Risk-Adjusted Return Enhanced™ (RARE™) Investing
Values-based investing is about aligning personal goals and values. Depending on how much you are investing, we can pursue a portfolio design consistent with returns expectations. We use research that has garnered Nobel Prizes in finance, rather than simply trying to “make money.”
We call this Risk-Adjusted Return Enhanced™ Investing (or RARE™ investing). Simply put, certain types of asset classes, and investment recipe ingredients, should be in any of our portfolios. We then vary the mix of those ingredients to get various rare expected returns.
While many investment managers strive to beat the market by attempting to predict the future, we prefer to set guesswork aside. We focus instead on putting the long-term growth potential of global markets to work for you.
Envision Wealth Planning RARE™ investing portfolios vary in terms of composition and asset class weighting. However, they all seek to keep costs low and control risks that are accounted for through portfolio design.
A portfolio designed to deliver expected rates of return commensurate with your chosen level of risk is the end result. For example, a 4% average annualized return with a range of between -8% and 16%.
We currently support the following investment recipe blends:
- 100% Stock
- 85% Stock 15% Bond
- 65% Stock 35% Bond
- 50% Stock 50% Bond
- 35% Stock 65% Bond
- 20% Stock 80% Bond
The least volatile, or one least subject short-term declines is the 20% stock 80% bond blend. The most volatile, or one most subject to short-term declines is the 100% stock. If you believe in having no interest in integrating your values into low-cost, passive investing, stop here with our base risk-adjusted return enhanced models.
Values-Integrated Portfolio™ (VIP™) Investing
Are you looking to integrate personal values into your investing?
Most of our clients want to have us integrate their personal values into their investing (aka values-based investing). This simply means that in addition to investment managers being concerned about a stock or bonds ability to make a profit, they are also concerned about how that money is made.
Values-based investing is the foundation of our Envision Justice Series™ Portfolios. Our standard portfolios screen out publicly traded companies pertaining to Racial, Gender, and Climate Justice.
The following detail provides a bit more depth into what we mean by those categories:
- Migrant Detention Involvement
- Prison Industry Exposure
- Discrimination Violations
- Diversity Score
- Women on Boards
- Clean Energy Companies
- Deforestation Producers Exposure
- Environmental Violations
- Fossil Fuel Industry Exposure
- Toxic Air Pollution
Will our portfolios make money?
We benchmark our model portfolios to commercially available asset allocation portfolios from Vanguard and Fidelity. In the majority of cases, our RARE™ Portfolios beat their returns, while our Envision Justice Series™ Portfolios beat them October 9, 2017 through December 31, 2021.
Ready to see if our rare™ VIP™ investing approach is right for you? For further details about the Envision Justice Series™ Portfolios, click here to contact us and set up a time to talk to one of our investment advisor representatives.
Asset allocation alone does not ensure a profit or protect against a decline. Stock investing involves risk including loss of principal. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.