The Segment Tax-Efficient Rising Dividend Strategy invests in US listed companies that have a track record of paying and growing their dividends. The Strategy seeks to be tax-efficient by reducing turnover, deferring capital gains and via tax loss harvesting. The strategy typically consists of 40 to 50 stocks large cap stocks that have dominant market positions and a proven track record of high profitability and free cash flows generation. The strategy is actively managed but with constraints that look to retain some of the advantages of passive investing.
The Exchange-Traded Fund(ETF) Strategy invests in a mix of exchange-traded funds to gain exposure to US and International equity markets. The strategy typically invests in 5-6 core ETFs that make up about 50-70% of the weighting. These core holdings are US focused and resemble the full breadth of the markets, including large-cap, mid-cap, small-cap, value and growth. The remaining 30-50% is invested in about 10 satellite ETFs that are more targeted to specific portions of the US or international markets. The core holdings remain invested for the long-term while the satellite holdings are traded more frequently. A large portion of the satellite holdings are sector ETFs that are picked using technical and fundamental criteria.
The Growth Strategy offers exposure to US listed large and mid-cap stocks. The strategy is actively managed with a target of 30 to 40 holdings across all sectors. Stocks selected offer better growth characteristics and typically prioritize reinvesting cash flows over returning them to shareholders. Selection criteria includes fundamental and technical considerations such as revenue/earnings growth, momentum, valuations, profitability, etc. Each stock weighting is limited to 3.5% at inception and is capped at 7% driven by price performance. Sector weightings are managed to resemble that of the S&P 500 Growth Index. This can lead to outsized holdings in certain sectors such as Information Technology. The strategy has potential to deliver total returns greater the S&P 500 but with lower dividend yields, increased volatility and potentially larger drawdowns.
The Low Volatility Dividend Strategy offers exposure to US listed large and mid-cap stocks. The strategy is actively managed with a target of 30 to 40 holdings across all sectors. Stocks are selected from a universe of high dividend paying companies that have low stock price volatility. Selection criteria includes fundamental and technical considerations such as dividend yield, stock volatility, valuations, business stability, relative performance, cash flow generation, profitability, etc. Each stock weighting is limited to 4% at inception and can grow to 8% driven by price performance. Sector weightings are typically concentrated in the REIT and Utility sectors. The strategy is designed to deliver returns that are less corelated with the S&P 500 and with meaningfully lower risk over time. Dividend yields will be higher than that of the S&P 500 however total returns are likely to be lower.