MACRO Dividend Portfolio Shows Continued Success

MACRO Consulting Group

The well-respected investment research company, Morningstar, recently updated the performance data for the MACRO Dividend Portfolio and we are pleased to announce that the portfolio shows continued success, maintaining positive risk-adjusted returns as measured by the portfolio’s alpha.

According to the latest Morningstar report,1 the MACRO Dividend Portfolio continues to maintain the Five-Star Overall Morningstar Rating™ that it initially earned in 2018. It also upholds Five-Star Morningstar Ratings for both the 3-year and 5-year time periods. The Morningstar Rating is based on a risk-adjusted return measure that accounts for variations in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Only the top 10% of accounts in each category receive five stars.2

The MACRO Dividend Portfolio is a diversified U.S. listed equity portfolio focused on total return through a combination of dividend income and capital appreciation. When many prominent large cap indices were down several percentage points in 2018, the MACRO Dividend Portfolio was down less than 1%. For 2019, the portfolio outperformed nicely on a risk-adjusted basis, especially during difficult months such as May and August and ended the year with positive risk-adjusted returns.

The investment philosophy behind the portfolio is that stock returns, all else equal, tend to follow earnings and cash flows over time. As such, we seek reasonably valued companies that can grow earnings, return cash flows to shareholders, and reinvest excess cash in their existing businesses.

MACRO Consulting Group is proud of the investment strategies and experience we bring to our clients. In addition to maintaining our investment discipline in our Dividend Portfolio, we act thoughtfully and deliberately to construct portfolios that fit each client’s unique circumstances and strike the optimal balance between total return, risk management, and efficient portfolio implementation.

We focus on factors we believe produce favorable outcomes for our clients over time:

  • A consistent and deliberate investment process focused on long term, strategic investment decisions
  • A contrarian, value, and evidence-based selection process
  • Diligence in keeping costs low by focusing on the underlying expenses of an investment and seeking efficient implementation
  • Matching appropriate allocation with client’s risk tolerance and time horizon
  • Clear communication with our clients to define expectations and increase the client’s understanding of their investment

If you are interested in learning more about MACRO Consulting Group’s Investment Management, contact us today.

1. Dated December 31, 2019
2. The Morningstar Rating is calculated on a quarterly basis for separate accounts with at least a three-year history. It is calculated based on a Morningstar risk-adjusted Return measure that accounts for variation in a separate account’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of separate accounts in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. The Overall Morningstar Rating for a separate account is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. Morningstar will not calculate ratings for categories or time periods that contain fewer than five separate accounts.

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