Wealth Management Philosophy

At Victory Fiduciary Consulting, we implement a disciplined, non-emotional, math-based investment selection process and performance monitoring. Our Tactical models are a modern day approach to investing. Many Advisory Firms use a system established in 1950’s and has not changed. Victory’s rules based portfolio management system has three main goals:

1. We want to outperform the S&P 500 index by at least 1% / year.
2. We want to reduce volatility
3. We aim to take advantage of market opportunities.

Through these three goals, we shape the steps of our investment methodology for our clients. Our Investment Committee meets with four other Investment Committees across the nation who utilizes this same math-based approach. There are over 40 years of combined investment management experience using this approach.

Step 1: Should We Invest or Stay in Cash?
The first step of the Victory Fiduciary Consulting investing process is to decide whether we should be invested at all. We track six indicators that help determine the overall strength of the stock and bond market. When a majority (four or more) are positive we remain in the market. If four or more go negative, it is a sign that there are significant technical and fundamental deficiencies.

Step 2: Should We Generally Be in Stocks or Bonds?
If our long-term indicators are strong from step 1, then Step 2 will help us decide how we will invest our money. One way is to observe the relative strength between stocks and bonds. We determine the relative strength by dividing the S&P 500 (a stock market index of 500 companies) by the Core U.S. Aggregate Bond Index (a bond market index).

Step 3: Where Should We Be Invested?
Once relative strength confirms to us whether we should be in stocks or bonds, we then must know in which asset classes we should invest. Dynamic Asset Level Investing, or D.A.L.I. for short, evaluates six broad asset classes using a relative strength matrix comprised of a diversified universe of all the asset classes. From these rankings, we can decide which investment styles and sectors we should be invested in. We seek to capture those asset classes and sectors that have strong performance momentum while avoiding those with declining momentum.

Step 4: What Funds or ETF’s Should We Choose?
Now that we have a general idea of which areas of the market are performing best, we conduct various investment screenings to identify the most appropriate line-up. The relative strength matrix helps us determine which funds/ETF’s are outperforming versus their peers. We also use a separate fiduciary scoring system covering 11 different criteria.

Conclusion
In today’s increasingly-volatile investment landscape, we provide investors with real-world strategies. Thanks to our systematic, math-based process of market analysis, investing is just that simple. The old investing mantra of “buy and hold” no longer applies, as we enter a new era of financial technology and instant information. Instead, we use a modern approach through the use of technology to attempt to stack the odds in favor of our investors.

The opinions voiced on this website are for general information only and are not intended to provide specific advice or recommendations for any individual. All indices are unmanaged and not be invested into directly. The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The Bloomberg Barclays U.S. Aggregate Bond Index is an index of the U.S. investment-grade fixed-rate bond market, including both government and corporate bonds.

The Information on this website, including statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.

This website was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational website.

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