Run with the Bull

WBI’s Power Factor strategies unleash the power of WBI’s security selection process by maintaining a fully invested approach to maximize return. These portfolios utilize WBI’s multi-factor security selection models designed over the last three decades to develop the most powerful factor combinations to find the strongest stocks to buy.

"Our mission is to help investors take less loss and less risk in bear market cycles so they can stay the course, and stay invested in their portfolio.”
Don Schreiber, Jr.
Founder & Co-CEO

Our Philosophy

Creating
Outcome-Oriented
Solutions

Reduce Loss of Capital

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 process with more advanced factor layering aimed to improve quality, timeliness, and return potential.

Generate Compounding from Dividends

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.

Consistent Return to Achieve Investor Goals

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.

Sophisticated Factor Models

WBI’s time-tested Power Factor security selection process includes advanced factor layering aimed to improve quality, timeliness, and return potential. Extensive backtesting and optimizations combined with millions of factor model simulations produce our optimal universe of dividend-paying stocks that fit a particular style and cap size.

In contrast to WBI’s conservative active risk-managed process, the Power Factor series does not raise cash as risk of capital loss increases. These strategies instead employ a smart beta-style1 approach to improve portfolio holdings and returns each quarter by rebalancing the portfolios with stocks exhibiting the highest Power Factor scores and performance potential based on a combination of the factors. The securities with the top Power Factor scores receive the highest portfolio weights, and securities that fail to make the grade are eliminated. Quarterly rebalancing after stocks have reported earnings allows the Power Factor process to favor those securities exhibiting the strongest fundamental performance trends. It also enforces a buy low-sell high discipline by trimming or eliminating stocks that show deteriorating fundamental trends or harvesting gains from stocks that have had outsized performance.

POWER FACTOR SECURITY SELECTION
ACTIVE QUARTERLY REBALANCING

IMPORTANT INFORMATION

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, accuracy cannot be guaranteed. Information contained in this Presentation may constitute “forward-looking statements,” identified by terminology such as “should,” “expect,” or “continue,” or the negatives thereof or other variations thereon. Due to various risks and uncertainties, actual events, results [or the actual performance of the Adviser’s investments] may differ materially from those reflected or contemplated in such forward-looking statements. WBI’s advisory operations, services, and fees are in the Form ADV, available upon request.

The process by which securities are selected and assets are allocated within WBI Power Factor SMA strategies, which are aggressive, will typically occur no more frequently than quarterly, which may cause accounts invested at different times during a quarter to reflect implementation of the strategies on a different basis than other accounts managed to the same or a similar strategy. The accounts may invest in and hold securities which are declining in value for an extended period of time, typically without taking a temporary defensive position, as part of the normal operation of the investment strategy.

POWER FACTORS
  • P/E – Price to Earnings Ratio: indicates multiple an investor can expect to pay for a share of stocks to receive one dollar of that company’s earnings.
  • P/S – Price to Sales: valuation ratio that compares a company’s stock price to its revenue per share.
  • ROIC – Return on Invested Capital: performance measure indicating the percentage return that investors in a company earn on invested capital.
  • ROA – Return on Assets: indicator of how profitable a company is related to its total assets.
  • P/FCF – Price to Free Cash Flow: valuation metric of securities used to compare a company’s per share market price to free cash flow per share.
  • ROE – Return on Equity: measures the ability of a firm to generate profits from its shareholders’ investments in the company.
  • FCF/Debt – Free Cash Flow to Debt: ratio of a company’s cash flow from operations to its total debt.
  • RSI – Relative Strength Index: momentum indicator comparing recent gains and losses in an attempt to determine overbought or oversold opportunity.
  • CFYLD – Cash Flow Yield: evaluation ratio of a stock’s operating cash flow per share against its market price per share.
1Smart Beta strategies attempt to deliver a better risk and return trade-off than conventional market cap weighted indices by using alternative weighting schemes based on measures such as volatility or dividends.

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.