Tag Archives: Investment strategy

The results of the T-Advisor model portfolios in 2016

T-Advisor, as wealth management solution for individuals and professionals, has not only tools for own investments, but also proposals to follow or even copy. That’s why our system has its own model portfolios. They are nine: five related to risk profile (from aggressive to very conservative) and five related to countries (Germany, UK, Spain in Europe and Mexico and Nasdaq 100 in the Americas).

How do they work? We select between four and six ETFs for the risk-profiled portfolios and up to ten stocks for the country portfolios. The main point for us is capital preservation. That’s why our results, when they are negative, are better than the markets. To obtain those results, we rebalance the portfolios every two months. These rebalances let us improve the results, as we exclude the positions more affected by market negative waves and substitute them for better stocks or ETFs. Diversification is also part of the strategy. We select the securities with the best score and relevant figures to obtain the best results.

These are the results for 2016 for our risk-profiled model portfolios:

1-Y-return 2016 1-Y-return 2015 Volatility Sharpe ratio
Aggressive

5.85%

-2.53%

12.51%

1.51

Dynamic

5.29%

1.47%

11.14%

1.52

Balanced

1.79%

3.53%

6.18%

1.42

Conservative

2.68%

1.52%

2.82%

1.35

Very conservative

0.90%

0.80%

2.07%

0.55

The figures were collected on January, 2nd, and we compare the results of 2015 and 2016. There is a general improvement (except the balanced strategy, although it is positive anyway). We have to remember that the year was quite unstable in the markets, as there have been several surprises that affected negatively. Despite this instability, none of our strategies closed with negative returns.

And now the results of our country portfolios:

1-Y-return 2016 1-Y-return 2015 Volatility Sharpe ratio Index
Germany

41.37%

44.70%

14.01%

6.98

6.87% (DAX)

Spain

1.31%

5.74%

16.17%

2.13

-2.01% (Ibex)

México

14.58%

23.96%

13.98%

5.61

+6.20% (IPC)

Nasdaq 100

24.68%

2.97%

9.58%

4.71

+7.50% (Nasdaq)

UK

9.03%

18.32%

15.99%

4.69

+14.43% (FTSE)

Except the UK portfolio, our strategies outperformed their benchmarks, but even the British one obtained a quite good return. The best performer was the German strategy again and the worst was the Spanish, but in this last case, the benchmark Ibex finished with a negative result.

Learn more about our portfolios and the assets included in our platform. Aren’t you tempted to clone them? We have a tool to let our users do it. Let’s try it and compare the results with your investments!

Choose your financial target and create your strategy to achieve it

Investing is a serious activity. It is not lottery or gambling. When you invest, you do it with a specific financial target: your retirement, your house or just obtaining good returns for your money. In any case, you cannot choose your investments hazardously, but with a strategy.

T-Advisor investment planner main screen

The T-Advisor investment planner helps you select your target and obtain a strategy in four easy steps. In the module “My targets”, click on “New Plan” and the pop-up will propose you up to 7 different targets: investment, housing, studies, car, vacations, health and retirement. Every plan has its own specific settings to properly adapt the results.

Retirement plan settings

The system will ask you for your risk profile to select a comfortable strategy for you from conservative to dynamic. The risk is linked to the proportion of equities you are ready to accept in your portfolio. If you have doubts, the tool offers you an easy questionnaire to define it.

As a result, you obtain a projection with the expected returns and the best and worst scenarios. The tool also adds settings to evaluate the tax and inflation effects.

Investment planner projection

At the end, the system proposes you a generic allocation linked to product categories, not with specific funds, shares or ETFs. After that, you can create your own portfolio following this proposal.

Investment planner result

Does this kind of tools make sense? Absolutely. They are very helpful for every investor, as it show the chances of obtaining concrete results for a specific period. It is a tool to avoid false projections or dreams. In investing, it is important to be realistic, as you are using your own money. Investments are always risky and past performances do not guarantee future returns, as classic disclaimers insist. That is why investors have to use tools to plan and organise their portfolios.

One of the main troubles that we find in average investors is the absence of plans. They have money, but they do not know what to do with it or how to allocate it. This indecision has a negative effect: their money loses purchasing power and they do not profit from possible positive evolutions in the financial markets. They are losing in both ways.

With an investment planner, people can be aware of their chances to achieve the target, organise their finance globally, perceive the progress and change the strategy, if it is not working. This is the purpose that T-Advisor supports as a model: investors have the control over their financial decisions with the best tools for free.