There are two schools of thought when it comes to investing. First, there is the school of thought that it is best to allocate a portfolio to a variety of assets and let those assets stay in a fixed allocation. The second school of thought is that active management can produce better returns with less risk. We have developed a variety of investment programs designed to meet the growing needs of investors searching for active management. By offering a variety of programs an investor can allocate a portfolio to several active management styles. There is never a single solution to the investment question, but prudent investment principals should always be your guide.
Understanding that various asset classes carry different risk profiles, Global Investment Solutions has developed investment programs that appeal to both the conservative investor and the investor seeking more aggressive growth opportunities.
We encourage you to view the information that we have contained on this site and to ask questions about how the various programs will benefit you.
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ConservativE | HIGH YIELD BOND STRATEGY
The High Yield Bond Strategy is the most conservative strategy that GIS offers. High Yield Corporate bonds tend to trend more smoothly than other asset classes. The average daily volatility or absolute rate of change has been 0.17% since June of 2003. Compare that daily change to long term Treasury Bonds at 0.65% and the S&P 500 at 0.73%. When the Lipper High Yield Bond Index is trending higher we buy mutual funds that own those type of bonds, if the trend turns down we sell those mutual funds and move to the safety of a money market fund. Trading with this type of analysis has been approximately two to three trades per year.
ModeratE | HIGH YIELD & EQUITY STRATEGY
This strategy is considered moderate based on the increase in volatility and would be appropriate for a larger portfolio seeking growth while still controlling volatility and downside risk. The strategy breaks the portfolio into two separate models, the first being the High Yield Bond Strategy that we target a portion of the portfolio to. The second model is based on analysis derived from the high yield bond index, Treasury Bonds and the S&P 500. It is illustrated that high yield corporate bonds tend to follow a similar path as the S&P 500, both up and down. If the trend for the high yield bond index is positive we consider that a better environment to invest in the S&P 500. If the trend turns down it is less attractive to invest in the S&P 500. We do a similar analysis of the S&P 500, determining if the trend is positive or not. We then compile an investing environment Time Period or TP. TP1 indicates that both the high yield index and the S&P have positive readings. TP2 indicates that only one of the two is in a positive trend and finally TP3 indicates that neither of the two are trending in a positive direction (think 2008). To further benefit portfolio performance we then measure the rate of change of both Treasury Bonds and the S&P 500. During each TP (Time Period) the rate of change that determines an extended market change. It is easier to own the S&P 500 during TP1 while in TP3 we completely avoid investing in the S&P 500. The portfolio management is then to determine if we should invest the remaining portion of the portfolio into either the S&P or Treasury Bonds based on the TP level and the rate of change.
Opportunity | REVERSAL STRATEGY
This strategy is considered an “Opportunity” portfolio and offers the best potential return. Based on the market environment (TP1, TP2 or TP3) phase and the rate of change between Treasury Bonds and the S&P 500, we determine if we should own the S&P 500 or Treasury Bonds. When one of those two markets gets stretched beyond a pre-determined level based on the TP environment we “reverse” the invested position to take advantage of the likely change in performance and a reversion to the mean.
Roger Kliminski is a founding principal of Global Investment Solutions an Investment Advisory firm located in Newport Beach, California. Global manages portfolios for individuals, qualified retirement plans and corporate entities utilizing mutual funds and individual securities.
Roger graduated from Arizona State University in 1976, and entered the investment community in 1980 with Paine Webber as an account executive. In 1984 he co-founded MK Asset Management Company, which today is known as Global Investment Solutions. Mr. Kliminski was instrumental in the development of the various investment management strategies used by the firm today.
Roger is a past president of the Orange County Chapter of the American Association of Individual Investors. AAII is a non-profit organization with over 170,000 members nationwide and over 4,300 in Orange County alone. Along with his role as President of the Chapter in Orange County, Roger was
the head of the Program Committee that arranged speakers for the Orange County Chapter of AAII.
Roger is also a past president and former member of the Board of Directors of The Child Guidance Center, Inc., a non-profit organization located in Orange County. The Child Guidance Center is dedicated to improving the family structure by providing community-oriented mental health, child abuse, and substance-related counseling services. In addition, Roger is a past member of the Investment Committee for the Harbor Area Youth Foundation, Boys and Girls Club.
With his thirty-nine years of investment experience, Roger brings an educational approach to clients that entrust Global with the management of their portfolios. His goal is to ensure that clients understand, and feel comfortable with, the investment approach employed on their behalf.
1300 Bristol St. North, Suite 100
Newport Beach, CA 92660 U.S.A.