GPS strategies incorporate a variety of asset allocation approaches, including strategic, tactical constrained, tactical unconstrained, and absolute return. Genworth Financial says it created GPS for advisers to offer clients more than just “stock-and-bond” diversification options, which are not always effective in times of market volatility.
Genworth says some of these approaches aim to capture the peaks of rising markets and others seek to help protect portfolios from volatility and mitigate downside risk. GPS combines approaches to create a unified strategy that is positioned for both up and down markets.
Advisers will be able to mold the GPS strategies to each client’s investment objective, risk tolerance and the long-term market outlook to identify an investment mix suited to their individual goals. The minimum investment is $25,000.
“The idea is that the adviser can use a turnkey investment solution to deliver a fully diversified portfolio to a client regardless of size or situation,” said Mike Abelson, senior vice president of Investment & Product Management. “As always, advisers play the valued role of portfolio navigators, helping each client define goals and outlook, and determining the best course for moving toward their desired destination.”