Actavest Balanced Plus Allocation Solution

Retire well with a smart, all-in-one, peace of mind investment solution.

Learn how it works.

Prepare to retire well

Ensuring you can retire well is a two-step process:

1. You have to prepare to make sufficient contributions to your retirement savings account.

2. Those savings need to be invested wisely to provide a real return in excess of inflation. 

We can help with step number 2.

Let’s do this together!

Analyze your choices

Start by downloading our retirement planning spreadsheet. Easily visualize scenarios to help you achieve a balance between the savings you set aside in your working years and your expected retirement lifestyle.

The spreadsheet includes our target real return expectation for our investment solution. Next, learn how our solution works and what makes it smart - we show you the evidence.

Implement smartly

When you are ready, we can implement our solution in your existing account for a low annual fee of 0.35% per year.

You can get back to living your life, knowing you have a professionally managed peace-of-mind retirement solution.

You still have 24/7 visibility of your account so check in anytime to see how you are doing.

Strategy basics

We’ve taken the classic 60/40 solution and made it more intelligently adaptive to the risk environment. Our solution uses a tested, rules-based process to adjust your asset allocations using our proprietary, real-time, recession probability model. The goal is to outperform a traditional balanced 60/40 benchmark in all environments with less volatility and improved downside protection.

 

Intelligently adaptive asset allocation adjusts to reflect recession probability.

If the recession probability is low, we increase exposure to stocks and reduce exposure to bonds. As the recession probability increases, we increase bond exposure and reduce stock exposure. 

 

 

 

Avoiding large drawdowns makes a big difference¹

Lots of strategies claim to be focussed on insulating you from drawdowns.

We actually show you our process.

 

One strategy - four risk models to choose from. Easily transition as your goals change. You control your own glide path.

Aggressive

Baseline equity allocation = 90%

Moderately Aggressive

Baseline equity allocation = 80%

Moderately Conservative

Baseline equity allocation = 70%

Conservative

Baseline equity allocation = 60%

 

Implemented in your account, in your name, at your trusted custodian.

 

 

 

You provide us with a Limited Power of Attorney (LPOA) to implement the strategy for you as a fiduciary.

You have 24/7 visibility. 

Consider the benefits

If you want an investment solution that is:

based on evidence

√ transparent and understandable

√ implemented according to tested predefined rules

√ held at your trusted custodian

√ invested using 4 low-cost highly liquid ETFs

√ flexible to your changing risk levels

√ delivered for a low-cost fee

√ cancellable at your option any time

√ expected to give you better results with less drawdown stress,

then please leave us your details and we'll follow up to schedule a conversation. 

We're sure that if you take the time to review our research below and understand how the strategy works, that you will agree it is a sensible solution to help you achieve your retirement plan.

Understand the research and logic behind the strategy 

Conventional balanced funds (60/40) divide the portfolio between stocks (higher return, higher risk) and bonds (lower return, lower risk). They are static allocations, which rebalance occasionally, but do not actively consider the risk environment.

We have dissected the risk environment more carefully and observe that there are smaller, shorter-duration risks which are unpredictable and not worth trying to navigate, but the larger, longer-duration risks (recessions) are more predictable and navigable.

Our asset allocation model starts with the same basic framework as a traditional balanced fund, but makes allocation adjustments for longer-duration risks, using our proprietary, real-time, recession probability model. 

If the probability of being in a recession is very low, we increase exposure to stocks and reduce exposure to bonds. As the recession probability increases, we increase our exposure to bonds and reduce our exposure to stocks. The portfolio is rebalanced whenever allocations exceed a drift tolerance.

These adjustments result in a meaningful increase in returns and a reduction in risk, and with time and compounding, make a significant difference to the value of your retirement savings.


Watch our 15-minute PowerPoint presentation and/or download our White Paper for a detailed explanation of how it works. We walk you through the logic and evidence behind this solution.  We want you to understand how your savings are being invested.

View our PowerPoint presentation

Download our White Paper

 

Evidence-Based

 Our process is based on rational evidence, supported by the data, and clearly explained. 


Benefit: Understand how your money is being managed and have peace of mind in the process.

 

Systematic

Our rules-based model updates daily and, if necessary, your allocations are modified. 


Benefit: Investing according to a set of tested predefined rules eliminates emotional investing.

√  

Low Fees 

Total solution cost is about 0.40% per year and includes our advisory fee of 0.35% per year. 


Benefit: More of your money stays invested in the product to compound and grow over time.

Some of our asset allocation Insights we have written about over the years

Essential To Understand This If You Are A 60/40 Investor

...  Read full article

Typical Millennials Should Allocate At Least 25% Of Their Portfolio To This Specific Asset Class

...  Read full article

Dissecting The Holy Grail Of Market Timing

 

...  Read full article

The Passive Indexing Pain Point And How To Reduce It

...  Read full article

Adjusting Asset Allocations In A Balanced Fund Using A Real-Time Evidence-Based Recession Probability Model

 

... Read full article

1. We expect smaller outperformance in years when the equity market rises and more significant outperformance in years when the equity market declines. Disclaimer: This target goal and the example results shown in the chart are based upon the results obtained by testing our rules-based process over a 30-year period starting in 1986, however, there can be no assurance that this strategy will be able to achieve its objectives or similar returns in the future (see our White Paper for our process and detailed performance data by year and risk level).

Our service to you

Our core value proposition is our ability to research and design unique value-add investment strategies. Designing and testing rules-based solutions for ten years, we understand the pitfalls to avoid to ensure a robust strategy that has a chance of being successful over the long term.

Choosing an evidence-based and rules-based process allows you to understand your portfolio allocations at all times. We don’t expect you to entrust us with your retirement portfolio without first understanding the process and buying into the logic. We lay out our process and rules in simple terms so you can understand it. During uncertain times, you can take comfort knowing that the evidence is on your side, which is better than investing based on the sentiment of the day.

We implement the strategy in your separate account in a fiduciary capacity, according to the rules we have developed and tested. Our annual fee of 0.35% is low in both absolute terms and relative to the value-add we expect to deliver. We are always accessible if you have questions, need to change your risk preference or make withdrawals.