The Appian Road portfolio uses leverage to maintain the benefits of diversification at all levels of risk. For instance, returns will grow proportionally as a client chooses a riskier portfolio. This contrasts the poorly diversified traditional 60/40 asset allocation model in which more risk does not necessarily translate into higher returns.
An asset’s performance is driven by two major forces –
growth and inflation.
As can be seen here, stocks do better in an environment
of rising growth and falling inflation, while bonds excel
under falling growth and falling inflation.
We take into account how each asset performs in different economic climates to create four sub-portfolios.
Sub-portfolios combine, each forming 25% of one holistic portfolio that performs well in all economic environments.
We use leverage to match your goals to your preferred level of risk.
Our management fee is 0.75% of assets under management.
We only use low fee ETFs to achieve powerful diversification in our portfolio. You will find that the average ETF fee to be about 0.30%, which on $10,000 approximates to $30 a year. Compare our low fees to industry standard funds, which average above 1%.
We believe in spreading risk across both asset classes and geographical exposure. Unlike other traditional wealth managers or roboadvisors, the global diversification of our portfolio remains intact at all levels of risk - improving the overall bottom line of the portfolio.
A Modern Approach to the
Traditional 60/40 Asset
Allocation Model
"Discover the new 60/40"
~Oppenheimer Funds
Introduction to Risk Parity
"The Risk Parity approach
to Asset Allocation"
~Callan Investments
Institute Research
Overview of Risk Parity
"Understanding Risk
Parity"
~AQR Capital Management
Risk Factors as opposed to
Asset Classes
"Risk Factors as
Building Blocks for Portfolio
Diversification"
~Callan Investments
Institute Research
Introducing Factor Risk Parity
"Diversification - Still the
only free lunch?"
~JP Morgan Asset
Management
The two main drivers of Asset
Classes Returns: Growth and
Inflation
"Regime Based Asset
Allocation Seeks Higher
Returns, Lower Drawdowns"
~BNY Mellon Asset
Management
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