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The Global Balanced Strategy is a global allocation strategy that dynamically balances a portfolio of global asset classes based on their structural risk and return characteristics - optimizing performance and risk management across major economic regimes.
At its core, the Tone Capital Global Balanced Strategy seeks to be a true "All-Weather" portfolio, using “quant-based” methods to continually balance portfolio risk exposures, employing real-time fundamental data to tilt the portfolio as economic trends evolve. By intelligently balancing portfolio risks and economic exposures instead of capital allocations, investors can improve the stability of their portfolios over long-term investment horizons.
Our economic recession forecasting model uses a diverse basket of economic leading indicators and market-based explanatory variables that each exhibit predictive power in identifying early warning signs of an impending U.S. recession.
Using time-tested economic prediction models, we can modestly tilt portfolio risk exposures to enhance expected performance. No “on or off ” market timing...but intelligent tactical tilts based on changing economic conditions.
According to industry research, asset allocation accounts for 88% of investment returns in a diversified portfolio (Source: Vanguard). Tone Capital’s Global Balanced Strategy adjusts investment allocations per proprietary factors based on durable investment themes, providing a dynamic solution designed to provide stability in all market and economic environments. A monthly rebalance frequency is employed, seeking to capture the nuance of macro shifts.