Shariah-Compliant Tactical Investing
What is Shariah-compliant investing?
Shariah-compliant investments are considered to be a type of socially responsible investing. Investment funds are governed by the principles of the Islamic religion as well as Shariah law.
Our Key Objectives
Greater upside capture through sustained bull market participation and full equity allocations for long-term, continuous time periods
Less whipsaw by making fewer defensive shifts
Capital preservation in bear markets
Alpha potential from active stock selection
Strategy
The Shariah-compliant Lyons Tactical Allocation Portfolio offers a different approach to tactical investing by focusing on offense first, defense next. The subadvisor seeks to remain fully invested in equities for longer time periods than typical tactical allocation strategies, using a slow-moving, proprietary quantitative risk model each month to measure market risk and determine portfolio allocation. While fully invested, the portfolio holds a concentrated basket of U.S. dividend-paying stocks selected for various characteristics including company performance and relative valuation. Full equity allocations are expected to remain continuous for multi-year periods. If the risk model generates a defensive signal, indicating the expectation of prolonged and extreme market risk, the portfolio shifts fully to U.S. Treasuries bills and notes. Defensive shifts are expected to be rare, but may be held longer than typical tactical allocation strategies.
Portfolio Data: As of 12/31/2020
Months on Offense: 92
Months on Defense: 13
Defensive Shifts: 1
Weighted Avg Market Cap (Bil): $214.5
Average Dividend Yield: 1.56%
Up Capture: 104.4%
Down Capture: 90.8%
Alpha: 3.50%
Information Ratio: 0.17
Sharpe Ratio: 0.75
Sortino Ratio: 1.21
Top Equity Holdings: As of 12/31/20
Darden Restaurants: 5.4%
HCA Healthcare: 5.3%
Ubiquiti Inc.: 4.8%
Starbucks Corporation: 4.6%
Target Corporation: 4.6%
UnitedHealth Group: 4.4%
Honeywell International: 4.4%
Dollar General: 4.4%
TJX Companies: 3.9%
KLA Corporation: 3.8%
Portfolio holdings are subject to change and should not be considered to be investment advice.
About Lyons Wealth
Lyons is a U.S. SEC-registered investment advisor based in Winter Park, Florida, and serves as an asset manager and sub-advisor to a broad range of clients and investment professionals. The firm's tactical strategy has won three Lipper Fund Awards in a span of four years as the number one fund in the Flexible Portfolio category for two 5-year terms and one 3-year term. For more information and disclosure, please visit www.lyonswealth.com.
Risk Considerations
Regulator: This product has not been reviewed by any financial regulator, including the SFC in HK, the SEC in the US, or the Cayman Islands Monetary Authority (CIMA). This product is not marketed to the general public.
Key Risks:
Market risk: the risk that the investments fails to performs as expected and sells for a below expectation profit or even a loss.
Exchange rate risk: Risk that exchange rates reduce returns in an investor’s currency terms.
Tax risk: The risk that unforeseen taxes or changes to taxes reduce returns.
Legal risk: the risk the vehicle (later) breaches a local or international law.
Lyons Wealth Management (“LWM”) began formally tracking its portfolio performance as of April 2nd, 2012. Portfolio composite returns are preliminary and are presented on a time-weighted, size-weighted total return basis using monthly portfolio valuations. The composite returns presented herein include all eligible LWM accounts. To be eligible for inclusion in the LWM composite, an account must be fee paying, fully discretionary, and not part of a broker wrap program. New portfolios that are managed to the Tactical Allocation Portfolio investment strategy and meet the composite definition will be added to the composite when fully invested. The composite is not representative of all accounts managed by LWM. All returns are expressed in U.S. Dollars and are presented net of all fees and expenses. The returns reflect the reinvestment of all dividends and interest. The return information presented herein has not been audited or otherwise verified by an independent accounting firm, and past performance of any LWM portfolio does not guarantee future results.