The goal of the Flat Fee Portfolios Active Strategy is to identify and invest with managers that can add value over a full market cycle.
The process begins by sorting and screening the entire mutual fund universe of over 20,000 mutual funds. This allows us to broadly categorize the hundreds of fund families and their managers available to our portfolios. Next we build a scorecard to identity top managers based on risk, historical returns, manager tenure, and fund expenses (including expense ratios, 12(b)-1 fees, and trading costs). To narrow down the list further, our team takes a deeper qualitative look at the top funds and finds the managers in each asset class and investment style that have historically added value and outperformed their peers. Once our proprietary process identifies high-quality asset managers, our due diligence process determines which management styles complement each other.
Portfolios are constructed to achieve an optimal risk/reward profile by combining the managers and asset classes. We work with you to select an allocation that best tracks your long term goals and objectives. Our team works to ensure that the portfolios are rebalanced periodically and managers are monitored for style consistency, performance issues, and important personnel changes.