Market Update – November 2012

I enjoy riding roller coasters….when I go to Disneyland or an amusement park.  However, I don’t enjoy getting whipsawed down, back and forth by the stock market.  I know you don’t and more importantly, we all know our clients really don’t enjoy it.  What to do?

From a growth and allocation perspective, most investors need real annualized appreciation in their accounts.  Historically, this requires allocating a portion of ones portfolio to the stock market.  At the same time, many investors are uneasy about the volatility the equity market introduces.  Ones reluctance to invest in the equity markets stems from fear of not only losing money but also experiencing large fluctuations in the value of their investments.  No one likes being exposed to the unmanaged equity market roller coaster ride.  Experience has shown that investors either don’t want to get on in the first place, or jump off at the worst possible time.

The SGI Low Volatility Equity Model seeks to significantly reduce the volatility of the equity markets, provide investors with the upside equity markets historically produce, offer superior risk adjusted returns, manage the risk in the market to provide downside protection, all while maintaining 100% exposure to equities. Think of the children’s roller coaster rides at Disneyland.  They still go up and down, but the ride is much smoother.

SGI historically captures around 50% of the markets downside while capturing around 85% of the markets upside*.  This is accomplished through SGI’s proprietary portfolio construction process investing only in individual equities.

A few distinct characteristics of the SGI Low Volatility Equity approach is:

1.  SGI actively selects individual equities in managed accounts and within the Summit Global Investments U.S. Low Volatility Equity mutual fund.

2.  SGI does not attempt to trade in or out of cash or fixed income funds in order to manage volatility.

3.  SGI stays actively 100% invested across individual equities and across all market sectors, managing the risk of the market through individual security selection.

To schedule a call or to arrange for an office meeting to discuss the SGI Low Volatility Equity Model and the portfolio construction process, please contact Bryce Sutton @ 888-251-4847

For the most recent performance please visit: Morningstar.

Disclaimer: *Past returns are no guarantee of future results.  Summit Global Investments U.S. Low Volatility Equity Mutual Fund is sold by prospectus only.

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