Investment Philosophy

Investment Philosophy

At Toroso we are focused on our client’s desired outcomes, not proprietary products or off-the-shelf services. That is the reason we have created three diverse sets of strategies that focus on our client’s objectives, life cycles and investment profiles.

Toroso’s asset allocation approach offers an alternative to Modern Portfolio Theory style portfolios that have failed to meet expectations over many decades due, in large part, to the increasing impact of world markets events on portfolios, which disregard investors’ actual life events.

It is no news that an investor’s life events will have a direct impact on their motivations to save, or where to invest. That is the reason we believe that most investors benefit from a professionally managed investment portfolio and not a pre-set glide path.

STRATEGIES

income

Wealth Preservation

A steady, broadly diversified base with reduced volatility on which to build and protect against inflation.

revenue1

Growth

A growth-oriented component that seeks to take advantage of the unpredictable market expansions that can accelerate accumulation.

income1

Income

A portion reserved for providing a ready reserve on which to draw during retirement years.

graph-22c (2)

ETF SELECTION

Toroso’s team believes that security selection is as important as asset allocation. We are experts in Exchange-Traded Funds (ETFs) and prefer them to Mutual Funds. However, with the fast growth and proliferation of ETFs and a lack of industry standards, there is a need to critically evaluate these products in order to obtain solid returns.

Looking “under the hood”

The transparency of ETFs allows us to truly examine them in a microscopic way. The Toroso method examines the interconnections between ETFs and the relative value of each of them, based on its fundamentals, rather than focusing solely on past behavior. So how do we do that? Our experts understand precisely the underlying securities that comprise each ETF and create portfolios that are optimized based on those fundamentals. Additionally, our process includes focusing on minimizing product risks through the assessment of their structures, not just their components.

STRATEGIES

Our strategies can be classified in three broad categories of Growth, Wealth Preservation and Income. Each classification serves a specific goal of the investor. Through the careful analysis and blending of these categories, we provide truly customized approaches to fulfilling our clients’ needs.

Growth Outcomes

Our Growth Strategies are designed to take advantage of the unpredictable market expansions that can accelerate accumulation. In this case, volatility is a secondary concern, but growth over long time horizons is the target outcome. Our strategies are equity-focused, and use specialty ETFs to manage the volatility.

Wealth Preservation Outcomes

For these investment strategies, our models are based on an easy to understand multi-asset class principle that targets five different economic scenarios – neutral, prosperity, recession, inflation and deflation.

These five target portfolios encompass a mix of four clearly defined asset classes that are weighted based on economic views. Through this strategy we ensure that not one adverse economic environment will deplete a client’s portfolio and strives to deliver solid returns with a more balanced risk profile.

Target Income Outcomes

The Target Income Series uses ETFs and other exchange-trade products to create fixed income portfolios intended to behave more like a traditional bond – generating monthly yield and having a target date to return principal.

This is done through a portfolio of exchange-traded products that are combined to simulate traditional bond characteristics, but reduce risk through greater diversification.

PERIODIC PERFORMANCE TABLE

Managing Risk for Long Term Results

table1
table2