ESSENTIALS
Essential strategies are standardized investment models created and managed by Intrua’s team. These strategies are available as a core offering for clients who are part of Intrua, providing a cost-effective way to access sophisticated investment options. These strategies tend to be more streamlined and follow proven approaches.
Strategy Sets
Core Asset Allocation
| Management Style | U.S. Core | Total Return | Focused Income |
|---|---|---|---|
| Objectives | Primarily invested in core U.S. equity and bond markets, with limited exposure to international markets. | Primarily invested in core U.S. and international equity and bond markets. | Primarily invested in core U.S. equity and markets, with limited exposure to international markets. |
| Client Preference | Prefer performance that tracks closer to that of U.S. markets. | Prefer a broader, global investment opportunity set. Willing to accept performance that is different than that of core U.S. markets. | Prefer to generate income a diversified way, while having capital appreciation potential. |
| Asset Classes/Alternatives | Core Asset Classes | Core Asset Classes | Core Asset Classes |
| Active Trading | Lower | Lower | Higher |
| Tactical Risk Adjustments | Annual | Annual | Annual |
| Portfolios Available | Conservative - Aggressive | Conservative - Aggressive | Conservative - Aggressive |
Core Tactical
| Management Style | Preserve & Participate* | Dynamic |
|---|---|---|
| Objectives | Primarily invested in U.S. based sector and index ETFs. The strategy is tactical in nature, with large potential holdings changes monthly based on the best anticipated combination of risk-reward. | Primarily invested in U.S. based sector ETFs, index ETFs, and liquid alternatives. The strategy is tactical in nature, with large potential holdings changes quarterly based on the best anticipated combination of risk-reward. |
| Client Preference | Prefer tactically managed strategies that utilize quantitative methodologies for portfolio management. | Prefer tactically managed strategies with a lower correlation to broader market that utilizes quantitative methodologies for portfolio management. |
| Asset Classes/Alternatives | Index & Sector ETFs | Index & Sector ETFs, Liquid Alternatives |
| Active Trading | Low | Moderate |
| Tactical Risk Adjustments | High | High |
| Portfolios Available | Conservative - Aggressive Growth | Conservative - Aggressive Growth |
Strategy Summaries
DYNAMIC
Investors that prefer a more active management style that is quantitatively driven.
This strategy is intended to serve as core exposure and can be implemented in a single account or across a multiaccount portfolio.
$50,000
1.75%
STRATEGY OBJECTIVES
The Dynamic portfolio is intended to provide long-term excess returns overall risk adjusted benchmark through the use of dynamic management.
Customized portfolio management
Tailoring investment strategies to individual client needs and risk profiles
Proactive risk management
Implementing robust risk mitigation techniques to protect portfolio value
Emphasis on long-term growth
Focusing on sustainable, consistent returns over the course of market cycles
Adaptive asset allocation
Dynamically adjusting asset mix to capitalize on market opportunities
METHODOLOGY
The Dynamic portfolio starts with a broad universe of potential holdings that include (but are not limited to) equities, fixed income, macro, and trend following strategies. Utilizing an advanced quantitative system, we run ~50,000 potential portfolios, each with unique risk and reward characteristics. From there, we choose the combination of holdings that have the best combined risk adjusted returns. This optimization is run on a quarterly basis with the goal of adapting to every change in market conditions. Through the use of advanced math, we aim to provide more robust portfolios for investors that maximize potential reward for every unit of risk taken.
PORTFOLIO STRATEGY
This strategy contains a diversified blend of asset classes, almost exclusively in ETF and Mutual Fund wrappers. These asset classes include, but are not limited to: US Equity, International Equity, International Bond, Domestic Bond, Macro Strat, Trend Following, and Commodities.
THE ADVANTAGE
Unlike traditional ‘asset allocation’ models, the Dynamic strategy does not manage to a ‘benchmark’. Rather, this strategy employs unique combinations of holdings for every risk tolerance. We believe this provides a more accurate understanding of the risks we are taking and then maximizes the reward. The old adage of ‘time in the market, not timing the market’ largely rings true in this strategy. However, we also believe that if you have better brakes, you can drive a faster car. Therefore, we employ a risk overlay system that combines the total risk of each portfolio, and then, based on the combined volatility, will increase or decrease risk based on market conditions. The primary driver of this is volatility. When markets become very volatile, we reduce risk (based on predefined thresholds). When things are calm in the market (low volatility), we remain fully invested. In summary, we believe that by utilizing better math, we can create better portfolios for investors.
OPTIONS FOR A RANGE OF INVESTORS
Five tactically diversified portfolios that seek different levels of risk and return, along with the option to choose between tax-aware and non tax-aware models.
FOCUSED INCOME
Investors seeking diversified exposure to income-generating asset classes and strategies with less of a focus on capital appreciation. The Focused Income - Ultra-Conservative portfolio may be suitable for investors seeking a diversified allocation to credit-sensitive bond strategies without the need for equity exposure.
The Focused Income Portfolios are structured to provide diversified exposure to income-generating asset classes and strategies. The portfolios can be implemented in a single- or multi-sleeved account. The portfolios are available at Ultra-Conservative, Conservative, Moderately Conservative, Moderate, Moderately Aggressive and Aggressive risk levels.
$25,000
1.75%
STRATEGY OBJECTIVES
The Focused Income Portfolios are designed with a primary objective of delivering high income, while pursuing capital appreciation as a secondary goal. The portfolios are managed to a target risk profile with disciplined periodic rebalancing, without top-down tactical shifts directed by the Investment Committee.
Income generation
Focuses on delivering steady income streams from a diversified array of high-yielding assets
Diversified exposure
Portfolio is constructed with investments in US Equity, Real Estate Securities, High Yield Bonds, and more
Consistent returns
Prioritizes consistent returns from income-generating assets over capital appreciation
METHODOLOGY
The Focused Income Portfolios are long-term, strategic, diversified asset allocation strategies. The portfolios are allocated across income-generating U.S. and international equities and bonds through allocations to mutual funds and exchange-traded funds (ETFs). To construct the portfolios, we perform rigorous bottom-up due diligence on investment managers across asset classes and strategies, focusing on philosophy, process, and performance consistency. Quantitative screening identifies managers with persistent performance profiles, while qualitative research uncovers the true drivers of success and risks of potential underperformance. Each selected manager must demonstrate a distinct edge and strategy that aligns with the specific needs of the portfolios.
PORTFOLIO STRATEGY
The Focused Income Portfolios are designed to emphasize income generation by investing across a diversified mix of equity and fixed income securities through mutual funds and exchange traded funds (ETFs). The portfolios are allocated across dividend-paying equities, option income strategies, real estate securities, investment grade bonds, high yield bonds, emerging markets debt, closed-end funds, tactical income and other income-generating assets and strategies.
THE ADVANTAGE
Research has shown that strategic asset allocation explains most of the variability in portfolio returns over time. The Focused Income portfolios are thoughtfully constructed to provide consistency in allocations and risk profiles to help manage expectations of potential performance through different market environments. The portfolios are not driven by top-down tactical decisions from the Investment Committee; instead, we focus on adding value through rigorous bottom-up due diligence and selection of third-party investment managers, with tactical positioning delegated to those managers. This structure results in diversification of tactical management, less portfolio trading overall, and potentially greater tax efficiencies over time.
U.S. CORE/U.S. CORE ETF
Investors seeking diversified exposure to U.S. equity and bond markets.
This U.S. Core Portfolios are structured to provide investment exposure to core U.S. equity and bond markets. The portfolios can be implemented in a single- or multi-sleeved account. The portfolios are available at Conservative, Moderately Conservative, Moderate, Moderately Aggressive and Aggressive risk levels. Municipal bond-focused strategies are also available.
$25,000
1.75%
STRATEGY OBJECTIVES
The U.S. Core Portfolios seek to deliver long-term investment performance through diversified, strategic allocations to U.S. equities and bonds. The portfolios are managed to a target risk profile with disciplined periodic rebalancing, without top-down tactical shifts directed by the Investment Committee.
METHODOLOGY
The U.S. Core Portfolios are long-term, strategic, diversified asset allocation strategies. The portfolios are primarily focused on investing in U.S. equities and bonds by allocating across mutual funds and/or exchange traded funds (ETFs). To construct the portfolios, we perform rigorous bottom-up due diligence on investment managers across asset classes and strategies, focusing on philosophy, process, and performance consistency. Quantitative screening identifies managers with persistent performance profiles, while qualitative research uncovers the true drivers of success and risks of potential underperformance. Each selected manager must demonstrate a distinct edge and strategy that aligns with the specific needs of the portfolios.
PORTFOLIO STRATEGY
The portfolios are diversified across U.S. equities and bonds, utilizing a mix of actively- and passively-managed mutual funds and/or exchange traded funds (ETFs).
THE ADVANTAGE
Research has shown that strategic asset allocation explains most of the variability in portfolio returns over time. The U.S. Core Portfolios are thoughtfully constructed to provide consistency in allocations and risk profiles to help manage expectations of potential performance through different market environments. The portfolios are not driven by top-down tactical decisions from the Investment Committee; instead, we focus on adding value through rigorous bottom-up due diligence and selection of third-party investment managers, with tactical positioning delegated to those managers. This structure results in diversification of tactical management, less portfolio trading overall, and potentially greater tax efficiencies over time.
TOTAL RETURN/TOTAL RETURN ETF
Investors seeking diversified exposure to U.S. and international equities and bonds, with an additional income component.
The Total Return Portfolios are structured to provide diversified investment exposure to U.S. and international equity and bond markets. The portfolios can be implemented in a single- or multi-sleeved account. The portfolios are available at Conservative, Moderately Conservative, Moderate, Moderately Aggressive and Aggressive risk levels. Municipal bond-focused strategies are also available.
$25,000
1.75%
STRATEGY OBJECTIVES
The Total Return Portfolios seek to deliver long-term investment performance through diversified, strategic allocations to U.S. and international equities and bonds, with an additional component allocated to income-generating assets. The portfolios are managed to a target risk profile with disciplined periodic rebalancing, without top-down tactical shifts directed by the Investment Committee.
METHODOLOGY
The Total Return Portfolios are long-term, strategic, diversified asset allocation strategies. The portfolios are primarily focused on investing in U.S. and international equities and bonds by allocating across mutual funds and/or exchange traded funds (ETFs). To construct the portfolios, we perform rigorous bottom-up due diligence on investment managers across asset classes and strategies, focusing on philosophy, process, and performance consistency. Quantitative screening identifies managers with persistent performance profiles, while qualitative research uncovers the true drivers of success and risks of potential underperformance. Each selected manager must demonstrate a distinct edge and strategy that aligns with the specific needs of the portfolios.
PORTFOLIO STRATEGY
The portfolios are diversified across U.S. and international equities and bonds, with additional exposure to higher income-generating asset classes and strategies. The portfolios utilize a mix of actively- and passively-managed mutual funds and/or exchange traded funds (ETFs).
THE ADVANTAGE
Research has shown that strategic asset allocation explains most of the variability in portfolio returns over time. The Total Return portfolios are thoughtfully constructed to provide consistency in allocations and risk profiles to help manage expectations of potential performance through different market environments. The portfolios are not driven by top-down tactical decisions from the Investment Committee; instead, we focus on adding value through rigorous bottom-up due diligence and selection of third-party investment managers, with tactical positioning delegated to those managers. This structure results in diversification of tactical management, less portfolio trading overall, and potentially greater tax efficiencies over time.