Why there is no individual stock in Stotz Port? What is the process of choosing those funds? What is the different between Stotz and Best-in-class?
Thanks for your interest in A.Stotz All Weather Portfolio.
1. Why there is no individual stock in A. Stotz Port?
The aim of A. Stotz All Weather Strategy is to create a portfolio that can perform well in any market situation through the diversification of asset class.
This portfolio is constructed by using macro economics factors. Investment team will rotate the asset proportion overtime instead of picking individual stocks to ensure good performance.
2. What is the process of choosing those funds?
There are 2 criteria for selecting funds. First, a certain fund should have low fee. Second, it should represent the asset class or equity portion that we want. As a result, you can see many index funds in the portfolio due to these criteria.
3. What is the different between A.Stotz and Best-in-class?
A. Stotz All Weather Strategy is the portfolio that has been co-created by FINNOMENA Investment Committee and A.Stotz Team. Basically, this portfolio is asset-allocation based aiming to create long-term wealth through many market situation.
Best-in-Class is data-driven portfolio that aims to find the best funds in a certain class such as Thai large-cap equity, Global Technology, and so on. It might be suitable for an investor who has an investment view for a certain asset class in mind but struggle to find which funds are among the best in that class.