Investment theory is just that: theory. While certain investment techniques have consistently led to better risk adjusted performance - diversification, rebalancing, an aversion to crowd following - a prudent investor should also be forward looking and adapt to a changing financial and economic world, where reality does not neatly match theory. The 2050 portfolios build on a foundation of proven investment techniques and enhance the investment process with a forward looking assessment of financial markets, asset classes, and economies and a critical evaluation of conventional wisdom. The 2050 portfolios are broadly diversified multi-asset class portfolios available in different versions across the risk spectrum from conservative to growth oriented investors. The 2050 strategy is also available as Sociallly Responsible Investing (SRI) option.
Global economic growth will
become increasingly constrained by ecological limits, which lead to higher
environmental costs and resource scarcity. At the same time, growth in the
population size and standard of living in emerging and frontier markets is
accelerating the demand for resources and putting ever greater strain on the
planet's eco systems. As a result, the global economy needs to generate more
output with less physical inputs, and fewer environmental externalities. This,
in turn will drive demand for products and services related to renewable
energy, water & waste management, and pollution control. Our proprietaty Green Economy strategy seeks to capitalize on opportunities in these sectors with the objective of delivering long-term capital growth. We look for companies that are on solid financial ground today and can deliver innovation for tomorrow.
Whereas the middle class in the developed world is under pressure, the picture in developing and frontier economies is decidly more bright, with people escaping poverty and attaining a higher standard of living at rates unprecedented in human history. Africa is at the epicenter of this trend. Investors who acknowledged the tremendous potential of Emerging Asia 30 years ago were rewarded handsomely for being early movers. We believe that Africa, and particulary sub-Saharan Africa, provides a very similar opportunity for investors today. Through our partnership with Africa Capital Group (ACG), based in Coronado, CA, we offer the Africa Growth separate account strategy. Jan Schalkwijk, CFA, portfolio manager at JPS, is also on the investment team of ACG.