Greetings!
Strategy Highlight: Bond/Currency Allocation
GMO's Jeremy Grantham and others are calling for US & Developed Market Bonds to have negative real returns over the next seven years. Many advisors are looking for long-term solutions to the dilemma they face: How do I get strong returns in a low interest rate environment, now that the 30+ year bond bull market is over?
Alternative bond strategies, like the Optimus Bond/Currency Allocation, are the answer.
Chart above shows the strategy pulling away from its benchmark. Inception 1/1/2012.
Benchmark: Barclays Aggregate Bond Index.
Backtested data from 1/1/2000-12/31/2011; Live trading results thereafter. Net of fees.
Benchmark: Barclays Aggregate Bond Index.
(Source: Morningstar, AdvisoryWorld & Optimus Advisory Group)
Strategy Description: Seeks to provide investors with the total return normally associated with an actively managed basket of bonds, while using inverse funds and optimal exit techniques for downside risk reduction.
The strategy's flexible mandate allows for long positions in U.S. Government Bonds, High Yield Bonds, Emerging Market Bonds, and the U.S. Dollar along with inverse positions in U.S. Government Bonds and the U.S. Dollar.
The Optimus Bond/Currency Allocation has a distinct risk/return profile and a low correlation to typical bond portfolios, making it an attractive core bond holding. |