OUR INVESTMENT PROCESS

OUR INVESTMENT

PROCESS

OUR INVESTMENT PROCESS

 

CUSTOM FINANCIAL GLIDE PATH

Our Custom Financial Glide Path takes each of our clients’ stage of life into consideration to create the best outcome they need.

 

We focus on answering these primary questions

  • Do you have a safety net?
  • How much is in your safety net?
  • Do you need current income from this portfolio?
  • How diversified do you want to be?
 

TOROSO PRIVATE WEALTH PROCESS

Using one of Toroso’s core strategies based on your life time horizon, we then add Satellite Investments that enhance the unique needs of each client.

PURPOSE OF THE CORE

  • Creates gravity that holds portfolio together
  • Allows for liquidity to meet life’s demands
  • Slow and steady reduces downside risk
  • Provides cost efficient investing

PURPOSE OF THE SATELLITE

  • Seek higher returns through more volatile opportunities
  • Rebalancing is simplified
  • Allows for opportunistic investments

The right balance between Core/Income and Satellite Investments is specific to you, the client. Your financial success is our only goal.

GETTING “UNDER THE HOOD”

Our in-house developed diagnostic tools provides Toroso the ability to avoid concentrated and uncompensated risk, discover discounts and premiums, find security overlaps, and measure the fundamentals of the entire portfolio.

Using Exchange-Traded Funds (ETFs) allows for precise allocations within asset classes, styles, durations, quality, yields, sectors, and regions, at significantly lower costs, as compared to traditional mutual fund investments.

 

REAL CONVERSATIONS ABOUT GOALS AND NEEDS

We change the conversation away from arbitrary risk assessments to focusing on you, our client. We help you to set targets or goals and track your progress; so that when we conduct periodic reviews, we are not only discussing performance and changing economic conditions, we are making adjustments that are appropriate for the changing personal and economic climate.

 

INVESTMENT PRINCIPLES

Portfolio Construction is completed through two distinct processes:

We approach both from a non-traditional perspective.

ASSET ALLOCATION

Our asset allocation approach offers an alternative to Modern Portfolio Theory (MPT) style portfolios that we find have failed to meet expectations due, in large part, to the increasing correlation of world markets and a disregard for clients’ actual investment time horizons and goals.

SECURITY SELECTION

Our security selection process focuses on understanding the characteristics of the ETFs and choosing securities that we believe can be predictive of future value. Our methodology looks at the interconnections and relative value of the security fundamentals rather than focusing solely on past behavior.
 

SOLUTION BASED ASSET ALLOCATION

Three Distinct Outcomes are the Building Blocks of a Custom Financial Glide Path.

GROWTH

α Growth Goal = Enhanced Equity
 
 
The Toroso Sector Opportunity Strategy strives to outperform the S&P 500 Index while maintaining similar volatility. 80% of the strategy is focused on 3 to 6 US Sectors or Sub-Sectors that have the opportunity to grow faster than the market. The remaining 20% strives to opportunistically enhance up and down market capture, or collect implied volatility premium during sideways markets.

WEALTH PRESERVATION

σ Wealth Preservation Goal = Exceed Inflation
 
 
The Toroso Neutral Strategy is predicated on equal weighting of four asset classes (25% per asset class): Equities, Commodities and other alternatives, Cash equivalents and Bonds that independently thrive in one of four possible economic environments: prosperity, inflation, recession and deflation. The strategy strives to provide low volatility returns that protect clients' purchasing power.

INCOME

% Income Goal = Consistent Yield
 
 
The Toroso Target Income strives to produce targeted yields, similar to owning individual bonds. Through a barbell approach; the portion of the strategy in higher yielding securities is meant to drive the majority of the yield, and the low risk portion is conservative, cash equivalents to allow for the opportunity to tactically increase allocations to higher yielding securities when markets permit.