Customer FAQ

iSectors Allocations are unique and offer multiple advantages to investors:

• iSectors^® Post-MPT Allocations maintain optimal portfolio allocations by rebalancing portfolios regularly as the investment environment changes. Post-MPT models are iSectors’ flagship series. These models offer an enhanced approach to traditional Modern Portfolio Theory (MPT) that catapults MPT to a new level of excellence. iSectors Post-MPT models’ impressive returns and low risks can be attributed to:
  • A more robust asset allocation algorithm that uses more than a dozen relevant economic variables to determine and regularly rebalance back to an optimal portfolio allocation. This process modifies allocations based on changing economic conditions and factors.
  • A superior approach to diversification using asset classes such as: US Treasury bonds, real estate, infrastructure, commodities and others. Note: Diversification does not necessarily ensure a profit nor protect against a loss in a declining market.
  • Our approach considers “negative returns” as the “risk” investors want to avoid, volatility (standard deviation) is a less appropriate measure of “risk.” Standard deviation, the historical traditional measurement of risk measures both upside AND downside volatility as risk. For example, a stock or investment that has large upside volatility (unexpected gains) is considered to have the same level of risk as an investment with large downside volatility (unexpected losses) when measuring risk by standard deviation. Our approach is more congruent with behavioral finance and “real world” investor views.
  • Low fees (when compared to actively managed mutual funds). In addition, all accounts are highly liquid and separately-managed accounts.
•  iSectors^® Endowment Allocation is an institutional quality asset allocation model that embraces the philosophy pursued by the managers of Endowment portfolios at institutions such as Yale University. These endowment funds, have been aggressively allocating to “Alternative Investments” like hedge funds, private equity and real assets, for decades. The strategy of over weighting alternatives has enabled them to out-perform their university endowment fund peer group; they have achieved this superior performance while reducing overall portfolio volatility (risk). While the iSectors Endowment allocation is not designed to mimic a university endowment fund to the fullest extent, it does contain a significant allocation to “alternative investments.” While iSectors does allocate to alternative investments we do not invest in private partnerships which are illiquid and only available to accredited investors (i.e. investors with a net worth exceeding one million dollars). All iSectors portfolios remain liquid and available to any institutional or individual investor they may be suitable for. These unique advantages are achieved by using alternative investments that are available either through an ETF, open and closed end Mutual Funds, exchange-listed Business Development Companies (BDCs), listed Master Limited Partnerships (MLPs), or SEC registered pfunds. While our investment strategy doesn’t specifically exclude exchange-traded notes (ETNs), these are not typically in our models.
• iSectors^® Tactical Series (Tactical Global Balanced, Tactical International) offer flexible strategies that remain invested when it appears opportunities may provide return potential and rotate to cash when it appears that trends have reversed and investors may be better suited to be in cash.
• iSectors^® Inflation Protection and Precious Metals Allocations have been designed to help investors protect their portfolios from the threats of inflation.
• iSectors allocations are available in separate or unified managed accounts. This means that your account is held in your name at an independent custodian; the securities held in your account belong to you. The investment platforms that we work with provide you with 24/7 access to information regarding your holdings, performance and tax reports. Therefore, you benefit from tax advantages, transparency, lower costs, liquidity and control not offered by mutual funds or other investments such as hedge funds.
• iSectors is committed to the best service and low expenses. We are able to provide clients cutting edge investment management services and a world class web-based reporting platform (updated daily).