Wealth Creator Portfolio Summary
KYUR’s PMO portfolios are designed to suit your risk-of-capital-loss tolerances, as well as certain of your personal circumstances. KYUR uses quantitative algorithms to evaluate the fundamental strengths and risks of the individual securities to be included in each PMO portfolio; most important are the probabilities and possible amounts of losses of the securities, and consequently the portfolios overall.
The WealthCreator Portfolio is structured to generate potential capital appreciation for your investment; income is not a primary goal. Generally, this is a portfolio for growth-oriented investors seeking to maximize long-term growth of principal, and willing to tolerate potentially larger losses. Nevertheless, it is paramount that the Investor Portfolio seeks to maximize the chances that potential capital losses do not exceed the amounts you are willing to tolerate, as you have indicated. Although there is no guarantee, implied or otherwise, that losses can be avoided, or losses not larger than expected, KYUR manages your portfolio with the focus of limiting the probabilities of such losses.
Avoidance of losses allows gains to accumulate over time and produce optimal returns. However, in certain periods and market conditions, this strategy may result in your investments lagging behind market benchmarks; especially in strongly rising markets when securities are valued at unusually high multiples relative to their intrinsic values, or when markets are impacted by exogenous factors, such as war or political changes.
Furthermore, avoidance of losses could reduce the volatility of the periodic returns of your investments without hurting investment returns. Volatility is the measure of the risk of an investment in Modern Portfolio Theory and Mean Variance Optimization.
The WealthCreator Portfolio has multiple variations, depending on your personal Risk Temperatures. Each Portfolio contains the same securities, except their weightings in each Portfolio are different.
KYUR offers three categories of portfolios: Saver, Investor, and WealthCreator Portfolios. Each portfolio category has multiple variations. The securities in the three Portfolios may be different although some may overlap. Also, the methodologies to construct them are different. This is because the value functions or behavioral reactions to risks are different among different individuals; in math-speak, they are neither linear nor uniform with regards to gains or losses. This real-world behavior is demonstrated clearly by 2002 Nobel Laureate Daniel Kahneman and other innovators in behavior finance and Modern Portfolio Theory
Our current WealthCreator Portfolio contains Exchange Traded Funds (“ETF”), not individual stocks or bonds. Generally, ETFs are portfolios or funds which comprise a number of equity or fixed income securities. These stocks and bonds share certain common characteristics. They may be within an industry (Consumer Staples), sector (Technology), index (S&P 500), factor (low volatility), or country (France).