Low cost, broadly diversified, total return investment strategy using index funds
Johnston Investment Counsel’s index plus investment strategy is designed to outperform a broad market index using a process known as style rotation. This tax-efficient strategy is entirely implemented using low-cost and tax-efficient style-based index funds or exchanged traded funds.
How Do I Benefit By Using A Index Plus Investment Strategy?
- Outperformance potential compared to just indexing
- Broad portfolio diversification
- An extremely low-cost investment strategy
- A tax efficient invstement strategy compared to active management
- Elimination of active manager underperformance
How Does Johnston Investment Counsel Make Style Allocation Decisions?
In making style allocation decisions, whether for stocks or bonds, Johnston Investment Counsel follows a similar process:
- Evaluate the current macroeconomic environment and determine how it may influence future returns
- Determine the fundamental attractiveness of each investment style
- Examine the technical characteristics of each investment style
- Determine the magnitude of the style of tilt