AAA is neither an asset manager, nor a financial advisor. We are a digital financial education publisher of robust, diversified global index fund portfolios that are based on equal weight allocation. We have no clients.
We opted to generate such portfolios, to guide individual investors, and financial professionals to encourage them not to rely on forecasting the price of securities, but rather to consider using low-cost passively managed index funds. Our belief in the random walk theory, which is based on the premise that securities prices on major stock exchanges are “efficient”, where a large number of analysts, and intelligent participants actively compete to predict the future value of securities, and where important current information is freely available to all participants. Thus, the information is reflected in the price of individual securities.
However, periodical uncertainties cause the prices of securities to deviate from the intrinsic values and cause their prices to wander randomly. There are numerous market researchers, and academics who support the random walk of securities prices starting with early 20th century French mathematician Luis Bachelier, Nobel laureate Eugene Fama, and others.
Bachelier, Cootner, Fama, Kendall, Moore, and Granger and Morgenstern.
Portfolio construction begins with determining the universe of global broad market indices to use, and then to generate three diversified portfolios with different levels of risk.
Investors may select an Aggressive portfolio that feature low double-digit risk, or Moderate portfolio for a high single digit risk, and Conservative portfolio for a low risk level
No, as it is based on the uncertainty of events, but risk can be estimated based on the law of probability.
Investors can use broad based index funds of chosen asset managers, or Exchange Traded Funds (ETFs) these products are generally used to generate a portfolio.
Though many global indices are based on different currencies, we selected our portfolios of index funds denominated in EURO, GBP, and USD. The asset managers of such index funds and ETFs normally hedge foreign currency exposure.
Portfolio rebalancing will not be carried out more frequently than twice per year. Thus, reducing turnover costs, and keeping the level of risk around the designated level. Rebalancing will always constitute reinstating equal weight to all seven holdings in the portfolio. For example, the index funds that rose in price would be sold and those that dropped in price would be bought in order to maintain the 14.2% per holding approach.
There is a risk in investing, as the prices of securities fluctuate and the returns may be such that the value of an investment may fall below its initial value. You should speak with an authorized investment advisor if you are not sure about the suitability of this type of investment style. We give neither financial, nor tax advice. Therefore, seek independent advice if you are uncertain.