Evidence-Driven Investment Management

WELLth’s investment philosophy seeks to combine the most cutting-edge academic research on investing and markets with our own proprietary and award-winning methodologies.  Our approach is empirically driven, with investment decisions based on statistics and data, and never on “gut feel” or emotions.

The four pillars of our investment process are as follows:

A diagram explaining the four facets of WELLth Financial Planning's investment process

Forward-Looking Returns

Should I invest in stocks, bonds, commodities?  Many will answer that question by simply looking at what has performed well previously.  The present is not a carbon copy of the past, and our view is supported by academic research.  We create our own return forecasts for each asset class using metrics such as valuations, loan default trends, cash flow, and economic growth rates.

"Efficient," Optimized Portfolios

Diversification, in our opinion is the only free lunch out there when it comes to investing.  Through a mathematical process called “optimization,” we can create a portfolio that aims to maximize the risk-reducing benefits of diversification.  The theory behind this process is rooted in Nobel Prize winning research and is the basis for what we know today as “Modern Portfolio Theory.” 

Factor-Driven Stock Selection

“Factor investing” is is a heavily researched and academically-validated method of picking stocks which either enhance portfolio return or reduce portfolio risk.  This “big data” driven method of selecting stocks filters through the noise of product, competitor, and management analysis and hones in on specific metrics which have historically and reliably led to robust performance.

Factor investing is also called “enhanced indexing” due to its objective framework and minimal expenses versus its actively managed counterparts.  Some examples of a few of the most researched factors used by investment managers are included in the following diagram:

Description of various factors and theories as to why they work.
As always, past performance is not a guarantee of future results.

Award-Winning Risk Management

Before WELLth was founded, we created unique, quantitative strategies for institutional investors.  Many of our algorithms were designed to identify and take advantage of temporary market dislocations and inefficiencies.  Our work was widely respected and, in fact, won the internationally recognized Charles H. Dow Award in 2019 for our new and novel research.  We are proud to integrate our previous work into client portfolios in order to reduce risk and enhance return, all while maintaining our long-term investing focus.

Flat Fee Pricing of $900 Per Account, Per Year

Our pricing is simple. We charge a flat $900 per year per account directly managed.  Financial planning clients also enjoy fee waivers for workplace retirement accounts, 529 college savings plans, and any managed account under $50,000.

Over time, flat fees can save you significant amounts of money which leaves you with more dollars to grow for your own benefit.  See below for a hypothetical example of how a $500,000 account grows over time with a typical 1.00% annual fee versus our flat $900 annual fee.

Graph showing the impact of a $900 flat fee versus 1.25% on a hypothetical portfolio returning 8% per year.

Ready to take your investing to the next level? Click here to schedule a complimentary call with our Chief Investment Officer to learn more about our cutting-edge investment process and how it can help you achieve your financial goals