Who is this model for?
This model is appropriate for those investors with the ability and willingness to take an additional risk beyond the Kaleo portfolios. "Willingness" refers to the desire for additional risk, while "ability" refers to the investor's capacity to take additional risk, and is determined by a combination of time horizon, income levels and asset base.
Top 10 Investments as of September 30, 2019
Cash (or Equivalent) 17.0%
Micron Technology 10.0%
SPDR Gold Trust ETF 8.4%
American Intl. Group 6.3%
(Based on Revenue)
WHAT DOES THIS MODEL INVEST IN?
The model consists of a portfolio of stocks we believe to represent the best opportunity for positive returns within a 3-5 year investment horizon, regardless of short-term volatility. Due to the nature of the portfolio, clients are encouraged to also hold a mixture of fixed income investments, as well as our more diversified and less concentrated Kaleo model in order to moderate and match investor specific tolerance for risk. The chart above gives you a snapshot of the model's investments on September 30, 2019. Please note that the composition of the model will change.
HOW RISKY IS IT?
The value of the model can go down as well as up. You could lose money. One way to gauge risk is to look at how much a fund's returns change over time. This is called “volatility”. In general, investments with higher volatility will have returns that change over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. Investments with lower volatility tend to have returns that change less over time, and typically have lower returns and a lower chance of losing money.
Qube has rated this model as “high risk”. This rating is based on the concentrated and non-diversified approach in the construction and future rebalancing of the model. Due to these factors, we anticipate the model to have high volatility in any single year period.
Returns are after trading costs but before management fees on a model portfolio of $500,000. All returns for a period of more than one year are reported as annualized returns. Reported returns are for the period ending September 30, 2019.
If your account is registered as a pension trust, RRSP, RESP, LIF or RRIF you only pay tax on withdrawals from the account. Otherwise, you'll pay income tax on any money you make on your investments. How much you pay depends on the tax laws in the Province in which you live. Interest, dividends and other distributions in a non-registered account are included in your taxable income, whether you withdraw them in cash or have them reinvested in the model.
Qube's Qatalyst Investment Model
You can access more detailed information from Qube's team; please consult professional advice prior to investing to ensure your investment is appropriate based on your tolerance for risk.
Lead Portfolio Manager: Ian Quigley, MBA
Client Relations Contact: Noah Clarke, MA