Retirement Fund Analysis Service Methodology
The retirement fund asset allocation strategy utilized by ECAM is based upon delivery of Provident/Retirement fund absolute returns over complete market cycles. It does this by modifying your individual portfolio asset allocation model (as determined by the ECAM Psychometric Risk Tolerance Questionnaire) adjusted for actual market conditions via our 5-Factor model.
The 5-Factor model adjustments include the following models:
The investment strategy has been designed to provide a clean and simple interface to allow members to quickly assess the ideal risk-adjusted model portfolios for inclusion in their retirement accounts.
The strategy utilized by ECAM is based upon delivery of retirement fund absolute returns over complete market cycles. It does this by starting with an optimal asset allocation model based upon each individual's unique risk tolerance as measured by our ECAM Psychometric Risk Tolerance Questionnaire. This questionnaire is recognized as one of the most accurate investment risk tolerance questionnaires currently available and is used by Vanguard Investments (who have $4.4 Trillion USD assets under management) for their clients.
The results are grouped into 7 distinct risk groups with corresponding levels of investment risk tolerance. This unique risk adjusted profile is then modified by a 5-factor model to reflect current market conditions.
While highly complex and intuitive, the investment strategy has been designed to provide a clean and simple interface to allow members to quickly assess the ideal risk-adjusted model portfolios for inclusion in their retirement accounts.
The Retirement Fund Analysis is completed as follows:
1) Determine your personal specific financial risk profile by completing the ECAM psychometric risk analysis questionnaire.
This should only need to be done initially and then once every 2-3 years as your personal circumstances change over time (age, time to retirement, accumulated assets, etc.). The questionnaire will assign you one of 7 Risk Groups dependent upon your unique risk tolerance.
2) Consult the ECAM Model Portfolios within the password protected "Retirement Fund Determination Process" area to self-determine the unique asset allocation specific to your risk group.
Each Risk Group is assigned a range of exposure to risk assets that is proven to deliver the optimal exposure to such assets based upon your personal risk profile. The exposure range will indicate a "optimal" exposure to risk (growth) assets based upon your personal risk profile.
3) If interested, consult the various model inputs within the password protected "Retirement Fund Determination Process" area to determine how the various 5-Factor models are currently positioned relative to market dynamics.
There is no need to do so if you are not interested in the details as the various metrics have been incorporated into the final ECAM risk adjusted portfolios.
4) Determine the ECAM risk-adjusted portfolio based upon your risk tolerance group modified for current market conditions as determined by the 5-Factor model within the password protected "Retirement Fund Determination Process" area.
During normal market conditions the ECAM risk adjusted portfolio will modify your risk-adjusted portfolio for actual market conditions. During times when risk assets are reasonably priced the portfolio will "tilt" towards the upper end of your ideal portfolio risk asset weighting. Alternately, if risk assets are expensive the portfolio will "tilt" towards the lower end of your ideal portfolio risk asset weighting.
The ECAM risk-adjusted portfolio include a unique "limit" switch. Should the markets experience a decline from an over-price level (whereby the market model indicates there is a high likelihood a significant bear market decline is probable), the portfolio model is moved 100% into cash to protect investment capital irrespective of risk group. Once the bear market condition is over, the model will move back into the "overweight" tilt of your respective risk group.
5) Adjust your retirement fund account holdings to reflect current model portfolios as required.
Once you have reviewed your specific ECAM 5-Factor Risk Adjusted model portfolio, make the adjustments as required.
The 5-Factor model adjustments include the following models:
- Economic Model
- Fundamental Model
- Technical Model
- Sentiment Model
- Stress Model
The investment strategy has been designed to provide a clean and simple interface to allow members to quickly assess the ideal risk-adjusted model portfolios for inclusion in their retirement accounts.
The strategy utilized by ECAM is based upon delivery of retirement fund absolute returns over complete market cycles. It does this by starting with an optimal asset allocation model based upon each individual's unique risk tolerance as measured by our ECAM Psychometric Risk Tolerance Questionnaire. This questionnaire is recognized as one of the most accurate investment risk tolerance questionnaires currently available and is used by Vanguard Investments (who have $4.4 Trillion USD assets under management) for their clients.
The results are grouped into 7 distinct risk groups with corresponding levels of investment risk tolerance. This unique risk adjusted profile is then modified by a 5-factor model to reflect current market conditions.
While highly complex and intuitive, the investment strategy has been designed to provide a clean and simple interface to allow members to quickly assess the ideal risk-adjusted model portfolios for inclusion in their retirement accounts.
The Retirement Fund Analysis is completed as follows:
1) Determine your personal specific financial risk profile by completing the ECAM psychometric risk analysis questionnaire.
This should only need to be done initially and then once every 2-3 years as your personal circumstances change over time (age, time to retirement, accumulated assets, etc.). The questionnaire will assign you one of 7 Risk Groups dependent upon your unique risk tolerance.
2) Consult the ECAM Model Portfolios within the password protected "Retirement Fund Determination Process" area to self-determine the unique asset allocation specific to your risk group.
Each Risk Group is assigned a range of exposure to risk assets that is proven to deliver the optimal exposure to such assets based upon your personal risk profile. The exposure range will indicate a "optimal" exposure to risk (growth) assets based upon your personal risk profile.
3) If interested, consult the various model inputs within the password protected "Retirement Fund Determination Process" area to determine how the various 5-Factor models are currently positioned relative to market dynamics.
There is no need to do so if you are not interested in the details as the various metrics have been incorporated into the final ECAM risk adjusted portfolios.
4) Determine the ECAM risk-adjusted portfolio based upon your risk tolerance group modified for current market conditions as determined by the 5-Factor model within the password protected "Retirement Fund Determination Process" area.
During normal market conditions the ECAM risk adjusted portfolio will modify your risk-adjusted portfolio for actual market conditions. During times when risk assets are reasonably priced the portfolio will "tilt" towards the upper end of your ideal portfolio risk asset weighting. Alternately, if risk assets are expensive the portfolio will "tilt" towards the lower end of your ideal portfolio risk asset weighting.
The ECAM risk-adjusted portfolio include a unique "limit" switch. Should the markets experience a decline from an over-price level (whereby the market model indicates there is a high likelihood a significant bear market decline is probable), the portfolio model is moved 100% into cash to protect investment capital irrespective of risk group. Once the bear market condition is over, the model will move back into the "overweight" tilt of your respective risk group.
5) Adjust your retirement fund account holdings to reflect current model portfolios as required.
Once you have reviewed your specific ECAM 5-Factor Risk Adjusted model portfolio, make the adjustments as required.