Investment Objective

Investing in equity markets over a long time horizon has been shown to be one of the best ways to achieve increased wealth. TGM’s Low Volatility Equities strategy provides equity like returns with lower volatility and reduced drawdowns when compared to traditional equity market investments.

S&P/ASX200 Index TGM Low Volatility Strategy
Annualised Return 8.04% 7.41%
Annualised Volatility 13.58% 5.85%
Return/Risk Ratio 0.59 1.27
Max Drawdown -50.58% -13.12%

Investment Strategy

TGM’s Low Volatility Equities strategy can be successfully applied to the investors underlying equity holdings as an overlay, or alternatively, TGM can combine the overlay with an underlying specified Exchange Traded Funds (ETF) exposure.  This provides the investor with equity market exposure and, in the case of Australian equities, the ability to receive franking credits.  In order to reduce the strategy’s volatility, TGM has developed proprietary downside protection and valuation models, which allow TGM to reduce the strategy’s exposure to equity markets and increase it to defensive assets.  The neutral position is to be fully invested in equities.   TGM actively manages the exposure to equities via the use of exchange traded equity and bond futures contracts and cash. This results in a strategy that provides equity like returns with significantly lower volatility and drawdowns relative to traditional equity market investments.

S&P/ASX200 Index TGM Low Volatility Equities Strategy1
Annualised Return Annualised Volatility Return/Risk Ratio Annualised Return Annualised Volatility Return/Risk Ratio
1 year -1.07% 19.24% -0.06 -2.54% 4.75% -0.54
3 years 5.55% 19.59% 0.28 2.18% 6.21% 0.35
5 years 7.11% 16.26% 0.44 4.45% 5.80% 0.77
10 years 8.66% 14.02% 0.62 5.87% 6.37% 0.92
Inception2 8.04% 13.58% 0.59 7.41% 5.85% 1.27

For further information on the versatility of the TGM Low Volatility strategy and how it can sit within your portfolio please contact us here at TGM.

 Note that the performance numbers are based on out-of-sample backtests of TGM’s investment process. Results are net of transaction costs but gross of management fees.  

1 Strategy example is based on the S&P/ASX200 Index  as the underlying physical investment.  

2 Return numbers are for the period April 2002 to December 2022.

Disclaimer

This Website is for information purposes only and is not intended to be relied upon as a forecast, research or investment advice. The information on this Website does not constitute a recommendation, offer or solicitation to buy or sell any product or service or to adopt any investment strategy, nor shall any such product or service be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Although this material is based upon information that TGM considers reliable and endeavours to keep current, TGM does not assure that this material is accurate, current or complete, and it should not be relied upon as such. Any opinions expressed on this Website may change as subsequent conditions vary. Decisions based on information contained on this Website are the sole responsibility of the visitor. In exchange for using this Website, the visitor agrees to indemnify and hold TGM, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses arising from your use of this Website, from your violation of these Terms or from any decisions that the visitor makes based on such information.

The investments and strategies discussed in the Website may not be suitable for all investors and are not obligations of TGM or its affiliates or guaranteed by TGM or its affiliates. TGM makes no representations that the contents are appropriate for use in all locations, or that the products or services discussed on this site are available or appropriate for sale or use in all jurisdictions or countries, or by all investors or counterparties. By making available information on the Website, TGM does not represent that any investment vehicle is available or suitable for any particular user. All persons and entities accessing the Web Site do so on their own initiative and are responsible for compliance with applicable local laws and regulations.

All investments involve risk and may lose value. The value of your investment can go down depending upon market conditions.  All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that products or services will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of investing they choose to do.

Past performance whether actual or simulated performance is not necessarily indicative of future results. Unless specifically noted otherwise, all return examples provided on our website and publications are based on simulated results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because simulated performance and past performance are not necessarily indicative of future results.