Portfolios

Steven Van Metre Financial offers a wide range of managed asset allocated portfolios. The portfolios are managed with an emphasis on high returns and low risk through a strategic asset allocation model with a tactical focus.

What portfolios are available?

There are five portfolios in each class, based on risk. The higher risk portfolios have a higher allocation to equities, while the lower risk portfolios have a  higher allocation to bonds.

High Risk (99% equities, 1% cash)

Moderate-to-High Risk (80% equities, 19% bonds, 1% cash)

Moderate Risk (60% equities, 39% bonds, 1% cash)

Moderate-to-Low Risk (40% equities, 59% bonds, 1% cash)

Low Risk (20% equities, 79% bonds, 1% cash)

Cash positions can be customized based on the needs and desire of each client.

Is the cash position FDIC insured?

Yes! Of the many cash options available, TD Ameritrade offers a FDIC Insured Deposit Account that can be used as part of the models. FDIC insurance is subject to the rules and limitations as provided by the FDIC.

Are the portfolios diversified?

Yes, each portfolio is diversified based on strategic asset allocation models.

What types of investments do you use?

The portfolios invest in widely traded, low fee Exchange Traded Funds (ETFs). The portfolios may invest in stocks, bonds and mutual funds at the discretion of the portfolio manager.

What is Strategic and Tactical asset allocation?

Strategic asset allocation is setting target allocations based on Modern Portfolio Theory and then periodically rebalancing the portfolio back to those targets as investment returns skew the original asset allocation percentages. This concept is aligned with a “buy and hold” strategy.

Modern portfolio theory is a theory of finance that attempts to maximize expected portfolio returns for a given amount of risk by carefully choosing the proportions of various assets. It is a formula that allocates a specific percentage to target asset classes to lower the overall risk of portfolio for the expected risk tolerance.

Tactical asset allocation is a dynamic investment strategy that actively adjusts a portfolio’s sector focus. The goal of a this strategy is to improve the risk-adjusted returns of passive management investing.

How are the portfolios managed?

Research is done based on the economic cycles to determine which sectors of the economy are historically expected to outperform under current economic conditions. The various asset classes of the portfolio are then tactically invested in the sectors of the economy that are expected to offer the greatest growth potential.

Once a year all portfolios are rebalanced by December 31st, although may be rebalanced more often if needed. The annual rebalancing may be postponed at the discretion of the portfolio manager.

What about past performance?

In addition to actual return information, a Riskalyze® report is available on each of the portfolios, which shows how the portfolio has performed during various market conditions.

Are there any additional fees?

Yes, there is a 0.25% annual Asset-Based Fee Program through TD Ameritrade Institutional that charges a periodic fixed fee based on the percentage of the Account’s value rather than transaction-based commissions.

Other firms charge additional 3rd party fees for portfolio management, why do they do that?

Other firms do not have the capability, technology or knowledge on how to manage portfolios on a large scale. The additional “3rd party” fee charged by other firms is the fee for outsourcing the management of a portfolio to a 3rd party firm.

What about transaction fees and loads?

Transaction fees are covered under the Asset-Based Fee Program. There are no front-end or back-end loads.

What about liquidity?

All of the positions in the portfolios can be sold at any time and are available for withdrawal after the trade(s) has cleared.

What is the minimum investment?

None.

So how can you do this?

TD Ameritrade, Inc. has a sophisticated online trading platform that allows advisors to manage portfolios with a few clicks of the mouse.

Depending on which portfolio they select, a new investor is added to that corresponding portfolio model group. Once added, that investor gets traded into the model.

If a fund needs to be replaced from that portfolio or the portfolio needs to be rebalanced, all the members in the portfolio group are affected simultaneously. This alleviates the need to change each individual account one at a time.

This technology allows for a large group of people to be managed simultaneously without any additional staffing or expenses.

Wait, TD Ameritrade, Inc.? I thought you were with Atlas Financial Advisors, Inc.?

Atlas Financial Advisors, Inc. is a Registered Investment Advisory firm who uses TD Ameritrade, Inc. as one of their custodians.

So my account will be held at TD Ameritrade, Inc.?

Yes. In accordance with Atlas Financial Advisors, Inc.’s “Investment Advisory Agreement,” accounts will be opened with TD Ameritrade, Inc. for the execution of securities transactions and custodial services.

What qualifications do you have to select funds and manage portfolios?

The CERTIFIED FINANCIAL PLANNER® Professional designation shows expertise in how to create and manage risk-based asset allocation portfolios.

How do I get a copy of the Riskalyze® reports for the portfolio I’m interested in?

In order to get a copy of the Riskalyze® report for a particular portfolio, each potential investor must first receive a copy of Atlas Financial Advisors, Inc.’s ADV Form 2A and 2B, in addition to the firms Privacy Policy statement.

Please contact our office to request a copy of Atlas Financial Advisors, Inc.’s disclosures and privacy policy statement, in addition to the Riskalyze® report for each of the portfolios you are interested in.

Can you run a Riskalyze® report on my existing portfolio to see how it compares?

Yes. A copy of your most recent statement or a complete listing of your holdings, including dollar amounts or percentages, is needed.