The SGL Capital Preservation portfolio is designed for the risk-averse / risk-neutral investor with a limited to mid-term investment time horizon. The Targeted Performance over a market cycle is 50 percent of S&P 500 upside performance with 35 percent market risk. The SGL Capital Preservation portfolio is typically 20–50 percent allocated in equity securities. Under normal circumstances, this portfolio will be approximately 35 percent allocated to equity securities and the approximate average equity beta will be less than 1. A primary emphasis is put on U.S. domiciled large-cap equities, although the advisor may utilize other asset classes and capitalizations if opportunities present themselves.
Within the fixed income portion of the portfolio, under normal circumstances SGL Investment Advisors, Inc. prefers to generate alpha via assuming a calculated amount of credit risk before taking undue interest rate risk. A primary emphasis is placed on taxable bonds denominated in U.S. dollars, although the advisor may invest in other fixed income classes as opportunities present themselves.