Equity Monitor.


Wellguard Equity Monitor

The Wellguard Equity Monitor is aiming at the prevention of significant downward fluctuations in equity portfolios. In this respect, concentration, leverage and liquidity risk are being deeply analysed in order to clearly identify the downward risk. This provides the professional advisor with the capacity to reduce the downward risk in his equity portfolios. A lower downward risk level within the assets over time means a higher final value as well as a more stable relationship with the client.

Wellguard disposes of a database covering 20.000 worldwide traded equities, all of which are linked to the Wellguard Equity Risk Monitor Score (explanation: the Wellguard Equity Risk Monitor Score is the result of a separate analysis of each company, based on a high number of criteria).

The chart below shows the equity value evolution over time with the 30% best scores versus the 30% worst scores. It is remarkable that, concerning the 30% best scores, the downward risk during the financial crisis in 2000 (internet bubble) and in 2008 (banking crisis) is substantially lower, with the result that the final value of the top 30% is over 3 times higher than the 30% worst scores.

 

Vermogensontwikkeling in de tijd van de bedrijven met de 30% beste score versus de 30% slechtste score.

company risk scores


 

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