Investing With Pure

Evidence-Based Investing

Pure Portfolios adheres to Evidence-Based Investing principles. We define Evidence-Based Investing as the relentless pursuit of what works. We are interested in facts, not a narrative.

 

As Evidence-Based Investors, we believe:

  • Low cost investing can result in higher returns

  • Tax efficiency can boost returns

  • Active management has a place in portfolios, but paying a premium for the hope of outperformance does not work

  • Adopting a rules-based approach to investment management can reduce human bias

  • Humans have blind spots, emotional & cognitive biases, that can lead to poor investment outcomes

  • Fee structures should be connected to client outcomes

 

Evidence-Based Investing is a passion for learning, improving, and optimizing our process.

Portfolio Construction

Pure Portfolios utilizes an asset allocation framework using exchange traded funds (ETFs) to build core positions. We can add individual equity strategies to target themes or client values (environmental, corporate governance, diversity, etc.) 

For tax sensitive clients or those that want to include or exclude certain sectors, Pure Portfolios uses direct indexing strategies to customize portfolios. 

Pure Portfolios manages all of the assets in-house. We do not use third-party active managers to gain market exposure. This helps lower the cost of investing, increase tax efficiency, and track risk exposures. 

Ongoing Portfolio Management

In addition to keeping portfolios in-line with target allocations, we also:

  • Rebalance monthly using trend, momentum, and other rules-based screens to reduce/add risk and mitigate human bias.

  • Stress portfolios for adverse market environments to understand range of potential outcomes.

  • Run cross-asset correlation reports to better understand how our holdings move in relation to each other. These relationships change over time, especially during times of market stress.

  • Track standard deviation (risk) and drawdowns across all of our models and client accounts. This helps us provide context to our investment performance.

We believe creating our own original blog content, podcast, explainer videos, and capital market commentary makes us better investors. 

Performance Fee

By connecting our management fees with investment performance, we draw a clear line between our compensation and client outcomes. If Pure does not meet a set hurdle rate (which will depend on the client’s investment objective) fees will be reduced by 25% for the next calendar year.

Let's get back to the fundamental reason clients hire a wealth manager; to grow their wealth.

Note: Pure does not take an additional fee for upside performance.

Cost of Investing

Pure Portfolios believes the “all-in” cost of investment management is too high, directly resulting in lower returns for investors.

Introducing Drive-Zero Investing.

Our effort to drive the cost of owning assets to zero. We do this by in-sourcing the investment management. We do not allocate client assets to third party managers, mutual funds, or other outsourced solutions. We build portfolios using low cost ETFs (Vanguard, Schwab, iShares), individual equities and fixed income. This lowers the cost of investing, provides greater tax efficiency, and we know precisely what we own.