We aim for higher returns with lower volatility

  • Building a portfolio using the weights recommended by a PRATER model typically produces higher long run returns than either of the underlying assets, and better risk-adjusted returns.
  • We have tested this process using total return indices for the equity markets of over forty different countries.
  • We typically achieve higher absolute returns than either the high or the low risk asset or any fixed combination of the two, and…
  • … higher risk-adjusted returns than either the high or the low risk asset or any fixed combination of the two, and…
  • .. smaller and shorter peak to trough drawdowns than the high-risk asset and most fixed combination of the two, and…
  • ..volatility which is  in line with, or lower than, a fixed 50/50 combination of the two assets.
  • Full details of all these back-tests are available on request.