Resilient Portfolio Active Portfolio Management
The need to consider mega-shifts in macroeconomics, climate and planet health, politics, and natural resource depletion with respect to our financial lives is becoming an imperative.
The concept of “resiliency” was originally used to describe ecosystems and their respective abilities to survive and thrive. Since 2010, we’ve been applying its constructs and terminology to “financial ecosystems” in order to develop more sustainable and healthy family finances. Verdant also believes that, by shifting our active strategy to meet the above global changes, we will generate returns that meet clients’ goals for cash flow while simultaneously preserving precious capital.
For clients with portfolios greater than $500,000, we offer active management using our own Resilient Portfolio screens. The Resilient Portfolio active portfolio management strategy is primarily concerned with managing risk based on finding and investing in the right companies who are adapting to evolving market conditions. Our asset allocation/risk management strategy stays fully invested all the time in the appropriate allocation model—including stocks, bonds, cash and real estate—suitable for a client's risk profile and overall macroeconomic conditions. We designed the actively-managed Resilient Portfolio to be ultimately more conservative and defensive than the typical portfolio because of the lenses we apply to its holdings.
We see the following changes/challenges as the most important upon which to focus our research, thinking, and action:
- Continuing low investment returns for bonds and stocks.
- Loss of a stock market driven by fundamentals.
- Escalating public debt coupled with continued high under-employment and historically low yields and low to negative interest rates.
- "Stranded" oil assets and known reserves at lower Return on Investment.
- Peak global potable water and yet too many people without access to safe drinking water.
- Peak soil coupled with population growth projected to reach 8.5 billion humans, many of whom have a higher standard of eating protein, by 2030.
- Increased risks, including climate refugees, due to climate change.
- Effects of climate change on insurance products and companies.
Clients with fewer investable assets than $500,000 or clients without any investable assets as of yet (or with assets in a workplace retirement plan) may take advantage of our passive portfolio management using ETFs and mutual funds while also taking advantage of Thrive Financial+Life Planning.
Fees for Resilient Portfolio management are on an AUM basis (assets under management) and range from 0.60% to 1.15% depending on AUM level.