The investment process of the Enhanced Permanent Portfolio Strategy (“EPPS”) is based on the innovative investment research of Rational Invest. The basic concept on which the strategy is based is the Permanent Portfolio of Harry Browne, amongst the most well-known investment strategies worldwide.
The strategy pursues a quantitative, rule-based investment process that adaptively allocates between stocks, bonds, commodities and cash instruments on a monthly basis to achieve a robust risk/return profile. Each of the asset classes is optimized individually applying a range of proprietary trading and allocation rules. Cross-correlations of instruments and asset classes are accounted for to achieve a significantly lower overall portfolio volatility. Amongst the methodologies applied are various ranking and rotation algorithms across sectors, industries, markets and asset classes globally.
The methodologies deployed have been thoroughly tested across a broad set of economic conditions. The strategy is designed as a diversified all-weather multi-asset strategy generating robust performance while mitigating downside risk during severe market crashes.