Saxo Bank Creates Balanced Portfolio for Long Term Investors
HELLERUP, Denmark, June 6, 2013 /PRNewswire/ --
Saxo Bank, the multi-asset online trading and investment specialist, has created Balanced Portfolio, a new asset allocation strategy that allows traders to follow its progress on Tradingfloor.com and duplicate the strategy themselves.
The Balanced Portfolio is an ETF portfolio designed to collect risk premiums across liquid assets in various economic environments. Balancing the portfolio across different economies and asset classes, and allocating equal risk to each creates a stable performance with less volatility over time when compared to traditional equity-concentrated portfolios.
Saxo Bank built the framework for the new portfolio on the idea of four economic environments: prosperity, inflation, deflation and recession. The asset target weights are calculated by multiplying the economic environment weight with the assets' weights, which are all set to equal.
Peter Garnry, Head of Equity Strategy, Saxo Bank commented: "We have created the Balanced Portfolio strategy to engage traders, and in addition ETFs have become a cost effective investment option to gain broad market exposure. By implementing the strategy themselves, the costs incurred are minimal and only related to executing the trades and the total expense ratio annualised on the ETFs. We have designed this new approach to address the demands of our more long-term oriented clients, and to protect investors from unpredictable events in the market of which we have seen so many of late."
The Balanced Portfolio consists of seven asset classes (large cap equities, emerging market bonds, commodities, gold, corporate bonds, long-term government bonds and inflation-linked government bonds). These are tracked by seven liquid ETFs traded on US exchanges, and asset allocation will be published on a monthly basis on Tradingfloor.com.
The Balanced Portfolio is based on USD denominated ETFs, but due to large demand from our European clients, a Balanced Portfolio based on EUR denominated ETFs will be published in June.
About Saxo Bank
Saxo Bank is a leading online trading and investment specialist, offering private investors and institutional clients a complete set of tools for their trading and investment strategies. A fully licensed and regulated European bank, Saxo Bank enables clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three specialised and fully integrated multi-asset trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoTrader app. The platforms are available in over 20 languages and are white-labelled by more than 100 major financial institutions worldwide. Saxo Bank also offers professional portfolio and fund management as well as traditional banking services through Saxo Privatbank. Founded in 1992, the Saxo Bank Group is headquartered in Copenhagen with 24 local offices throughout Europe, Asia, Middle East, Latin America, Africa and Australia.
SOURCE Saxo Bank