Core Strategies

You never know in any given period which investment approach is going to pay off and deliver the best return. Whether it’s a passive approach, whether it’s an active approach, whether it’s something in between or a blend of a few of those approaches.

Through Valor, not only do you have diversification in the investment holdings, but you also have diversification across multiple different approaches. We’ve built the platform infrastructure for you to be able to deliver what you feel is in your clients’ best interests and able to meet their expectations all with the efficiency of a unified managed account using portfolio sleeves. This means one account to be opened, but the ability to blend multiple strategies or solutions together for customization and efficiency.

Active Investing

With an active portfolio, we’re giving the manager the dynamic ability to make adjustments to try to enhance the return above and beyond the market benchmark for the client. If they think inflation is going to creep up, they may make changes in the portfolio to address inflation. If they think technology is going to outperform, they have the ability to proactively make those changes.

An active investment approach can:

  • Work to deliver investment alpha
  • Offer targeted diversification exposure
  • Deliver specific tax savings

Together with BlackRock, the world’s largest asset manager, Valor has developed The Valor United Models, to deliver BlackRock’s investment team, research, data, and Aladdin Technology to pursue better investment returns.

Rebalancing and Trading Execution
The typical Valor Pre-Tax United Portfolio will trade between four to eight times a year to make moves to try to capitalize on market conditions. The Valor Tax-Managed United Portfolio lineup will reduce trading to improve tax efficiency in addition to excluding rebalancing that could cause short-term capital gains to your client. We’re going to strategically rebalance through a framework of rules, again to eliminate emotion, but it gives the portfolio manager the ability to target specific investments, sectors, or styles to seek outperformance. Active investing can also enhance overall tax management for your clients.

Evidence-Based Investing

With the advancements in technology, data analytics and the collection of historical information on stock prices spanning decades of diverse market conditions, evidence-based investing has emerged as a popular method for advisors to deliver outperformance without having to try to outguess the market. This investment strategy is designed to provide investors with low-cost approach to reap the benefits of both active and indexed strategies, while minimizing the respective inefficiencies. The investment approach is grounded in Nobel Prize winning economic theory and backed by decades of empirical research.

Powered by Dimensional Fund Advisors—operating for over 40 years with $647B in firmwide AUM & supported by 90+ research team members, 10+ PhDs, and some of the top academic minds in finance & economics, The Valor Dimensional Wealth Models brings your client’s a portfolio offering grounded in Nobel Prize winning economic theory and backed by decades of empirical research.

Rebalancing and Trading Execution
Our typical Valor Pre-Tax Dimensional Portfolios will deploy an annual rules-based rebalancing process so that when there is style drift in the portfolio, we are rebalancing back to target systematically. These portfolios will typically have a higher concentration of small cap and value stock compared to a market weight benchmark and may utilize mutual funds or ETFs to gain the targeted asset class exposure. The Valor Tax-Managed Dimensional Portfolio lineup will have more exposure to exchange traded funds (ETFs) to improve tax-efficiency in addition to excluding rebalancing that could cause short-term capital gains to your client.

Passive Market Capture

With the long-term objectives in mind, passive market capture strategies incorporate investments that can be relied upon for long-term growth. As a remarkably low-cost investment management solution, passive strategies do not profit from short-term price fluctuations or market timing, but rather by long-term growth tied to the performance of an indices, market sector, or collection of individual stocks and/or bonds.

  • Typically, the lowest cost investment option
  • Simple for clients to understand
  • Very tax-efficient

What’s going to help keep your passive investor as a client is your ability to measure the right amount of volatility they’re willing to accept, and then you match them up to the right portfolio to achieve their objectives, which is where our business development team is particularly valuable.

Together with Vanguard®, the world’s second largest asset manager, Valor offers The Valor Vanguard® Strategic ETF® Models, to leverage Vanguard’s 40+ years of experience in portfolio construction and indexing to deliver a remarkably low-cost broad-market equity and investment-grade fixed-income exposure portfolio, encompassing more than 25,000 global stocks and bonds.

Rebalancing and Trading Execution
There is a level of static asset allocation that can help drive the returns of the portfolio. Valor is executing trading and cash management to help enhance overall expectations of the portfolio, whether it’s dollar-cost averaging for accumulation or whether it’s systematic withdrawals for distribution needs.

We deploy a rules-based rebalancing process so that when there is style drift in the portfolio, we are rebalancing back to target systematically.  This will give your clients the peace of mind to know that when equity markets go down, we’re selling fixed income and buying more equities. When equity markets are high, we’re selling some equities and buying more fixed income. It’s the easiest way to make sure that the client is buying low and selling high and having a documented strategic rebalance process in place that’s rules-based instead of emotionally driven. The Valor Tax-Efficient Vanguard Portfolio lineup will have more exposure to tax-exempt fixed income to improve tax efficiency in addition to excluding rebalancing that could cause short-term capital gains to your client.