A pure liquidity reserve designed to maximize stability, optionality and short-term capital preservation.
Asset allocation
History
Cash reserve portfolios are common among households, short-horizon investors and institutions managing near-term liabilities or waiting for better deployment opportunities.
Philosophy
Do not stretch for return. Keep capital liquid, simple and resilient to forced selling. The portfolio accepts low long-term growth in exchange for maximum flexibility and minimal mark-to-market stress.
Performance
Annual rebalancing, local bond and cash proxies where relevant, and optional inflation adjustment through CPI.
CAGR
4.4%
1970-2024
Max drawdown
0.0%
Volatility
3.3%
Worst year
0.0%
2014
Implementation
Global · Cash Reserve Portfolio implementation
Long-term individual investor
Use broad, low-cost funds or ETFs matching each asset class.
Account notes: Implementation depends on local account types and tax wrappers.
Costs: Prefer low-cost, liquid vehicles.
Rebalancing: Annual rebalancing or tolerance bands.
Tax: Country-specific tax treatment should be reviewed before implementation.
Product names are implementation examples for research. Availability, taxation, share classes and suitability should be checked with the investor's broker and tax situation.
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