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Wallickinvestments Danwallick Danwallick







WI Low Volatility

WI Lower Volatility, Quality Distribution portfolio is a “stormy weather” holding consisting of less-correlated securities of high quality companies with lower stock price volatility. These companies reliably pay a distribution yield well above the general equity market while maintaining long-term total return potential.

WI Low Vol’s goal is to outperform common equity indexes while taking a minimum of 20% less risk. Its custom benchmark is comprised of 80% PowerShares S&P Low Volatility ETF and 20% of the Credit Suisse Liquid Alternative Beta Index, a representative proxy for the risk profile offered by Managed Futures products which we often employ to mute equity risk and/or achieve “cash-plus” returns in volatile markets. WI Low Vol should outperform general equity markets and more aggressive total return strategies in all but the most speculative markets. More importantly, this portfolio is expected to significantly outperform in difficult, high volatility environments.

The WI Low Vol portfolio will have low annualized turnover. Using more concentrated positions and a distinct, opportunistic tactical ability, WI Low Vol will have lower market correlation. These factors make this portfolio particularly effective for taxable accounts seeking superior total return with muted equity risk. WI Low Vol will continue to use the core WI analytical factors/rankings, including growth, profitability, financial health, earnings momentum, moral/ethical, among others.

The WI Low Vol overall style is best defined as a Multi-Cap, multi-asset defensive equity strategy, with moderate risk.Securities in the portfolio will represent all sectors. Individual weightings will be between 2-5% with no position over 8% of the portfolio and no non-equity class or sector exceeding 25% of the portfolio. Capitalization sizes will include small to mega-cap securities. The final portfolio may include 25-35% in U.S. dollar denominated global securities (ADRs), with the emphasis generally on U.S. Market names. The WI Low Vol portfolio average beta is targeted to be between .70 -.85 and annual turnover will likely be less than 40% over 2-3 year rolling periods.