The RiverShares Global Allocation composite is designed for a time horizon of 7-10 years and focuses on global equity investments with a supplemental fixed income allocation. The global equity component is based on those asset classes that RiverFront believes offer value on a long-term basis and includes potential allocations to US and international equities (both developed and emerging market). The fixed income component seeks to diversify some of the portfolio’s equity investment risks. This strategy is wholly implemented through shifting allocations to a suite of actively managed ETFs that are sub-advised by RiverFront. RiverShares holdings are limited to this suite of ETFs. The RiverShares portfolios have a condensed structure and generally hold between five and nine positions at any given time.
Stocks are the preferred way to accumulate wealth for investors with a 7-10 year plus investment horizon in our view. With a benchmark allocation of 80% stocks and 20% bonds, we believe RiverShares Global Allocation is a slightly more conservative way to accumulate wealth. That said, it gives Riverfront some flexibility to increase and decrease weightings based on our strategic and tactical views.