Each Guardian allocation utilizes the active/defensive style GIM has become known for. This diversified style attempts to minimize portfolio loss during difficult or “bear” markets and seeks to provide risk adjusted returns that meet or exceed the returns of similarly allocated passive managers.
The Guardian allocations range from the conservative Fixed Income to the more aggressive Stock, Sector and Country allocations. Guardian allocations are designed for investors who place more emphasis on their desire for principal preservation. Below is a list of our allocation offerings.
Guardian Fixed Income
This Model is diversified mostly among domestic bond funds with a small allocation to foreign bonds periodically. It is a flexible fixed-income strategy tactically allocated in bonds between one end of the yield curve and credit quality spectrum to the other, commensurate with the economy’s position in the interest rate cycle. We actively monitor and alter it in an attempt to maximize returns within moderate risk parameters. This allocation is designed for clients who seek relatively high current income while also seeking good risk-adjusted total returns. It may also be suitable for clients requiring higher income with safety and stability. This allocation often uses high yield bond funds. Such funds generally contain non-investment grade bonds (sometimes called “junk bonds”.) These usually offer better yields than higher rated bonds with similar maturities. But they are also considered speculative and can involve greater price volatility and risk of loss.
Guardian Tax-Free Allocation
This strategy seeks to provide current income exempt from federal income tax by investing in a diversified mix of domestic tax-free bond funds of varying maturities. This strategy may be suitable for investors that are in a high income tax bracket and are seeking tax-free income.
Guardian Balanced Income
This Model has a strategic target of 70% equities and 30% bonds and is designed to provide a moderate level of current income and moderate growth.
Guardian Conservative Balanced
This Model has a strategic target of 50% equities and 50% bonds and is designed to provide conservative long-term growth with some current income, though less than the Guardian Fixed Income and Guardian Balanced Income allocations.
Guardian Balanced
This Model has a strategic target of 60% equities and 40% bonds and is designed to provide long-term wealth accumulation with moderate risk and purchasing power protection.
GIM Tax Aware 50/50
The Tax Aware 50/50 (50% equity/50% fixed income) is for investors who want an allocation that is managed with an eye toward post-tax, rather than pre-tax, returns. Its fully tax aware strategy is about more than simply holding municipal bonds. For instance, turnover is an important consideration since short term gains are taxed more heavily than long term ones. Qualified dividends are taxed at a lower rate than income distributions, and equity funds may have both taxable and tax-deferred shareholders. The Tax Aware 50/50 is managed with these considerations in mind. It is designed for investors who seek long term growth in after-tax wealth. Since it generally maintains a significant exposure to equities, it is for the investor who can tolerat