Pre-Retirement
Managed Income
Wealth Accumulation
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Protection
The Protection strategy uses government bonds to reduce
equity risk in the portfolio during periods of severe
market volatility. The timing of the moves to the
government bonds are sped up if markets are more
volatile than normal or if interest rates are low. CLS
uses two investment vehicles – mutual funds and
exchange trade funds, or ETFs.
Investors, particularly “nervous” investors,
use the Protection strategy:
- to provide an extra management technique to support
their risk budget.
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to provide a disciplined approach to exiting and
entering the market in volatile times.
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to counter-balance a current life situation that
limits their ability to recover from a severe down
market.
The Protection strategy is not designed to closely track
market averages. Account assets are moved to bonds
automatically based on market performance, interest
rates and volatility. It is important to remember
“protection” is not the same as market
timing. The moves out of the market are not timed to add
value, but are designed to statistically lessen the
probability of a client’s portfolio experiencing a
larger loss.
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