Back to the future with Personalized Direct Investing

Let’s take a brief journey in the Wayback Machine to roughly 30 years ago. It’s a simpler time. Jurassic Park is breaking box office records. Michael Jordan leads the Chicago Bulls to their third straight NBA championship (then promptly retires to play baseball). The investment solutions available to clients are mainly stocks, bonds, and sleepy mutual funds.

 

Suddenly, Profs. Eugene Fama and Kenneth French publish a paper in which they examine the body of evidence from decades of academic research looking at where returns for investments come from… they identify causes or “factors” that help to explain the returns from markets, things like valuation (or “value”) and capitalization (or “size”). It is ground-breaking and kicks off an explosion in new types of investment vehicles and risk exposures (ex: the Morningstar 9-style box).

 

As we return back to the future, we see that, over time, other factors, such as momentum, volatility, quality, liquidity, and yield, have been examined empirically and successfully used by investors. 

We also see that the ongoing advances from then to now have culminated in an exciting evolution in cutting-edge platforms that allow investors to implement highly personalized investment solutions that address their unique preferences, values, and tax considerations that:

  • Improve outcomes in helping minimize taxes
  • Offer an enhanced ability to express their personal preferences or values, such as adopting ESG strategies
  • Provide investors a sophisticated way to pursue specific investment opportunities (like Factor tilts) while holding a tailored portfolio of individual stocks

We have looked at all the available evidence and best practices--and sifted out the noise and clutter--to develop a sound, Evidence-based approach to making the latest innovation available to investors.

The Symmetry Axiom Platform offers a sophisticated, process-driven combination of technology and investment expertise designed to provide a “1-stop” personalized investing experience for Financial Advisors.

The platform is investment agnostic—the focus is on what combination of investments will best address an investor’s unique situation and needs, including Separately Managed Account offerings, standard and custom indices, and in some cases, mutual funds and ETFs. All are backed by Symmetry’s research and the some of the best thinking on Factor Investing.

 

It also includes various overlay services, including tax management and specific security exclusions and inclusions to provide further personalization.

 

Visit www.symmetryaxiom.com to learn more.

 

 

Symmetry Partners, LLC is an investment advisory firm registered with the Securities and Exchange Commission (SEC). The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. A copy of Symmetry's current written disclosure brochure filed with the SEC which discusses among other things, Symmetry’s business practices, services and fees, is available through the SEC's website at: www.adviserinfo.sec.gov.

Symmetry Partners, LLC, provides this communication on this site as a matter of general information. Information contained herein, including data or statistics quoted, are from sources believed to be reliable but cannot be guaranteed or warranted. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. All content on this site is for educational purposes and should not be considered investment advice, recommendation or offer of any security for sale.

Investing involves risk, including the loss of some or all of your principal. Diversification seeks to reduce volatility by spreading your investment dollars into various asset classes to add balance to your portfolio. Using this methodology, however, does not guarantee a profit or protection from loss in a declining market.

 

Back to Blog

Related Articles

Holiday Heartburn

Since roughly Thanksgiving, markets have been on a bumpy ride, prompting elevated levels of holiday...

The “What, Why & How” of Direct Indexing - Part I

Part I: What is Direct Indexing

The “What, Why & How” of Direct Indexing - Part III

Part III: Values Investing & Taxes