We believe that adding stops to a typical diversified dividend portfolio can maximize investor outcomes. The WBI BullBear Dividend Income strategy is intended for investors with a moderate appetite for risk, who want consistent return over their long-term investment.
Our Philosophy
We look to maximize up-market capture while at the same time minimizing down-market capture through WBI's time-tested Power Factor security selection and Dynamic Trailing Stop Process.
Einstein said that compounding is the most powerful financial force in the universe. WBI attempts to build enhanced compounding efficiency into our investment management approach for every strategy we design.
When market conditions are favorable, your portfolio needs to capture consistent return to grow capital and income to keep pace with inflation that can rob you of your purchasing power.
The Dividend Income strategy targets an equity-focused portfolio of global high-yield dividend stocks, for moderate investors who are seeking consistent return or supplemental income in retirement.
80% Stocks | 20% Bonds
Allocations are subject to change.
The Dividend Income strategy uses our Power Factor® security selection, bond model, and dynamic trailing stop process to manage capital. Stocks go through rigorous analysis to meet our high standards of quality and timeliness. A combination of “power factors” are applied to our daily screening for financial analysis of each stock to find the best opportunities to buy. Our dynamic trailing stop process raises cash as stock prices fall to help protect investor capital and harvest gains. The process is designed to keep us invested when market trends are deemed favorable or to build cash when conditions indicate a high degree of risk with a low probability of success.
An important potential benefit of active management is the risk protection for the investor, most critically during major market downturns. The worst bear markets of the past two decades have been devastating for investors who tried to buy and hold popular passive-index strategies but failed. A 40-50% decline like the S&P 500 realized during the Dot-Com Crash and Financial Crisis is catastrophic for many, especially those in or nearing retirement. We are committed to helping protect investors from these types of major losses.
Source: Morningstar, Net of Fee, 2020. Past performance is not indicative of future results. Indices are not managed and may not be invested in directly.
Past performance does not guarantee future results. This is not an offer to buy or sell any security. No security or strategy, including those referred to directly or indirectly, is suitable for all accounts or profitable all of the time and there is always the possibility of loss. You should not assume that any discussion or information provided here serves as a substitute for personalized investment advice from WBI or any other investment professional. If you have questions regarding the applicability of specific issues discussed to your individual situation, please consult with WBI or your chosen professional advisor. This information is compiled from sources believed to be reliable, but accuracy cannot be guaranteed. Additional information about WBI’s advisory operations, services, conflicts of interest and fees are in the Form ADV, which is available upon request or on the SEC’s website at www.adviserinfo.sec.gov.
Net of Fee Performance is net of the maximum WBI investment management fee and includes reinvestment of dividends and other earnings. WBI uses a model fee approach which consists of netting down 100 bps from gross returns on a monthly basis.
Benchmark performance does not include deductions of transaction and custodial charges or investment management fees, which would likely reduce performance results. Because the strategy involves active management of a potentially wide range of assets, no widely recognized benchmark is likely to represent performance of any managed account. WBI managed accounts may own assets and follow investment strategies which cause them to differ materially from the composition and performance of the benchmarks shown. Indices are unmanaged and may not be invested in directly.
S&P 500 TR Index: includes a representative sample of large-cap U.S. companies in leading industries where all payouts (dividend) are reinvested automatically. Russell 1000 Value TR Index: comprised of Russell 1000 companies with lower predicted and historical growth rates. Russell 2000 Value TR Index: comprised of Russell 2000 companies with lower predicted and historical growth rates. S&P 500 High Dividend TR Index: designed to measure the performance of 80 high yield companies within the S&P 500 and is equally weighted to best represent the performance of this group, regardless of constituent size.
Power Factors: proprietary factor-based security selection models that evaluate U.S. and international stocks for high-yield dividend, dividend growers, value, yield, and quality. P/E: indicates multiple an investor can expect to pay for a share of stocks to receive one dollar of that company’s earnings P/S: valuation ratio that compares a company’s stock price to its revenue per share P/FCF: valuation metric of securities used to compare a company’s per share market price to free cash flow per share ROA: Indicator of how profitable a company is related to its total assets FCF/Debt: ratio of a company’s cash flow from operations to its total debt CFYLD: evaluation ratio of a stock’s operating cash flow per share against its market price per share ROIC: performance measure indicating the percentage return that investors in a company earn on invested capital ROE: measures the ability of a firm to generate profits from its shareholders’ investments in the company RSI: momentum indicator comparing recent gains and losses in an attempt to determine overbought or oversold opportunity
The WBI Dynamic Trailing Stop (DTS) is not a stop loss order or stop limit order placed with a brokerage firm, but an internal process for monitoring price movements. While the DTS may be used to initiate WBI’s process for selling a security, it does not assure that a particular execution price will be received.
Other strategies may have different results.
You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format to any third party without the express written consent of WBI Investments, Inc.
PIMCO’s Alan Trice & Don Schreiber, Jr. of WBI: Tax-Efficient Income Investing
June 15, 11:00 AM ET
