Each All Weather Model utilizes a strategic asset allocation investment strategy, with a focus on risk management to mitigate downside risk, via a portfolio of Index, Sector/Specialty and Fixed Income no-load mutual funds.
Unlike dynamic investment strategies that emphasize dynamic management and strategy diversification, our approach to managing client investments within the All Weather Models emphasizes three themes:
(1) strategic management,
(2) investment diversification, and
(3) a long-term investment horizon.
(1) Strategic management: The All Weather Models utilize a strategically managed asset allocation mix designed to provide you with the optimal balance between expected risk and expected return for the strategically managed portion of your overall investment portfolio.
A traditional passively managed buy-and-hold investment portfolio utilizes a "set-it-and-forget-it" approach - whereas you make an investment and hold on to it regardless of how it performs - during good times and bad - based on the rationale that all markets inevitably will go up over the long run. The buy-and-hold approach lends itself to certain sectors/indices of an investment portfolio becoming overweight due to out-performance, while other sectors/indices becoming underweight due to under-performance. For this reason, a traditional passively managed buy-and-hold investment portfolio will at times expose you to taking on far more risk than you may have intended - especially during market bubbles - resulting in significant losses during market corrections. This is similar to what happened to many investors who entered the 2000-2002 bear market overweight technology as a result of the preceding bull market tech bubble.
In our strategically managed All Weather Models, we utilize a "buy-and-rebalance" approach - whereas each model is periodically rebalanced to take advantage of "reversion to the mean", based upon the rationale that all markets revert to the mean at one time or another - which enables you to benefit from volatility and contrarianism over a long-term investment horizon.
(2) Investment diversification: The All Weather Models investment decisions are based on the principle that different asset classes perform differently in different market and economic conditions. And different asset classes offer returns that are not perfectly correlated, hence diversification reduces the overall risk in terms of the variability of returns for a given level of expected return.
We have found that the choice of asset classes has a far greater impact on your strategically managed investment portfolio's long-term investment results than any other investment decision you will make. If you invest in one of our All Weather Models, your investments will not be overly dependent on any particular asset class.
Strategically managed portfolios are only as strong as the investments they contain and we favor using a diversified portfolio of no-load mutual funds. Green Pastures has access to thousands of mutual funds and securities and we sift through those choices for you. We owe allegiance only to our clients - and that independence allows us to choose what we regard as the highest quality investments for your portfolio to help you achieve financial success.
(3) A long-term investment horizon: The value of broad diversification is manifested over the long-term - and the strategically managed models seek to generate relatively consistent long-term performance. The All Weather Models are among the best strategically managed investment strategies we know of for serious long-term investors, however, they are not for everybody, and may or may not be right for you. Like most worthwhile investment strategies, the All Weather Models require you to make a long-term commitment and are designed to produce favorable long-term results.
Each All Weather Model seeks to:
(1) provide capital appreciation and current income consistent with its asset allocation,
(2) make money over complete bull and bear market cycles,
(3) minimize downside volatility and drawdowns (losses) relative to major U.S. equity market indices during bear markets, and
(4) complement dynamically managed investment portfolios.
Click on the Chart 16 link below to review the Hypothetical Report Disclosure Statement that should be read in conjunction with the exhibits above.
Click on the Chart 15.1 -15.4 links below to review detail performance results and risk/return statistics (Net of Fees) for the Green Pastures All Weather Models.
> No-Load Mutual Funds (Vanguard)
> Minimum Investment: $25,000
> Liquidity: Daily
> Transparency: Daily
> Management Fee: 0.50%
> Commissions: None
> Hidden Sales Charges: None
> Liquidation Penalties: None
Chart 14 below highlights summary performance results and risk/return statistics (Net of Fees) for the Green Pastures All Weather Models through September 30, 2022.
The Green Pastures All Weather Models consist of strategically managed mutual fund account models for no-load mutual funds. Each model differs with respect to its asset allocation, upside performance potential and corresponding downside potential for risk.
While we believe dynamically managed investment strategies such as Green Pastures Defensive Growth Models have their merits and a place in your investment portfolio, we also believe you should explore complementary strategically managed investment management strategies for your investment portfolio, such as Green Pastures All Weather Models.
By complementing your dynamically managed investment portfolio with the All Weather Models, these two very different approaches combine to help give you what you want - reasonable returns along with peace of mind.
The goal of the All Weather Models is not to beat the market or any benchmarks. We are not selling performance or promising miracles - the goal is to help you achieve your goals based investment plan.
Diversifying a portion of your investment portfolio into the strategically managed All Weather Models can help guide your overall investment portfolio during periods when your dynamically managed Defensive Growth Models wander off course - and diversifying a portion of your investment portfolio into the dynamically managed Defensive Growth Models can help guide your overall investment portfolio during periods when your strategically managed All Weather Models wander off course.
Smoothing out the volatility and drawdowns (losses) creates more stable returns - more stable returns typically translates into lowering your stress level - and a lower stress level typically translates into producing better long-term investment results for you - because it makes it easier for you to stick with a plan, through good times and bad, and enjoy long-term success.
In the introduction to this section, we wrote that by complementing your dynamically managed investment portfolio with our strategically managed All Weather Models, these two very different approaches combine to help give you what you want - reasonable risks and returns - and peace of mind.
Green Pastures All Weather Models can be put to use as stand-alone investment portfolios, as complements to Green Pastures Defensive Growth Models or as complements to your investment portfolio held elsewhere.
While we do not have a crystal ball as to when a strategic or dynamic investment strategy will perform better, by diversifying investments between Green Pastures strategically managed All Weather Models and Green Pastures dynamically managed Defensive Growth Models, you can be in a position to benefit from whichever strategy is performing well at the moment.
The combination of reasonable risks and returns, with real peace of mind, is the ultimate investment portfolio, giving you the time and freedom to focus on the more enjoyable aspects of life.
To learn more about how you may benefit from Green Pastures All Weather Models, please call 203.449.9889, email email@example.com or use the Contact Us tab.
Artist: Amanda C. Herbert | www.essentiaequi.com
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This communication is issued by Green Pastures Wealth Management LLC ("GPWM"). The material contained on this website is for informational purposes only and GPWM is not soliciting any action based upon such material. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. GPWM may maintain long or short positions in some of the financial instruments referred to. Unless stated specifically otherwise, this is not a recommendation, offer, or solicitation to buy or sell a security and any prices or quotations contained herein are indicative only. Material accessible through this website is not to be construed as investment advice, nor does it constitute a representation that the investments described herein are suitable or appropriate for any person. To the extent permitted by law, GPWM shall not be held liable for improper or incorrect use of data or information contained in any electronic publications. Information, data and related graphics contained in electronic publications are not legal documents and are not intended to be used as such. GPWM gives no warranty, expressed or implied, as to the accuracy, reliability, utility or completeness of any information contained in any electronic document. Past performance is no guarantee of future results. GPWM offers no accounting, tax, or legal advice. GPWM is a Connecticut Registered Investment Advisor which may only transact business where it is properly registered, or qualifies for an exemption or exclusion from registration requirements. GPWM accepts clients nationally per applicable state registration regulations and the "de minimis" exception.