ETF Global Opportunity Portfolio
The Portfolio is Managed to respond to the Dynamically Changing Global Market Conditions
Portfolio Objective
Our ETF Global Opportunity Portfolio seeks long-term capital appreciation. The portfolio is managed to respond to the dynamically changing market conditions by rotating assets between different industry sectors, asset classes, and countries as they move into and out of favor. Our ETF Global Opportunity Portfolio offers the opportunity to transform market volatility into opportunity. Its goal is to outperform the S&P 500 Index on an absolute and risk-adjusted basis (over a full market cycle).
Portfolio Discipline
Our investment strategy is objective and employs our proprietary RSM model that is both quantitative and computer-driven. We use our methodology to rank approximately 78 industries, countries, and asset classes based on several measures of price momentum. We then invest in the top five ranked sectors, industries, or countries. As market conditions change, so will the positions in this portfolio. Up to 20% of the portfolio may engage in short sale strategies by utilizing inverse index/bear market ETFs.
ETFs: What are they?
Exchange Traded Funds (ETFs) are pooled investments that have a trust-originated or open-ended structure. ETFs allow investors to diversify their portfolios by investing in a single unit or depositary receipt that conveys beneficial ownership in a basket of stocks or index representing a particular industry, sector, or group. When compared to traditional mutual funds, ETFs generally have lower operating expenses, the ability to be traded intra-day, and the ability to minimize capital gains distributions. ETFs are actively traded on several stock exchanges, most notably the American Stock Exchange (AMEX). On the secondary market, ETFs will trade with regular stock commissions and usually have a minimum investment amount of 100 shares.
When might an Investment Advisor consider ETFs for his or her clients?
ETFs should be considered by investors who seek to invest in an industry sector or index and don’t want to acquire and manage a multitude of equity stocks in their portfolio. Investors with longer time horizons can benefit from the low expense ratios and management fees incurred by ETFs. Index-oriented investors can also use ETFs as an easy and cost effective means of rebalancing their portfolio towards a specific sector or country and facilitate tax-based trading strategies.
Fee Schedule
The fee assessed shall be calculated on the basis of the total market value of the assets under Rich Investment Inc.’s supervision at the close of business on the last day of each quarter.
Minimum Investment: $100,000
Portfolio Manager: Matthew R. Falvey
Custodian: Schwab Institutional
Fee Structure:
$100,000 – $1,000,000
billed quarterly at 0.50% (2.0% annually)
$1,000,000 +
billed quarterly at 0.25% (1.0% annually)
