The Optimal Market Portfolio (OMP)

565 WordsFeb 17, 20182 Pages
The Optimal Market Portfolio (OMP) Our Optimal Market Portfolio (OMP) is the expression of what we believe will deliver the best risk adjusted returns over time. The construction and management of the portfolio is derived from our top-down macroeconomic models constantly maintained by our asset management division, GL Capital Partners. The propriety models underpinning our Optimal Market Portfolio incorporate more than 40 global asset classes and 200 asset sectors, resulting in a portfolio diversified based on sources of risk and return. Ongoing multi-factor risk analysis is performed on the portfolio to help minimize overexposure to any specific risk, such as U.S. equity risk or interest rate risk. Our research suggests that properly diversifying a portfolio’s sources of risk and return and not simply adjusting an allocation between stocks and bonds is the key to long term portfolio outperformance. Terminology Beta – This ratio describes how much market risk is in your portfolio. A Beta of 1.0 means your portfolio has just as much risk as the S&P 500 and its performance will likely reflect that of the market. Sharpe Ratio – This ratio describes how much return a portfolio earns for every unit of risk. It demonstrates how effective a portfolio manager has been in producing risk adjusted returns. A higher sharp ratio means higher risk adjusted returns. Fund Name Investment Category ISHARES MSCI AUSTRALIA ETF Developed Market Equities - Australia ISHARES MSCI EAFE

    More about The Optimal Market Portfolio (OMP)

      Open Document