Investment strategy
Portfolio Tilt Series
The Gradient Portfolio Tilt Series is an actively managed, diversified asset allocation strategy that utilizes Gradient Portfolios as the underlying investments. The Tilt Series has 4 different series, from Conservative to Growth, that correspond to an investor's risk tolerance.
Then, each series is allocated using "tilts" that select Gradient portfolios that are in-favor based upon the analysis of the Gradient Investment Management Team.
The Tilt Series is periodically rebalanced to maintain risk consistency, but is also reallocated opportunistically based upon market conditions and the analysis of the investment team.
Portfolio Adjustments
Based on the outlook of the Gradient Investment Committee, we have made the following adjustments to our Tilt Series models:
Conservative Model
Composition
Breakdown
Balanced Model
Composition
Breakdown
Moderate Growth Model
Composition
Breakdown
Growth Model
Composition
Breakdown
We have eliminated the 3yr Laddered Income portfolio from the Tilt Series: Conservative, Balanced, and Moderate Growth. With the proceeds, we have added to our Fixed Income Total Return portfolio. The Fixed Income Total Return portfolio is now the ONLY fixed income model in the Tilt Series.
We believe we are closer to the end than the beginning for Fed Reserve rate increases. We believe that long term rates aren't likely to rise significantly from current levels. As a result, we are looking to extend duration/maturities in the portfolio. The Laddered Income is bound by shorter duration assets with 33% in year 1, year 2, and year 3 respectively. Therefore, it was not a fit with what we were trying to accomplish in the Tilt Models.
Equity allocations were left unchanged at this time but are subject to change as market dynamics dictate. Individual equities were bought and sold to realign them back to proper percentages in the models.