Our model portfolios are constructed by a team of financial experts at NBK Capital. The overall strategy looks to optimize the balance between risk and return for each portfolio, a Nobel-Prize winning strategy labeled Modern Portfolio Theory.
When building the model portfolios, we take into account the following parameters (non-exhaustive):
- Regional diversity: exposure to global markets
- Asset class diversity: exposure to equities, fixed income and alternative asset classes
- ETF provider diversity: securities issued by multiple leading managers
When selecting the ETFs, we follow the strategy described here.