iQ Canada All Assets Hedge Model

GO ANYWHERE...AT ANY TIME

Why limit yourself to just stocks and bonds?

The iQ Canada All Assets Hedge Model seeks maximum real return, consistent with preservation of real capital by methodically maneuvering between domestic & global equity, credit, commodity and currency markets*.  The Model follows a data-driven “all asset” approach that combines top-down technical analysis with bottom-up fundamental analysis.

PROCESS

The iQ Canada All Assets Hedge Model represents an equal-weighted portfolio of four asset class and/or sector strategies. The strategies are selected by applying two proprietary rules-based processes to a starting universe of twelve low-correlated asset class and sector strategies.

The Model takes the two lists selected by each process and assigns each strategy a score based on its position in the list.  The Model then selects the top four strategies based on their highest overall score, favoring those that were chosen by both of the following processes:

Process #1

We begin with a starting universe of twelve low-correlated asset class and sector strategies.

  1. We rank these strategies by 9-month McGinley Dynamic and keep the top eight strategies.

  2. We sort the remaining eight strategies by 16-month standard deviation and select the lowest four.

Process #2

We begin with a starting universe of twelve low-correlated asset class and sector strategies.

  1. We rank these strategies 9-month McGinley Dynamic and keep the top eight strategies.

  2. We sort the remaining eight strategies by 3-month relative strength and keep the top four.

This model reconstitutes every February, May, August and November

*Exchange Traded Funds (ETFs) are utilized to represent currencies, bonds, and commodities.