Investment Planning

 

Portfolio Construction Process

STRATEGY AND CLARITY. BUILT FOR YOU.

Our technology is a quantitative investment tool that analyzes a broad universe of mutual funds and ETFs. It seeks to determine optimal portfolio allocation and is designed to generate positive returns over multiple market cycles. Our disciplined process for portfolio construction is explained below.

Approved List of Securities

1

APPROVED LIST OF SECURITIES.

Securities are chosen from a list of 15,000 that are: liquid, cost competitive, and manufactured by sound companies.

 

Mutual Funds and ETFs are Monitored Daily

5

MUTUAL FUNDS AND ETFs ARE MONITORED DAILY.

Our technology measures mutual fund and ETF prices every day and scrubs them to eliminate capital gains, dividends and any splits to ensure accurate pricing.

Clients Goals are Established

2

CLIENTS GOALS ARE ESTABLISHED.

The advisor and client establish the goals for the portfolio and determine a plan of action.

Mutual Funds and ETFs are Given a Composite Score

6

MUTUAL FUNDS AND ETFs ARE GIVEN A COMPOSITE SCORE.

Each fund/ETF is assigned a composite score over the analysis period to determine what is most productive or what meets the target for volatility depending on the goal.

Risk Profile is Assigned and Investment Strategy is Selected

3

RISK PROFILE IS ASSIGNED AND INVESTMENT STRATEGY IS SELECTED.

The advisor and client select a portfolio strategy based on client goals and risk profiles.

The Most Productive Mutual Funds & ETFs are Selected

7

THE MOST PRODUCTIVE MUTUAL FUNDS & ETFs ARE SELECTED.

The technology can be applied to maximize productivity or manage volatility depending on the goal:

Tactical: Each sleeve seeks to identify maximum productivity while working to minimize downside participation.

Target Volatility: Uses technology to intelligently allocate portfolio holdings to meet specific risk parameters.

Combination: Or combine both based on the client’s needs.

Optimal Securities are Chosen From a List

4

OPTIMAL SECURITIES ARE CHOSEN FROM APPROVED LIST.

Our technology selects optimal securities from the approved list to meet the goal.

 

 

The Technology Difference

 

Our technology utilizes sound mathematics and empowers each piece of the portfolio to identify and move towards productive asset classes or align volatility. Traditional methods often penalize investors with predetermined allocations and prohibit investors from seeking safety in times of market stress.

Traditional Strategic Asset Allocation Approach:

Portfolio is rebalanced by taking from winners and giving to losers.

Portfolios begin with target weightings and are often rebalanced annually to the original targets regardless of market conditions.

Tactical Asset Allocation Process:

Each piece of the portfolio competes with other asset classes or cash to find optimal productivity based on the most current market environment.

A picture containing device Description automatically generated

Unproductive sectors are replaced with those showing the most strength.

Target Volatility Allocation Process:

Portfolios are periodically rebalanced to maintain a suitable risk tolerance as market conditions change.

Asset class weightings are consistently adjusted to reflect current market volatility.