Our Solutions
Our team has vast experience in analyzing economic data and comprehending future potential, which in turn helps protect and inform our clients’ investments.
Through our extensive industry insights and unparalleled expertise, we’ve created a series of proprietary models based on the maximum risk tolerance of any given investor.
Traditional Portfolios
Designed for early-stage investors looking to accumulate wealth and take higher risk, our traditional portfolios are managed using a process called Global Tactical Asset Allocation (GTAA). This means that we select assets from a broad range of equity markets, fixed income markets and currencies and other alternative asset classes to create a widely diversified portfolio that manages risk and, in turn, leads to optimized returns.
Partially Protected Portfolios
Our partially protected portfolios also use GTAA for stellar diversification and risk/reward management. Each model includes a portion of traditional stock and fixed income allocation in addition to a large percentage of assets that are partially protected against market downturn. These portfolios are based on achieving long-term goals in 5–6-year intervals, and are ideal for mid-cycle investors who want to preserve their savings while facilitating the potential for growth.
Predictable Income Portfolios
For retired investors whose top priority is making their money last, our predictable income portfolios use the strategies similar to massive endowments and pensions to ensure security for individual investors. Also managed with GTAA, these portfolios 1) keep investors’ money in their own name, 2) hand the management responsibilities over to the Institute for Wealth Management, and 3) foster lasting relationships with insurance companies to ensure predictable income for life.
Strategic Portfolios
Global Strategic at a Glance
- Enhanced Portfolio Construction
- Global Diversification
- Reduced Turnover
- Lower Internal Fund Costs
Investor Profile
- Seeking Global Market Exposure Using Lower Cost Funds and Reduced Turnover
- Conservative, Moderate, and Growth Variations Available
Global Portfolios Featuring Low-Cost Funds
The Global Strategic Portfolios managed by The Institute for Wealth are passive, low-cost strategic asset allocation portfolios constructed from the Vanguard family of funds, managed on a discretionary basis. Global Strategic combines enhanced portfolio construction concepts with low-cost securities to capture the long-term performance of a globally-diversified portfolio with exposure to domestic equities, international equities, emerging market equities, fixed income, real estate, commodities, and cash/money market. Periodic rebalancing maintains the discipline of selling winners and buying value.
Global Strategic investors may have a higher probability of success in these portfolios relative to similar, higher expense ratio portfolios over the long run. This management style conducts periodic rebalances to keep portfolios in line with desired investment objectives. The portfolios are organized into three goals and objectives categories, including: Conservative, Moderate, and Growth. Each of the portfolios holds approximately 15-20 fund positions, most appropriate for accounts $100,000 and larger.
MoneyPlus at a Glance
- Diversified Short-Term Fixed Income
- Low Weighted Average-Expense Fund Ratios
- Reduced Turnover
Investor Profile
- Seeks Enhanced Yield within a Risk-Managed Framework
- Defensive to Conservative Investing Objective
- Can Be Blended with More Aggressive Holdings to Reduce Total Portfolio Risk
A Diversified Short-Term Fixed Income Approach
The Institute for Wealth Management’s MoneyPlus Strategy invests solely in cash and fixed income Mutual Funds and Exchange Traded Funds and Notes (ETF/Ns). While seeking a lower term to maturity than traditional bond benchmarks, this strategy may incorporate exposure to cash, U.S. treasuries, government-related debt, corporate bonds, securitized bonds, derivatives and global fixed income securities.
MoneyPlus seeks to manage duration while maximizing income. It incorporates a diversified set of varying maturities and credit qualities, striving to enhance yield within a risk-managed framework. In addition to serving as a standalone strategy for Defensive and Conservative investors, the strategy may also act to reduce total risk as a component within a portfolio containing riskier assets, such as stocks, while also producing yield.
Socially Responsible Investing (SRI) Portfolios at a Glance
- Focus on Risk First, Return Second
- Institutional, Research-Driven
- Global & Alternative Allocations
- Socially Responsible Screens
Investor Profile
- Environmental, Social, and Governance-Minded
- Seeks Diversified Global Exposure
- Conservative, Moderate, and Growth Objective Variations
Global Portfolios for the Environmental, Social & Governance-Minded
As the world grows in its awareness of corporate practices and their impact on society and the environment, The Institute has kept pace with its Socially Responsible Investing (SRI) portfolios for environmental, social, and governance-minded investors (ESG). Although the criteria for selecting appropriate funds can be stringent, The Institute believes that ESG investors ultimately desire the same outcomes that all investors want: potential return on investment. Beyond the necessary screening criteria, ESG investors should expect their manager to address risk first and return second, which is precisely The Institute way.
For these portfolios, The Institute employs the same thorough approach as it does to the construction of all its portfolios. With our SRI portfolios, we incorporate screens guided by Morningstar™ to the security selection process, creating efficient, values-based portfolios.
Tactical Strategies
Aspire Portfolios at a Glance
- Focus on Risk First, Return Second
- Institutional, Research-Driven
- Global & Alternative Allocations
- Works for Smaller Accounts
- Reduced Internal Fund Costs
Investor Profile
- Seeking Global Market Exposure with Downside Protection
- Conservative, Moderate, Moderate Growth, and Growth Variations Available
Global Portfolios with Downside Protection for Smaller Households
The Institute for Wealth believes deeply that smaller households should be able to access portfolios featuring the same best ideas, factor exposures, and oversight as larger clients. The Aspire Portfolios are just such a program, built upon allocations towards our own proprietary dynamic selection models for growth versus value stocks and fixed income, as well as top active fund managers who have performed well in both bull and bear markets.
The Aspire Portfolios are organized into four goals and objectives categories, including: Conservative, Moderate, Moderate Growth, and Growth. Each of the portfolios holds approximately six to eight fund positions. The Aspire Portfolios use a top-down, global, diversified asset allocation approach with tactical overlays to manage risk. They allocate to funds in the world stock, bond, and hedged alternative categories. Capital protective overlays are designed to raise cash when market dynamics indicate a reduction of risk is appropriate.
Sector Rotation at a Glance
- Concentrates on Rising Sectors
- Attempts to Reduce Participation in Bear Markets
- Mechanical System Eliminates Opinion
and Emotions
Investor Profile
- Seeking Above-Average Risk-Adjusted Returns
- Growth Orientation, but Full Spectrum of Objectives Available by Blending with IWM’s MoneyPlus Strategy
Managing Stock Risk by Observing Sector Behavior
The Institute for Wealth’s Sector Rotation Strategy provides a rules-based approach that seeks to preserve capital by closely observing sector behavior and adjusting market exposure accordingly. The program is an active, tactical strategy designed to capture a proportionate share of S&P 500 upside in bull markets, while reducing participation in bear markets by holding above-average cash or money market balances when any of nine tracked sectors is underperforming.
Proprietary quantitative entry and exit criteria are used to manage risk, determine sector weightings, and when to increase or decrease cash/money market balances using Exchange Traded Products. The strategy may be appropriate for investors with a Growth objective and a 3-5 year horizon, although other objectives may be addressed by blending Sector Rotation with IWM’s MoneyPlus Strategy. MoneyPlus invests in cash and fixed income mutual funds and ETPs, featuring a lower duration than traditional bond benchmarks.
GTAA Portfolios at a Glance
- Focus on Risk First, Return Second
- Institutional, Research-Driven
- Go-Anywhere & Diversified Alternative Strategies Focus
Investor Profile
- Seeking Global Tactical Market Exposure with Downside Protection
- Conservative, Moderate, and Growth Variations Available
Go-Anywhere Diversified Tactical Portfolios
Markets are ever evolving. The Institute for Wealth seeks to maximize the reward versus risk ratio of your investments across environments. The Global Tactical Asset Allocation Portfolios (GTAA) are designed to pursue growth while also placing a premium on downside protection through active selection of diversified assets and defensive, lower-correlation strategies according to shifting market dynamics.
GTAA includes three goals and objectives categories, including: Conservative, Moderate, and Growth. Each portfolio holds approximately 20 positions, most appropriate for accounts $100,000 and higher. As a “go-anywhere” approach, GTAA adapts its focus according to our forecast of future outperforming asset classes, sectors, styles, and countries, supplemented by a variety of hedged alternative strategies designed to help mitigate risk, such as long-short, managed futures, and put-write approaches. Finally, a blend of fixed income funds serve to round out the portfolios, providing income while further offsetting equity risk.
Global Alternative at a Glance
- Focus on Risk First, Return Second
- Institutional, Research-Driven
- Go-Anywhere & Diversified Alternative Strategies Focus
Investor Profile
- Seeks Non-Correlation to Equities within a Risk-Managed Framework
- Defensive to Conservative Investing Objective
- Can Be Blended with More Aggressive Holdings to Reduce Total Portfolio Risk
A Diversified Alternative to Traditional Bond-Only Portfolios
Markets are ever evolving and, currently, interest rates are on the rise. The Institute for Wealth seeks to maximize the reward versus risk ratio of your investments across market environments. The Global Alternative strategy takes many of the non-stock correlated components of our Global Tactical Asset Allocation portfolios and provides them as a stand-alone, liquid alternative to traditional bond portfolios while continuing to place a premium on downside protection.
Global Alternative is most appropriate for accounts $50,000 and higher. Through blending a variety of hedged alternative Exchange Trade Product and Mutual Funds designed to help mitigate risk, such as long-short, managed futures and put-write approaches, together with fixed income funds to round out the portfolios, this approach may be blended with more stock-centric holdings. The program thus provides income while offsetting equity risk with reduced interest rate-sensitivity as compared to traditional bond-only portfolios.
Hedging Strategies
Global Alternative at a Glance
- Focus on Risk First, Return Second
- Institutional, Research-Driven
- Go-Anywhere & Diversified Alternative Strategies Focus
Investor Profile
- Seeks Non-Correlation to Equities within a Risk-Managed Framework
- Defensive to Conservative Investing Objective
- Can Be Blended with More Aggressive Holdings to Reduce Total Portfolio Risk
A Diversified Alternative to Traditional Bond-Only Portfolios
Markets are ever evolving and, currently, interest rates are on the rise. The Institute for Wealth seeks to maximize the reward versus risk ratio of your investments across market environments. The Global Alternative strategy takes many of the non-stock correlated components of our Global Tactical Asset Allocation portfolios and provides them as a stand-alone, liquid alternative to traditional bond portfolios while continuing to place a premium on downside protection.
Global Alternative is most appropriate for accounts $50,000 and higher. Through blending a variety of hedged alternative Exchange Trade Product and Mutual Funds designed to help mitigate risk, such as long-short, managed futures and put-write approaches, together with fixed income funds to round out the portfolios, this approach may be blended with more stock-centric holdings. The program thus provides income while offsetting equity risk with reduced interest rate-sensitivity as compared to traditional bond-only portfolios.
Unconstrained at a Glance
- May Hold Long or Inverse Positions
- Attempts to Participate in both Bull & Bear Markets
- Mechanical System Eliminates Opinion
and Emotions
Investor Profile
- Seeking Increased Diversification Through Downside Capture
- Moderate to Growth Orientation
Increasing Diversification Through Downside Capture
The Institute for Wealth’s Unconstrained Long/Short Strategy provides a rules-based approach that seeks to reduce stock market exposure and potentially participate in bear market environments by closely observing sector and bond behavior, and adjusting market exposure accordingly. The program is an active, tactical strategy that starts with our Sector Rotation algorithms, then adds 50% short/inverse exposures for those stock sectors or bond durations, that are quantitatively determined to be weak.
Proprietary quantitative entry and exit criteria are used to manage risk, determine position weightings, and when to increase or decrease long, inverse or money market balances using Mutual Funds and Exchange Traded Products. The strategy may be appropriate for investors with a Moderate to Growth objective and a 3-5 year horizon.
Individual Stocks
I. Cherry Dividend Income
The Dividend Income portfolio includes global companies with a focus on consistent, high-yielding dividends.
II. Cherry International Value
The International portfolio features ex-US stocks with quality dividend characteristics.
III. Cherry Dividend Income
The Dividend Value portfolio is comprised of all US-based companies featuring superior dividend characteristics.
Actively Managed Individual Stock Portfolios
The Institute’s approach to value investing for our clients’ individually managed accounts is “active money management” and can be summarized in one sentence: We “cherry pick” the highest quality companies to buy them at a discount relative to what our analysis indicates.
Value investing was introduced by Benjamin Graham. Graham’s underlying premise was that, as long as there is human psychology involved in the investment decision process, there will always be times of extremes when stocks will be overvalued by “irrational exuberance”, or undervalued by “undue pessimism”. Our approach to value investing treats each investment as a partial ownership of a company’s business and clearly defines the difference between intrinsic value and market value. Using these criteria plus a clear preference for strong dividend payers, we purchase shares of companies for our client portfolios only when they can be acquired with a sufficient margin of safety.
These portfolios are appropriate for investors with a time horizon of five to seven years. As an all stock solution, risk is considered to be “Growth” on its own, but may be appropriately blended as the stock component for diversified portfolios of all tolerances.
Individual Bonds
Objective
The objective of the strategy is to provide a total return orientation to outperform a specific relevant index. The portfolio seeks to preserve capital and enhance current income, with an emphasis on sector allocation and security selection with maturity laddering as opposed to active duration management.
Distinguishing Characteristics
Sectors within corporate bonds are incrementally emphasized or reduced based on their respective returns for the amount of risk taken while achieving diversification. Credit analysis is performed through a top-down and bottom-up process. The top-down, broad macroeconomic environment, and a bottom-up company-specific financial health assessment are considered to optimize the expected performance of the portfolio, given well defined limits on risk.
Objective
This strategy seeks to provide a moderate and sustainable level of current income by investing in government and investment grade corporate bonds with reasonable safety of principal and a predictable level of cash flow. The strategy is intended to be a more stable portion of an overall investment allocation and is primarily utilized to earn income while offsetting volatility from riskier assets such as equities.
Distinguishing Characteristics
The portfolio offers an attractive middle course between short-term instruments, such as money market funds (which usually offer greater stability of principal) and longer-term bond funds (which generally offer higher yields). The strategy is optimized for a forward scenario of rising rates.
Objective
This portfolio seeks to provide a sustainable level of current income that is exempt from applicable personal income taxes. Investments are highquality (investment grade) municipal bonds with regional diversification.
Distinguishing Characteristics
Sectors within municipal bonds are incrementally emphasized or reduced based on their respective returns for the amount of risk taken while achieving diversification. Credit analysis is performed through a top-down and bottom-up process. The top-down, broad macroeconomic environment, and a bottom-up municipality-specific financial health assessment are considered to optimize the expected performance of the portfolio, given well defined limits on risk.
