Navellier, a registered investment adviser with approximately USD2.6bn under management, is expanding its offerings by introducing an exchange-traded funds-based suite of strategies called Navellier Vireo.
Vireo is a series of actively managed portfolios that seek to deliver superior returns through a focused strategy of avoiding losses, especially during extended market downturns.
The Vireo portfolio of strategies, based on AlphaSector Premium Indices published by F-Squared Investments, aims to limit losses during extended market downturns.
This strategy, known as defensive allocation, attempts to deliver improved returns in up markets by constantly working from a position of strength – when losses are limited portfolios do not have to recover losses before making new gains.
Each of the four Vireo portfolios is based on AlphaSector Indices that have displayed attractive risk-adjusted returns through a combination of diversification and defensive re-allocation, including a cash equivalent.
The AlphaSector Premium Index is an active index constructed from ETFs that track the primary sectors of the S&P 500 plus a short-term Treasury ETF. AlphaSector Premium uses no derivatives, no leverage, nor shorts any stocks.
“Our marketing research revealed that many investors, especially those nearing retirement, cannot recover from large losses such as those seen in 2008 and therefore seek a more defensive approach for their portfolios,” says vice president of sales Paula Boyd (pictured). “As such, we conducted an extensive search to find a system that has delivered strong relative performance in up markets, but exhibited defensive attributes in down markets. We believe we have found that with F-Squared Investments and the AlphaSector Premium Index, and their related indices.”