A few years ago, we began offering the equities portion of our Dynamic Growth Allocations as a standalone tactical strategy, called “Insignia”, providing access to the core equity securities used in the allocations while still being able to dynamically reduce the risk exposure as market conditions changed, just as the Dynamic Growth Allocations do.
As a refresher, the Dynamic Growth Allocations are a blend of equities, fixed income, and alternative assets, and are offered in 5 specific risk categories in order to cover a broad range of Clients. These dynamic allocations use our proprietary market signals (Alpha & Omega) to gauge the risk of the market and make dynamic changes to the risk profile of each of the 5 allocations, adjusting the blend of equities, alternative assets, and fixed income securities, and designed to provide superior risk-adjusted returns than the equivalent benchmark asset allocation. The individual equities selected for the allocations have always been a custom mix of the very best stocks from our Large Cap, Mid Cap, and Small Cap equity models.
However, as Insignia uses the same risk-reduction methodology as the Dynamic Growth allocations, this effectively created a significant amount of overlap with our most aggressive allocation, Dynamic Growth Ultra, with very minimal differences in the risk and return metrics between the two.
Therefore, we have decided to discontinue the tactical version of Insignia, and going forward will offer this custom mix of our three market cap models as a focused (non-tactical) equity model.
Today, we are re-launching our latest focused equity model offering:
The Insignia All-Cap Core Equity Model
The Insignia All Cap Core Equity model focuses on providing a diversified portfolio of Large, Mid, and Small Cap equities, selected from the S&P 1500 Index constituents. The model holds approximately 25-30 stocks at a given time, which we believe provides an appropriate level of diversification across Large, Mid, and Small Cap equities, while still providing the opportunity to generate attractive risk-adjusted returns relative to the benchmark. Our stock selection methodology is based on a foundation of fundamental and data-driven analysis, by which we start with the securities already analyzed and selected for our Large Cap, Mid Cap, and Small Cap equity models, selected from the S&P 500, S&P 400, and S&P 600 indices, and thoroughly analyzed across a variety of quantitative and qualitative factors. We then conduct further evaluation and ranking of the remaining companies, utilizing key financial performance metrics. The model seeks to select companies with a track record of strong financial health and expectations of consistent and stable future growth.
CLICK HERE TO DOWNLOAD THE Q1 2024 FACT SHEET
We look forward to seeing this new standalone model being used by you and your clients! Please reach out to the team with questions.
~Diligently Yours,
Your Smarter Way Portfolio Management Team
For Financial Professional Use Only. Please note this is for information purposes only and should not be construed as investment advice or recommendations made by A Smarter Way to Invest.
