Capital Preservation Focus

Conservative Growth

Consistent capital growth with low risk and capital preservation. Designed to outperform inflation while generating stable positive returns over shorter market cycles.

Investment Objective

Primary Goal

Preserve capital in nominal and real terms with low level of risk. The strategy seeks to outperform the pace of general inflation consistently while generating positive returns over a market cycle of two to three years.

8-9%
Annualized Return Target
Up to 3 Years
Recommended Time Horizon
Low Risk
Risk Profile

Secondary Objective

Limit drawdowns during adverse market conditions and achieve positive stable growth with low volatility. Expectation of consistent performance even over short-term horizons.

Investment Methodology

Quality Factor Focus

Portfolio constructed using quality as a factor to ensure sustained performance over at least 12 months. Focuses on US Large cap stocks from S&P 500 constituents for liquidity and quality.

Flexible Positioning

Dynamic allocation between directional market exposure and hedge positions based on proprietary market model signals, reviewed monthly.

Annual Rebalancing

Disciplined annual rebalancing with monthly reviews of market directional and hedge positions to maintain alignment with risk objectives.

Consistent Performance

Strategy designed to deliver consistent positive returns with expectation of achieving goals even in short-term time horizons.

Risk Profile

Low Risk Profile

This portfolio is designed for conservative investors prioritizing capital preservation and consistent returns. Lower volatility than the general market with focus on stability.

Volatility Expectations

  • Annualized standard deviation: 5-10%
  • Lower than S&P 500 index
  • Reflects conservative approach

Expected Drawdowns

  • Potential drawdowns: 10-15% during severe stress
  • Hedging strategies minimize downside
  • Model-driven hedge activation

Portfolio Allocation

Target allocation reviewed annually with market directional and hedge positions adjusted monthly:

US Large Cap Equity Stocks50%
Directional Market Exposure (ETFs)0% to 50%
Hedge (via Inverse ETFs)0% to 50%

Note: Flexible allocation allows strategy to adapt to market conditions while maintaining low-risk profile through quality stock selection and tactical hedging.

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