The Canterbury Portfolio Thermostat

The Canterbury Portfolio Thermostat

Markets and Weather Have A Lot In Common.
Both will experience dynamic environments.
Both Require a Systematic Process.


Have you ever felt the pains of fluctuating markets and volatility?  Markets can often feel like weather in the Midwest: generally calm in the fall and the spring, but volatile and uncomfortable in the frigid winters and humid summers.
Luckily, our homes have a thermostat.  A thermostat is a control system which responds to changing outdoor environments and adapts to maintain a comfortable environment indoors.  What if your portfolio worked like a thermostat?

The Canterbury Portfolio Thermostat
The Canterbury Portfolio Thermostat is an Adaptive Portfolio strategy that moves in concert with changing market environments—Bull or Bear.  

The Portfolio Thermostat is an evidence-based systematic that begins by identifying the market’s environment and gauging the market’s “volatility” or temperature.  The Thermostat then chooses 10-15 Exchange-Traded-Funds (ETFs) and adjusts their allocations to match the market’s environment—keeping your portfolio comfortable regardless of the wild swings in the markets.

We know that markets will have periods of calms, as well as periods of extremes which can pull the reigns of control out of our hands.  The Portfolio Thermostat aims to provide more security and less fear to investors. 

Portfolio Thermostat Benefits

Contrary to traditional portfolio management methods, the Portfolio Thermostat seeks to mitigate risk by adjusting both its holdings and allocations.  Traditional portfolios cannot adapt to rising volatility and bear markets. Traditional risk model allocations are like having a home thermostat that is stuck.  When the financial markets become volatile, a traditional balanced portfolio will also be volatile.  

The Portfolio Thermostat is designed for those who want to mitigate their risks in the financial markets.  When the equity markets have low volatility and are bullish, the Portfolio Thermostat aims to have more exposure to equities.  When the markets become volatile, the Portfolio Thermostat will adapt its holdings to keep your balanced portfolio comfortable, regardless of what is happening in the markets. With the Portfolio Thermostat, have more control and less fear, more evidence, and more security.

A philosophy driven by the need to manage risk rather than chase returns...