly perspective.

Thank you!

We’ve received your meeting request and a Counterpoint Funds team member will be in touch shortly.

Subscribe to stay up to date on and receive our monthly perspective.

Thank you!

We’ve received your event registration request and will be in touch shortly.

Subscribe to stay up to date on Counterpoint Funds and receive our monthly perspective.

Thank you!

We have received your application and look forward to reviewing your qualifications for the role. If your application seems like a good fit, we will contact you to discuss next steps.

Thank you again for your application and interest in joining the Counterpoint team!

Thank you!

We’ve received your message. A Counterpoint Funds team member will contact you soon.

Subscribe to stay up to date and receive our monthly perspective.