Allocations

Dynamically managed portfolios designed to reduce risk when market conditions are less than ideal

Allocations

Dynamically managed portfolios designed to reduce risk when market conditions are less than ideal

Our Active Management Process

While each model has some level of management inherent in its investment mandate, each of those only provides minimal risk reduction. We add another layer of management at the allocation level to further protect assets during periods of market uncertainty. When we deem it appropriate based on market conditions, we alter the model weightings within an allocation and reduce overall risk. If all of our investment signals indicate uncertainty, we will reduce each allocation’s equity exposure by 50%. For example, allocations normally invested in 100% equity-based models would be reduced to 50% equity-based models while allocations normally at 70% equity exposure would be reduced to 35% equity exposure. Funds are redirected to non-correlated asset classes including fixed income, cash, gold, and commodities. Once our indicators begin to signal that market conditions have improved, we will reposition the allocations at their original weightings.

Our Algorithms

Alpha/Omega

This pair of algorithms created and managed by Titan Capital Management focus on technical aspects of the equity market to interpret the short-term and long-term trend of the S&P 500. The data that it takes into consideration include price levels and fluctuations, underlying volume of those price movements, the breadth of up and down moves (how many of the stocks in the index are responsible for pushing the index up or down), and market sentiment. All factors combine to provide a bullish or bearish signal for the short and long-term.

CIGNX

While Alpha and Omega focus on technical factors, CIGNX aims to measure the economic environment underlying the market. We analyze fundamental data points that measure levels of business investment, consumer sentiment, and monetary policy measures to name a few. The trend that we see in each data point generates a number to show its current strength relative to its past. These individual numbers are aggregated into one single figure that gives us a quick measure of the economy’s overall health.

In Combination

We use Alpha and Omega in combination with CIGNX when making allocation level changes. By combining technical and fundamental indicators, we can get a better idea of what may lie ahead. Alpha and Omega provide a signal that the stock market environment is either favorable or not, and CIGNX helps confirm that the economic trend supports that interpretation. If any two signals point to uncertainty, we will begin to reduce risk exposure in our allocations. If the third one follows suit, we will reduce each allocation’s equity exposure by 50% as outlined above. A similar discipline is followed when conditions begin to improve. When two signals indicate a favorable investment environment, we increase exposure to equity models and when the third one changes, we reinstate the maximum equity exposure for each allocation.

Our Allocations

Our clients’ portfolios are typically invested in one of our pre-built allocations. These are simply an aggregation of the various models that we offer designed to provide diversification and risk management. For clients whose objectives don’t fit nicely into one of the existing allocations below, we can instead invest in individual models at custom weightings. What follows is a list of the various allocation groups that we offer and an explanation of what types of investors they are tailored for.

Growth Allocations

Components:

  • Large, Mid and Small Cap
  • Two rotating motifs
  • Hedge
  • Titan Capital Management Ultra OR Growth
  • High OR Diversified Fixed Income

Objective:

Our Growth allocations are focused on capital appreciation and are best suited for clients with a long investment horizon. Clients looking to begin taking income from their portfolio in the short-term might be better suited in the Income or Blend models. There are a wide range of Riskalyze scores represented in the growth models, so even moderate to conservative investors will have a suitable choice within this category

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

65

Equity/Fixed Income/Alternative %

100/0/0

Risk Score

65

Equity/Fixed Income/Alternative %

100/0/0

Risk Score

40

Equity/Fixed Income/Alternative %

50/30/20

Risk Score

40

Equity/Fixed Income/Alternative %

50/30/20

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

57

Equity/Fixed Income/Alternative %

90/10/0

Risk Score

37

Equity/Fixed Income/Alternative %

45/33/22

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility


Risk Score

51

Equity/Fixed Income/Alternative %

80/20/0

Risk Score

35

Equity/Fixed Income/Alternative %

40/36/24

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

45

Equity/Fixed Income/Alternative %

70/30/0

Risk Score

33

Equity/Fixed Income/Alternative %

35/39/26

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

39

Equity/Fixed Income/Alternative %

60/40/0

Risk Score

32

Equity/Fixed Income/Alternative %

30/42/28

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

65

Equity/Fixed Income/Alternative %

100/0/0

Risk Score

65

Equity/Fixed Income/Alternative %

100/0/0

Risk Score

40

Equity/Fixed Income/Alternative %

50/30/20

Risk Score

40

Equity/Fixed Income/Alternative %

50/30/20

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

57

Equity/Fixed Income/Alternative %

90/10/0

Risk Score

37

Equity/Fixed Income/Alternative %

45/33/22

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility


Risk Score

51

Equity/Fixed Income/Alternative %

80/20/0

Risk Score

35

Equity/Fixed Income/Alternative %

40/36/24

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

45

Equity/Fixed Income/Alternative %

70/30/0

Risk Score

33

Equity/Fixed Income/Alternative %

35/39/26

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

39

Equity/Fixed Income/Alternative %

60/40/0

Risk Score

32

Equity/Fixed Income/Alternative %

30/42/28

Income Allocations

Components:

  • Dividend Growth
  • High Yield
  • High Yield II
  • Fixed, Diversified, OR Stable Fixed Income

Objective:

The Income allocations primarily focus on generating a stream of dividend income for investors making regular withdrawals from their investment account. These dividends can help offset some of the need to liquidate principal. Younger investors can benefit from reinvesting dividends and increasing the dividend growth rate already present for greater income in the future. While these allocations will still generate capital appreciation, more aggressive investors looking for primarily upside potential would be better suited in the Growth or Blend allocations.

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

 

Risk Score

68

Equity/Fixed Income/Alternative %

90/10/0

 

Risk Score

50

Equity/Fixed Income/Alternative %

60/24/16

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

 

Risk Score

58

Equity/Fixed Income/Alternative %

75/25/0

 

Risk Score

45

Equity/Fixed Income/Alternative %

30/70/0

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

48

Equity/Fixed Income/Alternative %

60/40/0

Risk Score

40

Equity/Fixed Income/Alternative %

40/36/24

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

38

Equity/Fixed Income/Alternative %

45/55/0

Risk Score

36

Equity/Fixed Income/Alternative %

30/42/28

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

 

 

Risk Score

29

Equity/Fixed Income/Alternative %

30/70/0

 

 

Risk Score

32

Equity/Fixed Income/Alternative %

20/50/30

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

 

Risk Score

68

Equity/Fixed Income/Alternative %

90/10/0

 

Risk Score

50

Equity/Fixed Income/Alternative %

60/24/16

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

 

Risk Score

58

Equity/Fixed Income/Alternative %

75/25/0

 

Risk Score

45

Equity/Fixed Income/Alternative %

30/70/0

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

48

Equity/Fixed Income/Alternative %

60/40/0

Risk Score

40

Equity/Fixed Income/Alternative %

40/36/24

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

38

Equity/Fixed Income/Alternative %

45/55/0

Risk Score

36

Equity/Fixed Income/Alternative %

30/42/28

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

 

 

Risk Score

29

Equity/Fixed Income/Alternative %

30/70/0

 

 

Risk Score

32

Equity/Fixed Income/Alternative %

20/50/30

Blend Allocations

Components:

  • Large, Mid, and Small Cap
  • Hedge
  • Dividend Growth
  • High Yield
  • Titan Capital Management Ultra OR Growth
  • High OR Diversified Fixed Income

Objective:

The Blend allocations offer a mixture of the capital appreciation potential provided by the Growth allocations with the dividend focus of the Income allocations. These provide more potential for growth than the Income models which comes from the leverage built into the Large/Mid/Small Cap and Hedge models. However, there is still a modest stream of dividends provided by the Dividend Growth, High Yield, and Income models. These allocations are ideal for clients who are still focused on growth in their portfolio, but can also see retirement approaching and want to start building a stream of rising dividends for it. As with the other two categories, our Blend allocations come in a wide array of risk tolerances.

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

61

Equity/Fixed Income/Alternative %

100/0/0

Risk Score

38

Equity/Fixed Income/Alternative %

50/30/20

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

52

Equity/Fixed Income/Alternative %

85/15/0

Risk Score

35

Equity/Fixed Income/Alternative %

42/35/23

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

43

Equity/Fixed Income/Alternative %

70/30/0

Risk Score

32

Equity/Fixed Income/Alternative %

35/39/26

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

35

Equity/Fixed Income/Alternative %

55/45/0

Risk Score

30

Equity/Fixed Income/Alternative %

28/44/28

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

29

Equity/Fixed Income/Alternative %

40/60/0

Risk Score

29

Equity/Fixed Income/Alternative %

20/50/30

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

61

Equity/Fixed Income/Alternative %

100/0/0

Risk Score

38

Equity/Fixed Income/Alternative %

50/30/20

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

52

Equity/Fixed Income/Alternative %

85/15/0

Risk Score

35

Equity/Fixed Income/Alternative %

42/35/23

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

43

Equity/Fixed Income/Alternative %

70/30/0

Risk Score

32

Equity/Fixed Income/Alternative %

35/39/26

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

35

Equity/Fixed Income/Alternative %

55/45/0

Risk Score

30

Equity/Fixed Income/Alternative %

28/44/28

Favorable Market Conditions

  • Data indicates positive market sentiment
  • Invest for growth conditions

Uncertain Market Conditions

  • Data is mixed or indicates negative market sentiment
  • Holdings diversified into non-correlated asset classes to minimize volatility

Risk Score

29

Equity/Fixed Income/Alternative %

40/60/0

Risk Score

29

Equity/Fixed Income/Alternative %

20/50/30

Lets Connect!

Enter your email address below to have one of our Business Development Advisors connect with you.

© 2017 A Smarter Way To Invest Web Design by EliteAMG