Our Strategic Market Strategy is classic Modern Portfolio Theory (MPT), designed to replicate market performance over the long term. The Strategic Market Strategy will appeal to advisors and clients who are willing to absorb market volatility in an effort to achieve mean historical market returns and who are uncomfortable with manager or strategy risk.
Like other strategic portfolios that follow the principles of Modern Portfolio Theory, Strategic Market owns a diversified portfolio of 20 assets classes that are periodically rebalanced based on tolerance bands for each asset class. Moreover, the portfolios are designed to be low cost. We use select ETFs with low internal expense ratios and ETFs with no transaction fees, whenever possible.
What sets the Congress program apart, however, is that it enables advisors to add additional value to an often commoditized investment solution. For example, (a) Congress manages accounts at the household level which further reduces transaction costs for clients with multiple accounts; (b) Congress employs enhanced tax strategies like asset location and tax loss-harvesting so advisors can meaningfully improve after-tax returns on a client by client basis; and (c) Congress can accommodate additional client customizations associated with legacy securities, billing, cash management and others.