The Elixir Portfolios Range is an advisory-investment management service designed to deliver.
• Consistent performance returns
• Total return targets
• Strict risk management controls
• A highly personalised service
The word Elixir is an ancient Arabic term meaning ‘effective recipe’ and was used to describe the correct mixture of active ingredients to create a medicinal potion for eternal life. Similarly, Elixir Portfolios combine the correct mix of assets with an actively managed advisory service to optimise investment returns and reduce exposure to risk.
Total Return Objective
Historical evidence shows that over half the return from long-term investments has been through the receipt and reinvestment of dividends. As long-term investors Yellow Capital seeks to maximise returns by holding investments to provide our clients with both capital appreciation and dividend returns. We don’t believe in short-term speculative bets as an investment philosophy. Evidence shows that it is ‘time in the market’ rather than ‘timing the market’ that produces consistent superior returns.
Mixed Asset Diversification
Elixir Portfolios invest in a wide range of asset classes and seek to achieve a smoothed
performance with less volatility than most balanced approaches. Mixing different asset classes throughout varying market/economic cycles provides a far better risk return profile and characteristics for investors.
Dynamic Management Style
Elixir uses an unconstrained approach to investment management by using significant swing factors. Elixir can increase or decrease exposure to each asset class, region, sector or theme to exploit opportunities or to reduce market risk while remaining within strict portfolio risk parameters.
Personalised Advisory Service
Elixir is an unbiased advisory service that offers investors full disclosure on the portfolios management with a highly personalised service.
Elixir is available on a discretionary managed basis upon request.
Elixir’s investment objective is to achieve the maximum after tax total return within defined risk parameters. To deliver a total return Elixir invests with a contemporary value strategy in mind, combining collective investment vehicles to deliver flexible, efficient and well diversified returns in a consistent and smoothed manner.
Risk Profile & Categories
Elixir Portfolios are available in four ARC (Asset Risk Consultants) defined risk profiles, namely: Cautious Asset, Balanced Asset, Steady Growth and Equity Risk. Below are definitions of Elixir’s risk grades and the typical volatility and return characteristics associated with them.
Cautious Asset – The definition of a cautious asset portfolio is one where the historical variability of returns has been less than 40% of that recorded by world equities. The dominant asset classes tend to be cash, bonds and hedge funds.
Balanced Asset – Balanced Asset portfolios are those where the historical variability of returns has been around 50% of world equities. Balanced Asset portfolios tend to encompass the widest range of asset classes. These portfolios are often referred to as multi-asset or absolute return orientated.
Steady Growth – Portfolios with this risk profile have a historical variability of returns of between 60% – 80% of world equity markets. They usually have a significant allocation to equities but can also have exposure to a wide range of asset classes. Traditionally, these portfolios would have been named ‘balanced’.
Equity Risk – The Equity Risk category encompasses all portfolios with a risk profile similar to that of world equity markets. Traditionally, such portfolios would have been named as ‘growth’. Equities are typically the dominant asset class.
* The above risk categories are available in both income and growth formats.
Swing factors give Elixir the flexibility to respond to ominous economic conditions by reducing risk exposure and enhance opportunities for acquiring value in favourable market conditions.
Strategic allocations to asset classes are defined by relative long term historic returns which are optimised to deliver efficient returns. Long term allocations determine the portfolios neutral allocations and may be altered to enhance long term macro-economic waves or to avoid value traps which may occur from time to time.
Elixir adopts an unconstrained approach to investment management; therefore, while strategic allocations are optimal targets for efficient returns, the day-to-day tactical allocations may vary significantly through the use of ‘swing factors’. Predominantly, the use of value, relative value metrics and extreme market movements drive the tactical allocation process.
Elixir’s strategy can be run on most modern day asset management platforms. Regular quarterly commentary will be provided together with bi-annual portfolio statements.
Elixir’s aim is to achieve target returns for investors. We do not fixate on arbitrary benchmarks and may use them only as reference points.
Liquidity & Redemption
All investment vehicles are listed or registered securities with daily pricing and liquidity.
The value and income of any of the securities or investments and the price of shares and the income derived from them, which are recommended by Yellow Capital, may fall as well as rise. Investors may not receive the original amount invested in return. Investors should also be aware that past performance is not a guide to future performance.
Yellow Capital Wealth Management is a trading style of Yellow Capital Investment & Financial Planning Ltd which is an appointed represented of ValidPath Limited which is authorised and regulated by the Financial Services Authority. Yellow Capital Wealth Management is a member of the Yellow Capital Group.