We have constructed globally diversified portfolios in order to control downside risk in bear markets while participating in bull markets.
Cougar Global manages globally diversified portfolios using exchange traded funds (ETFs). Each of the four mandates uses a mix of asset classes offering the highest expected potential return based on Cougar Global’s current Capital Market Outlook.
Each client has individual financial goals in terms of principal protection and income requirements. Clients with the same MAR often have different investment horizons and risk tolerance depending on their age, employment status, marital status, etc.
Each mandate is constrained to have an exposure at a specific level of downside risk. The MAR 6 has a 95% probability of positive returns and a 5% probability of negative returns, the MAR 8 has a 90% probability of positive returns and a 10% probability of negative returns, the MAR 10 has a 85% probability of positive returns and a 15% probability of negative returns and the MAR 12 has a 80% probability of positive returns and a 20% probability of negative returns.
MARs are not guaranteed and investors are willing to accept the risks associated with the portfolio’s objective.
Cougar Global employs its asset allocation expertise using Exchange Traded Funds (ETFs) that track index returns for each global asset class. The portfolios constructed with ETFs result in lower fees, lower trading costs, and increased tax efficiency. We currently use approximately 20 ETFs and constantly monitor and evaluate other ETFs for potential use.