- Scientifically established principles -
LONG TERM SYSTEMATIC APPROACH BEFORE SHORT AND TACTICAL
STRATEGIC ALLOCATION (91%)
MANAGER SELECTION (5%)
TACTICAL ALLOCATION (2%)
* Brinston; Singer & Beebower; Financial Analysts Journal; 1991.
Strategic allcation, i.e. the long term allocation between asset classes, is the main contributor to portfolio return over time. Studies also indicate a clear negative correlation between degree of activity and portfolio returns. COIN promotes a long-term, rules-based way of working with a limited amount of short term tactical allocations and a focus on robust portfolio construction.
UNCORRELATED CASH FLOWS CREATE OPPORTUNITIES FOR HIGHER RISK ADJUSTED RETURNS
*Yale University Endowment Portfolio - 14% per year for 30 years
Diversification is often referred to as the "only free lunch". By exposing the portfolio to various risk premiums with low correlation, a higher return per unit of risk can be achieved.
COIN's approach focuses on helping investors achieve a well-diversified portfolio through exposure to uncorrelated cash flows, ie assets with underlying value growth that do not have a direct connection to the equity or fixed income market.
BE SENSIBLE WITH FEES - ONLY SPEND WHERE IT MAKES A DIFFERENCE
AFTER 1 YEAR (30%)
AFTER 3 YEARS (17%)
AFTER 5 YEARS (10%)
*Morningstar Global Equity 31/12/2005 until 31/12/2015