Applications of Enhanced Dynamic® with Domestic Equity Investment Vehicles
The Enhanced Dynamic® methodology generates investment direction and weighting recommendations for the domestic equity styles (growth and value) and for the equity market capitalizations (large, mid, and small) of an institutional equity portfolio.
As the many different independent evaluations, analysis, empirical studies and audits have demonstrated, the Enhanced Dynamic® methodology delivers important risk adjusted return improvements to many style and cap size adherent investment strategies. These results have been successfully displayed with many different style adherent investment vehicles and investment products, such as actively managed domestic equity portfolios, index funds, exchange traded funds, some “smart beta” strategies and mutual funds.
As fee based investment strategists, we are indifferent to the investment managers or investment vehicles or products selected by our clients and their investment advisors, provided there is a clear, consistent differentiation and adherence to the above 4-6 equity classifications, at a reasonable cost.
Clients of Enhanced Investment Partners do not necessarily need to change the existing style and cap size adherent active investment managers, investment vehicles, ETFs or investment fund lineup to benefit from the Enhanced Dynamic® services. At the request of our client, we will provide input and recommendations to the current investment lineup, and suggested changes, based upon our Proprietary Enhanced Dynamic® manager evaluations.
Utilizing any or all of the above style adherent investment vehicles, we expect to deliver a prudent, dynamically balanced, domestic equity portfolio which is expected to achieve higher (above benchmark) risk adjusted portfolio returns, over a full market cycle.
Factors for consideration:
- Style and cap size discipline and adherence to declared investment strategy and style are very important. Deviation from the manager’s stated investment approach could subject the portfolio to considerablere turn variation, and unexpectedly increase or decrease both returns and volatility.
- We will evaluate all existing investment vehicles and report any concerns or weakness we would anticipate. We will provide our proprietary analysis and insight as to suitable candidates if it becomes necessary to replace any current investment option in the portfolio.
- As stated previously,the existing investment line-up does not need to change to benefit from the Enhanced Dynamic®
- We do not and will not receive any additional compensation of any kind, other than that agreed upon within the investment management contract.
- We will not receive any directed commission compensation or fees of any kind from any client portfolio. All recommendations will be based upon the client goals and objectives.
- Equity portfolios are expected to be fully invested at all times. Enhanced Dynamic® is not a tactical or market timing strategy.
- We will recommend the investment management services of those investments which we feel are the best fit for the client and our methodology.
- We serve as fiduciaries within the agreed upon, and documented, scope of duties and responsibilities for each client relationship.
- We are accountable to our clients. Our success depends upon the long-term success of the client portfolio.
- If we do not generate satisfactory investment results, adjusted for risks over a full market cycle, then we should be removed.