Legacy Portfolios

Legacy Portfolios were created to offer investors a long term and simple, yet very effective way of capturing the returns of the capital markets.  These models are static in nature and only require trading to periodically rebalance.

Current List of Legacy Portfolio Models

Equity

  • U.S. Equity
  • U.S. Equity Income
  • Global Equity Income

Fixed Income

  • U.S. Fixed Income
  • U.S. Enhanced Fixed Income

Unlike many asset management platforms which offer balanced portfolios, we have segregated the various equity and fixed income models to allow investors the ability to select their own desired weights.

For example, an investor looking for conservative growth portfolio may select to place 60% into U.S. Equity Income and 40% into U.S. Enhanced Fixed Income.

Factor Portfolios

A factor is any characteristic that helps explain the long-term risk and return performance of an asset class. Factors are well documented in academic research and have been used extensively in portfolio risk models and in quantitative investment strategies. These are the same variables that active fund managers have used in their security selection and portfolio construction process.

Factor investing is not new; it has long been used in quantitative investment strategies. Factor investing seeks to capture higher risk adjusted returns via systematic exposure to stock characteristics. Over the years, both the academic world and the investment industry have identified 6 individual factors that have historically delivered out-performance relative to the broad stock market.

These six factors are:

Value – Investing in relatively inexpensive stocks
Momentum – Investing in stocks with positive price movement
Quality – Investing in quality companies with sound balance sheets
Smaller Size Companies – Investing in small and mid-sized companies
Dividend Yield – Investing in companies with above average cash flow payout
Low Volatility Stocks – Investing in lower beta stocks

Below is detailed information on these six factors. In constructing individual portfolios for clients, we strive to capture at least three of these factors.

CLICK BELOW TO LEARN MORE ABOUT THE FACTORS:

Current List of Factor Portfolio Models

Equity

  • DFA Global 100
  • DFA Global 100 ST
  • DFA U.S. 100
  • VMQ (Value, Momentum, & Quality)
  • Quality Equity Income
  • MV Equity Income

Fixed Income

  • U.S. Fixed Income
  • U.S. Enhanced Fixed Income

 

In addition to these models, all models offered by FPL Capital can be utilized on the platform.

Tactical Portfolio

We realize that sometimes the simply buy and hold approach may not yield the best outcome.

Historically there have been various quantitative strategies that have produced excess returns to the broad market.

Because these strategies typically require trading positions in the portfolio for periods less than one year, they are not tax efficient.  In some cases, this may make the tactical strategy unattractive for a taxable account.  However, this is an irrelevant issue for tax deferred and tax-free accounts.

We have found that in today’s capital market environment, the universe of low cost and highly liquid ETFs provides efficient vehicles to use in tactical models.

Contact us to learn more about the various models available.

Some of the models available are from third party research groups and an additional license fee may apply.