Asia-Centric ETFdb Portfolio

Published on by on August 30, 2010 | Updated February 11, 2014

Portfolio Strategy

Long Time Horizon Low Current IncomeHigh Risk ToleranceTheĀ Asia-Centric ETFdb Portfolio is designed for investors who are bullish on the outlook for Asia, and believe that this region offers a more favorable risk/return profile than the rest of the world. This ETFdb Portfolio is constructed with an asset allocation strategy of 65% equity (including 10% in real estate) and 35% in fixed income, although these weightings may be tweaked depending on willingness and ability to take on risk (those looking for less risk may wish to increase the fixed income allocation, and vice versa). Although many investors have shied away from real estate investments in recent years, we believe that international real estate is very different from American real estate and can still provide valuable return enhancement and diversification benefits (particularly over the long term).

Many investors have gravitated towards Asia because of the attractive growth potential, especially when compared to the developed markets of the U.S. and western Europe. Beyond the rapidly-expanding economies of China and India, a number of Asia’s smaller economies are turning in impressive growth rates, leading many to believe that the world’s largest continent (as well as Australia) will be the driver of global growth well into the future. This ETFdb Portfolio is designed for investors who are willing to take that theory to the extreme, weighting both the equity and fixed income portions of their portfolios heavily in Asian securities.

In many respects, this ETFdb Portfolio is similar to traditional portfolios; equity exposure is split between developed and emerging markets and is spread across various sectors and market caps, while fixed income exposure is also included. But there is minimal direct exposure to the U.S. and Europe; in constructing this ETFdb Portfolio we have attempted to include only ETFs that focus exclusively on Asian securities.

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ALD will implement a tiered investment approach, with markets deemed to maintain larger and more liquid debt markets receiving higher weightings in the fund. A single country cap of 20% will be applied.