Relative Alpha®
We’re pleased to formally announce our globally diversified Relative Alpha® investment approach.
Our conviction has grown as we have researched and incubated these funds over the past few years.
Relative Alpha® strategies have consistently produced alpha in up and down markets relative to peer groups1,2 and provide full transparency, daily liquidity, and high levels of tax efficiency.
Long-Term Consistency of Relative Alpha®
Outside research has shown that Relative Alpha® indices, which these funds track to within hundredths of a percentage point, have outperformed the following percentages of peer group funds for the trailing 15-year period ending 12/31/183:
When constructing a globally balanced portfolio of Relative Alpha® strategies, and comparing it to what many consider the most thoroughly resourced and researched funds in the world, top quartile U.S. Endowments and Foundations, we’ve also found the following:
The Relative Alpha® portfolio ranked in the top quartile for every single 10-year fiscal period starting in June of 2000 and running through June of 20193 (nine consecutive 10-year periods ending in 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, and 2019).
We pleased to now make the advantages of Relative Alpha® available to both individuals and institutions in a form that is low cost, transparent, liquid, tax efficient and easy for all investors to understand.
For more information on how our Relative Alpha® strategy can be customized to meet your goals and objectives, please call us at 617-602-1900.
P.S. with Important Related Reading and Disclosures
What types of funds make up our Relative Alpha® approach?
Index funds.
Many say that all investing is relative to other alternatives (opportunity cost or benefit of one choice over another).
Based on this, it could be argued that index funds and ETFs have consistently produced Relative Alpha®.
In trademarking the term, we are not actually launching a new fund or strategy.
In addition, we are not suggesting that other investment strategies or approaches aren’t appropriate or have not added value. Many good funds exist that have generated alpha and many of the endowment strategies that we reference have performed well.
We are simply trying to change the way index funds, and investment approaches that use them, are perceived.
As an example, if you are invested in index funds and hear someone downplaying these so-called passive funds, you could simply nod and say this?
“I’m investing in a Relative Alpha® strategy.”
“The approach is low cost, fully transparent, completely liquid, tax efficient, and has consistently outperformed over many decades.”
After hearing this, my bet is that many would want to hear more and be inclined to invest.
The good news is that any individual, family or institution, regardless of asset size, has been able to invest in Relative Alpha® strategies for many years and still can.
They are called index funds and the portfolios that are constructed with them.
Related Reading:
Do You Need to Join the Endowment Club?
Outperformance in Down Markets 100% of the Time?
How Can Trustees Be Prudently Passive?
Footnotes:
- SPIVA Year-End 2018 Scorecard
- SPIVA 2018 Persistence Scorecard
- The globally diversified Relative Alpha® fund portfolio is detailed in the article: Do You Need to Join the Endowment Club?. Click the link and read below to see important disclosures.
Important Disclosures:
Analytics and performance are presented for informational purposes only and do not constitute an offer or recommendation to buy or sell securities or to engage any investment manager.
This complete document is for informational purposes only and it should not be regarded as an offer to sell or as a solicitation of an offer to buy the securities or other instruments mentioned in it.
The products mentioned in this document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates, or other factors. Additional information will be provided upon request.
Opinions expressed herein are subject to change without notice.
Fiduciary Wealth Partners, LLC does not guarantee the suitability or potential value of any particular investment or information source and accepts no liability for reliance on this data.
Past performance does not guarantee or indicate future results.
Trillions – Our Talk With Robin Wigglesworth About Index Funds 