Model Portfolios | Sad Rabbit Investments

Model Portfolio

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Expected Return

Forecast Annual Return

Risk Rating

1

2

3

4

5

6

7

Model Portfolio

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Model Portfolio Explanation

What is a model portfolio?

A model investment portfolio is a collection of assets, such as equities, bonds, and alternatives, designed to align with a specific set of investment objectives and risk parameters. These portfolios can be used as a reference point for investors to craft their own unique portfolio around an example asset allocation.

To construct our model portfolio, we used the in-depth asset class analysis in the previous section, which allowed us to build a portfolio that reflects the current sentiment of professional market participants. This portfolio provides exposure to all major asset classes and geographical regions, giving investors a truly globally diversified model portfolio. Additionally, the underlying asset allocation dynamically adjusts depending on the ratings of each asset class, allowing the portfolio to shift its allocation depending on market sentiment and economic trends.

What are risk and return ratings?

Expected Return: Expected return forecasts are used by professional investors to estimate the performance of individual asset classes, or whole portfolios, over the following 10-year period. Although these expectations are not guaranteed, they can help guide long-term investment decision-making and are constructed using historical market data and macroeconomic forecasts. We have utilised this industry standard methodology to produce a combined expected return for the model portfolio to estimate the likely annual return that the portfolio could achieve over the next decade.

Risk Rating: Investors often use risk ratings to provide a quick snapshot of the potential volatility and risk associated with a specific investment type or asset class. These are typically presented on a scale from 1 to 7, where one denotes the lowest risk and seven is the highest. We have used the individual asset class risk ratings to produce a combined risk score for the model portfolio. Investors can use this overall risk rating to assess the current portfolio positioning across the risk and return spectrum.

Expected Return

Forecast Annual Return

Risk Rating

1

2

3

4

5

6

7