The Guardian strategy is actively allocated across many sectors and/or asset classes, over weighting those exhibiting the best risk-to-reward ratio. These are primarily limited to low volatility mutual funds in an overall effort to reduce downside exposure.
Through the careful selection of funds with a history of providing higher risk-adjusted returns, the opportunity for higher returns may still be achieved while maintaining lower risk.
Specialty investments – with greater volatility – may be used from time to time to hedge risk and provide for smoother returns. Risk-managed policies employ the use of cash or money market funds during adverse conditions; these positions could at times be 100%.