PUR Investing Inc. - The Details

PUR Investing Inc.

T 1.866.417.0082
F 416.637.3575
E info@purinvesting.com

Where Do You Fit In The Details The Facts

Mark Yamada Bruce Hatt Ioulia Tretiakova Patricia Onyskiw

Alpha and Beta Asset Allocation by PŮR Investment Potential Risk Budgeting PŮR Core and Tactical

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You can now have your portfolio constructed the way that institutions and wealthy individuals have for decades. Portfolios using “core” and “satellite” construction are efficient. Returns come from two primary sources, the market and the security. Market returns dominate in diversified portfolios. Using low cost indexing for the "core" and seeking extra returns from the "satellite" portion is the way sophisticated institutions have managed money for many years. PŮR unlocks this process by using its proprietary web-based system “ActiveBaskets ™” to construct, test and monitor the performance of a portfolio designed for you.	By providing you with an optimally diversified Diversification means far more than holding different assets. PŮR optimizes the components of your portfolio so that you hold only the assets, and in the correct proportion, that give you the best opportunity to perform without wasting money for over diversification and overlap. “core” portfolio that captures the return of the broad market, Getting the market return should be easy. Buy an index fund and hold it. The fact is that professional money managers have a difficult time doing it with any consistency. Only 22 of 83, or about 1 in 4 Canadian Equity mutual funds with a 10 year record could do it (10 years ending July 31, 2007). employing discount brokerage accounts to lower commission and custody costs, and by using technology to mass customize portfolios, PŮR lowers costs and passes all the savings directly to you. The result is a soundly constructed portfolio, specifically engineered for you, that should allow you to sleep better at night. Portfolios are based on historical market experience to meet certain standards of downside protection. While not a guarantee, investors can take some comfort that this aspect of protection has been addressed.	Using a highly disciplined approach, PŮR includes a tactical “satellite” component “Tactical” or “satellite” refers to strategies designed to beat the market. Investment professionals call this “alpha” (α). It is the return that is not explained by the market’s return. i.e. Portfolio: +12% less Market: +10.0% equals alpha (α): 2.0%. designed to add returns above that of the market with controlled risk. The longer your investing time horizon, A longer time horizon suggests you can take more risk because there is more time for the market to rebound from any weakness. Conversely, if your horizon is short, i.e. you intend to buy a cottage next year, any investment that is so volatile that it may drop by more than you can afford, would be inappropriate. the more of this tactical component PŮR can add to your mix to help grow your money faster.	Growing money is sometimes a function of not losing much in weak markets. PŮR has built a unique feature into the “core” component of your portfolio. A theoretically acceptable maximum downside Theoretically acceptable downside is an important component of your Risk Number. PŮR calculates the historical performance of a portfolio like yours and measures the maximum annual downside that it experienced while still being able to deliver a minimum return on capital equal to the rate of inflation. Why is this important to you? While not guaranteed, it provides a theoretical performance floor that addresses the preservation of your capital. for your portfolio is established (from your answers to the questionnaire) and your portfolio is designed with this “risk budget” in mind. That means that historically, your portfolio would never have fallen more than a certain percentage in any year (i.e. 10%) and would still have provided an inflation adjusted return on your capital when you would have needed it.