MODEL DELIVERY:
Portfolio management, powered by QuantStreet.
QuantStreet offers tactical and strategic model portfolios at a range of risk levels. Our model portfolios help you implement an ETF-based asset allocation strategy that’s based on a proprietary machine learning algorithm designed by our CIO.
Have you considered outsourcing your firm’s CIO function but ultimately decided to keep the investing decisions in-house? Do you have multiple advisers who invest similarly-situated clients inconsistently? Would a rigorous investment strategy help?
QuantStreet’s model portfolios may be your solution. Each month, you’ll receive our latest model portfolios at a range of risk levels, from conservative to aggressive. Once you identify each client’s risk level, you will have a suitable model portfolio that can be customized by your team fit the client’s specific needs.
QuantStreet’s model portfolios can be used for the asset allocation component of your strategy, or they can serve as a full OCIO-style solution
Benefits of Model Portfolios
1. More time for client relationship building, business development, and work-life balance.
2. Peace of mind knowing that your clients are invested based on an academically rigorous and disciplined approach.
3. Multiple risk levels to meet individualized client needs.
4. Access to two sets of portfolios – Strategic and Tactical – allowing you to customize portfolio turnover to client needs.
5. Regular market analysis and commentary that empower you to explain the investing strategies to your clients.
6. More robust and sophisticated investing solutions than advisers can offer on their own.
7. Training for your wealth advisers on how to best use QuantStreet’s model portfolios to address clients needs.
8. Direct access to QuantStreet’s CIO for in-depth economic and market analysis.
Technology and data are changing everything. How about your investments?
To help you manage your own clients’ portfolios in a rigorous and analytically consistent manner, QuantStreet offers a model portfolio subscription service. Our models are implemented using highly liquid, low-cost exchange traded funds (ETFs). On a monthly basis, subscribers receive two sets of ETF-based model portfolios:
Strategic portfolios reflect long-term risk-return tradeoffs in the market. These portfolio change slowly over time.
Tactical portfolios are designed using QuantStreet’s proprietary machine learning forecasting model. These react dynamically to changing market conditions and have monthly turnover between 5-15%.
Both sets of portfolios reflect concentration and other position limits (e.g., the investment grade allocation can’t be higher than 50% of the U.S. Treasury allocation) which are customizable to user requirements. We can work with subscribers to customize the model portfolios to their specific use cases.
Passive allocation is a good starting point, but it fails to recognize that some assets are more or less attractive at different points in the economic cycle. We solve this problem through an active portfolio construction approach. First, we use a machine learning algorithm to forecast asset class returns. Then, we construct portfolios based on those forecasts to match client risk preferences. Our models are adaptive and change over time as economic and market conditions evolve
Service Options
Options
Base portfolios
Tactical portfolios
Written explanation of investing rationale
Market and economic analysis
Quarterly call with CIO
Custom portfolios for specific client needs
Basic
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Standard
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Advanced
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*QuantStreet offers pricing on a sliding scale depending on end-user AUM.
Fees
Basic
Inquire about pricing*
Base portfolios
Tactical portfolios
Written analysis of investing rationale
Standard
Inquire about pricing*
Base portfolios
Tactical portfolios
Written analysis of investing rationale
Quarterly call with CIO
Advanced
Inquire about pricing*
Base portfolios
Tactical portfolios
Written analysis of investing rationale
Quarterly call with CIO
Custom portfolio analysis for specific client needs
Pricing for each service depends on clients’ assets under management.
Our Investing Process
Algorithmically generated using economic and market data
Qualitative analysis
Portfolio Implementation
We invest primarily using ETFs (exchange traded funds). ETFs have a number of key benefits:
ETFs are low cost and highly diversified. Purchasing a single ETF can be like buying hundreds or thousands of individual stocks and bonds.
Our ETF providers are leading global asset managers (Vanguard, BlackRock, State Street, etc.).
Our asset classes include US stocks, international and emerging market stocks, US government and corporate bonds, and real estate investment trusts.
We also invest in value and momentum ETFs.
- Value is a strategy that involves buying stocks with relatively attractive valuations.
- Momentum involves buying past winning stocks, and avoiding past losing stocks.
ETFs are highly liquid. They allow us to dynamically reposition the portfolio in response to changing market conditions and opportunities, at low cost to our clients.
We do not use leverage or short-selling in our investments.
Sample Portfolio
In this sample portfolio, the assets offering the most attractive reward/risk tradeoffs are S&P 500 stocks, value stocks, high-yield bonds, and an ETF tracking real estate investment trusts.
The portfolio can also maintain some amount of cash, in this case 2.5% of portfolio value.
The portfolio is highly diversified and owns thousands of individual securities via the ETFs.
We rebalance your investment portfolio regularly.
Portfolio weights change over time to reflect changing opportunities and risks.
Assets with zero current allocation may have allocations in the future.
For technical details of our strategy, which are most relevant to professional investors, please visit our strategy in-depth page.