Model Portfolios

investing with seensco model portfolios

SEENSCO has created a series of model portfolios to help retail and institutional clients obtain superior investment results while saving time and money. SEENCO's model portfolio's have been created with a customized asset allocation aimed at delivering risk-adjusted returns that are in line with the needs of different types of investors.

invest smarter

Do you have difficulties timing the market? Or are you constantly buying high and selling low. Achieve better long-term returns following our model portfolios.

save time and money

With our portfolios, we make the investment process simple and easy. Execute buy/sell transactions from your own direct brokerage accounts.

build wealth faster

Investing in one of our diversified portfolios of stocks, designed and optimized for improved risk-adjusted returns and ease of execution, will help you build wealth faster.

SEENSCO has developed 6 model portfolios. These portfolios were derived based on a mean-variance optimization procedure and should appeal to multiple types of investors. Each portfolio is re-calibrated annually or unless otherwise warranted due to major stock price movements. Get Started Now 

model portfolios

save money

We have created a “Core” Model Portfolio to help guide investor’s decision making process. This portfolio is intended to help investors obtain high quality and independent professional advice helping them achieve solid investment results without having to put in the time and incur management fees. The portfolio has been carefully constructed with an assortment of best of class American and Canadian stocks.

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To accommodate the interests of our dividend-focused clients, we have created the Dividend Achievers Portfolio. This portfolio consist of 25 of the top performing dividend-paying stocks in our coverage universe. The portfolio is intended to help investors identify high quality dividend-paying companies based on independent professional advice, helping them achieve solid investment results without having to put in the time and incur management fees.  The portfolio has been carefully constructed with an assortment of best of class American and Canadian stocks.

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Strong demand from anxious investors has led us to roll out the Safety-First Portfolio. This portfolio aims to neutralize risk by holding companies of only the best economic caliber whose revenues, earnings and cash-flows fall less than average during recessions and whose stock prices tend to drop less than the broad market during stock market reversals. The portfolio consist of 25 of the safest stocks in our coverage universe.

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Value investors are primarily concerned with company fundamentals and balance sheet strength and look for companies that trade for significantly less than their intrinsic worth. Growth investors, on the other hand, focus primarily on expansion potential. That is, they aim to identify companies that will grow substantially faster than others. When growth companies flourish, they can yield astronomical returns. We have created an Aggressive Growth Model Portfolio to help guide investors’ decision making process.

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Many of the world’s best investors follow a selective contrarian investment style. Simply put, this involves going against general market sentiment and trends by buying only the highest calibre assets that, for many possible reasons, are performing poorly. Investors will then sell the assets once their share prices have recovered and the market becomes overly bullish on the positions. We have created a Selective Contrarian Model Portfolio to help guide investors’ decision making process.

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The investment practice by which one buys the same securities as institutional investors, market gurus, and/or market insiders is a positive sentiment strategy otherwise known as “following the smart money.” The belief is that these investments perform better than others because institutional investors, gurus, and market insiders are thought to be better informed and have more significant pricing power than most investors. But where can you go for such a strategy? A good place to start is our Positive Sentiment Portfolio.

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Pay our annual subscription fee and nothing more. Do it yourself and pay zero portfolio management fees. Our Model Portfolios offer a cost effective investment alternative for investors desiring small or large portfolio holdings.

With no portfolio management fees and no advisory fees, pay only account fees, if any, and transaction fees charged by your self-directed brokerage company. This could save you more than 1% in costs per year compared to other portfolio management solutions.

Do-it-yourself portfolio management based on our model portfolios can  translate directly into higher risk-adjusted returns for your portfolio.

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Note: Reflects average fund expenses and advisor fees based on a selection of 236 American and Canadian mutual funds, managed ETF accounts, and fee-for-service advisor services. 


 

Find Those Perfect Stocks!

"With SEENSCO, you gain access to 6 model portfolios. Each portfolio is composed of 25+ stocks, was constructed based on MVO principles, and is oriented towards a distinct market strategy. You can choose to replicate the portfolios or alter your holdings based on your own opinions and judgements. Each portfolio has outperformed the S&P 500 since inception!"

 

 

 

Understanding Volatility, Returns, and Which Portfolios are Right for You

When choosing a Model Portfolio, it is important that you understand the common trade-off between volatility and return. For example, based on the current portfolio’s holdings of our "Core" portfolio, we expect to earn an average annual compound rate of return of 10%. Also, there is a 31% probability of losing money on the portfolio next year. These estimates are based on our best forecasts. Of course there will be annual periods where the returns could be much higher than 10%, or much lower. On the other hand, based on the current holdings in our "Dividend Achievers" portfolio, we expect to earn an average annual return of 8%. There is an 18% probability of losing money on the portfolio next year. All said, it is typically the case that lower volatility portfolios earn lower, but safer, returns over the long-term and higher volatility portfolios earn higher, but less certain, returns over the long-term.

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Stock Selection Process

The selection of each stock for our Model Portfolios is a function of each stock’s volatility-level. To determine the optimal stock holding for various volatility levels, we follow a variation of a methodology developed by Nobel Prize winning economist Harry Markowitz called Mean-Variance Optimization (MVO).

MVO is a mathematical framework that is used by many institutional and sophisticated investors. By using MVO, we can find the optimal combination of stocks that maximize returns for each level of risk, consistent with a particular investment style/focus. The inputs to MVO are expected returns for each stock, standard deviation of returns, skewness of returns, kurtosis of returns, loss probabilities, and correlation of returns of stock with each other. These inputs, including standard deviation and correlation of stock returns, are calculated from the annual return data for the last 20 years, with greater weights applied to more recent years.

We have developed various models to forecast expected returns for each of the stocks in our coverage universe. For instance, our models look at current dividend yields, growth in earnings per share, returns on capital, weighted average costs of capital, historical multiplier ratios as well as forward price to earnings ratios.

To account for the volatility in the expected returns of our stocks, and to reduce the optimization’s sensitivity to input parameters, we simulate thousands of possible return scenarios within the constraints of the stock’s expected returns, standard deviations, and correlations. For each scenario, we calculate an optimal portfolio consisting of 25-100 stocks. We then use a bootstrapping technique to combine the results of each simulation to arrive at our recommended stock portfolio. This process is often called re-sampled Mean Variance Optimization in the financial industry. We then run a sensitivity analysis to determine and rank stocks within our coverage universe to identify those expected to have the greatest impact on returns, for a given risk level. The model portfolios that we arrive at using this method are less sensitive to changes in discount rates and growth assumptions, and are expected to outperform the market over the medium- to long-term.

 

 

 

 

 

 

 

Lazy-Man Investing!

"SEENSCO model portfolios are designed for medium- to long-term investors that want access to professionally structured, low cost, well diversified, portfolios of stocks but do not have the time, temperament or skill-set to pick individual investments and re-balance their own investment accounts. It is frequently called "lazy-man investing" or "couch potato investing."

 

 

 

Diversification

Diversification is the process of combining assets that don't always move in the same direction as each other, to the same extent, and at the same time in reaction to market movements. By combining assets that sometimes move in opposite directions, it is possible to reduce a portfolio's total volatility and increase risk-adjusted returns. The idea is that when some stocks do poorly, others might perform well. Our Model Portfolios are diversified by utilizing up to 100 different American and Canadian stocks. Each Model Portfolio holds at least 25 different stocks designed to provide you with the appropriate diversification.

Buy and Hold vs. market Timing

Buy and hold investors aim to purchase a portfolio of stocks and hold them for a long period of time, regardless of fluctuations in market activity. Most buy-and-hold investors don't actively time the market. Model portfolios represent a perfect tool for such investors. They also represent a perfect tool for those wishing to time the market in an attempt to boost their returns. It is much easier to time broad market movements and exploit those movements with ETFs and model portfolios than it is to time individual stock movements or shifts in industry cycles.

 

portfolio optimization

Portfolio optimization is the art of combining stocks to achieve the highest expected risk-adjusted returns. The first, and most important, step in building your portfolio is to figure out the desired style focus and risk parameters. In general, investors with a short-term time horizon should employ a safety-focused and/or dividend-focused approach. Investors with long-term time horizons should consider a more aggressive or contrarian approach weighted more heavily toward high potential return stocks. Furthermore, research shows that having an appropriate stock-mix is extremely important for reaching financial goals. Our optimization process within each Model Portfolio means you can achieve a higher risk-adjusted return for a given strategy.

portfolio rebalancing

Once you have selected a model portfolio, and the specific stock allocations, we automatically review and re-balance the portfolios for you. That means that over time as the portfolio changes in value, we re-asses the stocks to ensure that the optimal and highest ranked stocks remain in the portfolio. Our re-balancing service saves you time and effort as it eliminates the need for tracking your portfolio daily, manually calculating adjustments, and developing your own optimization routines. It also instills a sense of discipline, which is critical for long-term success.

control emotions

Model portfolios makes it simpler and easier to manage your money. It is also a great way to eliminate emotional and erratic decision making behavior and reap the long term benefits of a disciplined investment approach. Research shows that investors can realize better results than many professional fund managers because most active fund managers are motivated only by short-term returns and buy only those stocks that recently performed well and sell those stock that recently performed poorly. Our model portfolios help take the emotion out of the decision making process, which can help investors realize as high a return as possible. We make it easy to set up your portfolio with notifications sent to subscribers on all re-balance dates.

lower costs

Maximize your risk-adjusted returns and minimize your execution costs. Using model portfolios helps you lower your costs while maintaining strong returns. This means you'll have more money in your pocket at the end of the day. Pay the SEENSCO subscription fee only to access our 6 model portfolios. Execute your own trades, don't pay any account fees, no re-balancing fees, no portfolio management fees. Our model portfolio service provides significant cost savings compared to traditional mutual funds, do-it-yourself and advisory-based ETF services. In addition, you get access to all of our stock research reports and market timing indicators.

 


 

 

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Construct your portfolio & re-balance annually

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