Navigating the Road of Financial Planning
Active Enhanced Equity Index
West Chester Capital Advisors, Inc. employs an active enhanced equity index methodology. Our methodology is an intentional temporary percentage deviation from the S&P 500 Index position, made with an eye towards increasing expected return, reducing risk, or both.
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Our goal is to generate consistent, above-market performance results.
We utilize a proprietary quantitative and fundamental screening/scoring methodology along with access to external research services to facilitate our decision-making process.
Our enhanced equity index methodology seeks to enhance performance by allocating a portion of the portfolio toward the economic sector(s), market segment(s) or geographical location(s) that are identified as offering above benchmark market performance opportunities.
We will maintain a significant position in the S&P 500 Index (passive allocation – 50% minimum) while augmenting the portfolio with modest exposure to favored economic sectors, market segments or countries. The discipline can utilize individual assets, mutual and exchange traded funds.
Our goal is to generate consistent, above market performance results while combining the favorable elements of active and passive, indexing styles of managing an equity portfolio. West Chester Capital Advisors incorporates a systematic, disciplined approach to asset selection and portfolio construction. We incorporate the time-tested AmeriServ Premier Equity Discipline Model® in the management of our tactical active enhanced equity index.
Our methodology institutes a very disciplined and regimented approach to security selection. We continuously evaluate, assess and scrutinize every position. All purchase and retention decisions are compared to the core, benchmark S&P 500 Index position. Distinguishing attributes of the Active Enhanced Equity Index are presented below:
Active Enhanced Equity Index Discipline
- Core position in equity benchmark S&P 500 Index (Index Fund or Index ETF)
- Low cost and above average relative return
- Deliver consistent, replicable and reliable results
- Utilize external research services to identify favored assets, economic sectors and segments
- Utilize AmeriServ Premier Equity Discipline Model® for tactical equity allocation decisions
- Specific buy/sell discipline
- Diversify by economic sector, market segment and geographic location
- Rigorous due diligence review and assessment process for existing positions
- All holdings continuously scrutinized and assessed against passive benchmark position
The Disciplines’ objective is to deliver consistent, replicable and – most importantly – reliable performance results.
Indexing, by definition, provides returns that keep pace with the market being tracked. Therefore, a significant portion of the portfolio will perform as well as the market, which has out-performed a vast majority of equity fund managers over the long-term. The indexed return will be enhanced if the favored assets. sectors/market segments/countries generate above market results.
We leverage the extensive global resources of several reputable research services to adjust our strategies over time based on economic and market trends. The process offers objective, easily understood reasons which support the discipline’s positions.
Past performance is no guarantee of future results.