Elevate Your Firm’s Investment Management Capabilities

Precision Risk Assessment for Financial Professionals

This innovative questionnaire delves into your clients’ willingness to take on risk by evaluating their preferences for guarantees vs. probable gambles, choices between sure losses vs. sure gains, and their experience and comfort with risk. By ignoring financial constraints, MyRiskIQ3D focuses purely on the psychological and behavioral aspects of risk tolerance, providing a clearer, more nuanced understanding of each client’s risk profile.

Equip your practice with MyRiskIQ3D and offer your clients a personalized approach to risk management, ensuring their investment strategies align perfectly with their risk tolerance.

Identifying Investment Objectives & Constraints

We begin by defining investment objectives, including understanding the client’s desired rate of return, assessing risk tolerance through tools like MyRiskIQ3D, and identifying constraints such as liquidity needs, time horizon, tax considerations, legal and regulatory factors, and unique preferences like ESG criteria. This comprehensive approach allows us to design customized portfolios that align with each client’s specific goals.

Advisors are welcome to use their own IPS format, however, our IPS process assists Advisors with a thorough evaluation of all aspects of a Clients investment objectives, constraints and overall risk tolerance in order to provide more consistency and alignment in selection of the appropriate investment discipline for Clients. This rigorous approach delivers robust, well-managed investment strategies tailored to Clients’ long-term financial goals.

Individual Security Selection

Each of our focused model portfolios follow the same overarching systematic process for constructing the investment strategy and selecting the securities for the respective model portfolio. Regardless of the model type, our investment process always follow a three-phased approach to ultimately determine the underlying strategy holdings”

Phase 1: Each model starts by identifying and setting a clear Model Objective as well as the corresponding Investment Philosophy that will drive the design of the 4-step security selection process. This guides the determination of the specific criteria used to evaluate securities for each model and helps set the appropriate benchmark for comparison and monitoring purposes.

Phase 2: Next, we apply a Systematic, Data-driven 4-Step Process by which we filter and analyze potential securities to be selected for the strategy. While the process steps remain the same, each of our model portfolios uses a unique set of criteria and analysis methodology for each step which is based on the unique model objective and overarching investment philosophy.

• Step 1) Universe Selection based on Model Objective and Investment Philosophy
• Step 2) Financial Metric Filtering to remove securities that fall outside of criteria
• Step 3) Fundamental Analysis to identify the top securities
• Step 4) Final ranking and selection of securities based on model criteria

Phase 3: All of our models then receive continuous Monitoring, Review, and Reconstitution. We regularly evaluate the models’ performance relative to its comparative benchmark as well as whether it is achieving its stated objective in order to make improvements or adjustments as necessary. While we constantly monitor each model and may make changes for unique or unusual circumstances, the standard timeframe for reconstituting each model is typically monthly, quarterly, semi-annually, or annually, depending on the unique model criteria.

Risk Management

Alpha & Omega are a pair market signals that focus on technical aspects of the equity market using a proprietary algorithmic process to interpret the short-term and long-term trend of the equity markets. The data inputs that they take into consideration include price levels and fluctuations, underlying volume of those price movements, the breadth of market movements (how many of the stocks are responsible for pushing the broad market up or down), monetary indicators such as the yield curve, and qualitative metrics such as market sentiment. All factors combine to provide a Bullish or Bearish forecast for the short-term market outlook (Alpha) and a longer intermediate-term market outlook (Omega). We utilize these signals as inputs for managing risk in our Dynamic Portfolios, positioning them to be more “risk-on” when market conditions are Bullish, and more “risk off” when market conditions are Bearish.

Ongoing Monitoring

Our focused strategies are reconstituted at least semi-annually, and undergo rigorous analysis regularly throughout the year to determine any necessary changes in security holdings.

Our dynamic asset allocations utilize Alpha & Omega, our algorithmic risk management market signals, in order to periodically shift risk exposure in the portfolios to be more “risk-on” or more “risk-off” as market conditions change.

Client Communication

We distribute these communications electronically (via email) directly to Advisors and their end Clients (although Clients may choose to unsubscribe at any time), proving valuable insights and consistent touchpoints, and giving Client’s the peace of mind that their investment management team is constantly monitoring market and economic conditions and keeping a close watch over their investments.