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

Wealth Preservation

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

Growth

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

Income

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

ETF SELECTION

Toroso’s team believes that security selection is as important as asset allocation. We are specialized team 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 ETF specialized team 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.

PERIODIC PERFORMANCE TABLE

Managing Risk for Long Term Results

As of September 30st, 2017