Our Investment Process

Powerful, Disciplined, Responsive

Providing successful investment outcomes and experiences with peace of mind knowing that a transparent approach backed by decades of research is powering every decision.

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Foundation

Risk based allocations
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AlphaTiltTM

Flagship portfolio series
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Specialty

Purposefully built satellite portfolios
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Foundation Strategies

Asset allocation aligned to your Risk Number

The goal of allocating investments is to minimize risk while meeting the level of return you expect. Centric’s Foundation series, which consists of Voyager and Titan, are well built, dynamic portfolios that match your unique risk number. Foundations seek total return while diversifying risk exposures of various asset classes over the long-term.

Voyager Series

Strategic allocations across equities and fixed income using quality, cost-efficient securities. Employing both passive and actively managed ETFs, these portfolios are strategically rebalanced throughout the market cycles.

Titan Series

Same strategic philosophy as Voyager but more tax aware by utilizing tax advantaged securities and lower turnover.

Voyager 25

Voyager 25
Equity 15%
Fixed Income 85%

Potential Annual Return1

4.20%

95% Probability Range (6 Months)2

Voyager 35

Voyager 35
Equity 33%
Fixed Income 67%

Potential Annual Return1

5.77%

95% Probability Range (6 Months)2

Voyager 45

Voyager 45
Equity 50%
Fixed Income 50%

Potential Annual Return1

6.84%

95% Probability Range (6 Months)2

Voyager 55

Voyager 55
Equity 65%
Fixed Income 35%

Potential Annual Return1

7.72%

95% Probability Range (6 Months)2

Voyager 65

Voyager 65
Equity 80%
Fixed Income 20%

Potential Annual Return1

8.35%

95% Probability Range (6 Months)2

Voyager 75

Voyager 75
Equity 90%
Fixed Income 10%

Potential Annual Return1

8.93%

95% Probability Range (6 Months)2

Voyager 85

Voyager 85
Equity 100%
Fixed Income 0%

Potential Annual Return1

8.92%

95% Probability Range (6 Months)2

For asset mix, due to rounding methodology, totals may not add up to 100%. Asset class holdings as of 04/01/2021.

Titan 25

Titan 25
Equity 15%
Fixed Income 85%

Potential Annual Return1

3.82%

95% Probability Range (6 Months)2

Titan 35

Titan 35
Equity 33%
Fixed Income 67%

Potential Annual Return1

5.54%

95% Probability Range (6 Months)2

Titan 45

Titan 45
Equity 45%
Fixed Income 55%

Potential Annual Return1

6.50%

95% Probability Range (6 Months)2

Titan 55

Titan 55
Equity 65%
Fixed Income 35%

Potential Annual Return1

7.70%

95% Probability Range (6 Months)2

Titan 65

Titan 65
Equity 80%
Fixed Income 20%

Potential Annual Return1

8.35%

95% Probability Range (6 Months)2

Titan 75

Titan 75
Equity 90%
Fixed Income 10%

Potential Annual Return1

8.98%

95% Probability Range (6 Months)2

Titan 85

Titan 85
Equity 100%
Fixed Income 0%

Potential Annual Return1

9.07%

95% Probability Range (6 Months)2

For asset mix, due to rounding methodology, totals may not add up to 100%. Asset class holdings as of 04/01/2021.

AlphaTiltTM Strategies

A proprietary portfolio series based on scientifically tested fundamental factors. Focused on long-term fundamentals and proper diversification, AlphaTilt™ employs tactical tilting to correspond to the prevailing business cycle and enhance risk-adjusted returns. AlphaTilt™ offers the potential benefits of both traditional active and passive investment management.

Active & Passive
Strategic & Tactical
Factors Based
Scientifically Researched
Fundamentally Based

Active

Outperformance Potential, Higher Cost, Black Box, Subjective (Human Emotion), Capacity Constrained

Passive

Market Performance, Lower Cost, Transparent, Objective (Indexing, No Rebalancing

Strategic

Based on the investors return objectives and risk constraints.

Strategic

Asset Allocation is shifted.

Tactical

Based on fundamentals; business cycle, corporate profits, etc.

Tactical

Asset Allocation is maintained; individual securities are shifted.

Value

Companies discounted relative to their fundamentals

Momentum

Companies with upward price trends

Low Volatility

Stable, lower risk companies

Size

Smaller, high growth companies

Dividend

Companies with above average dividend yields

Quality

Financially healthy companies

Other

Other

Harry Markowitz, 1990

Portfolio Selection: Efficient Diversification of Investments

William Sharpe, 1990

Sharpe-Lintner CAPM

Robert Merton, 1997

Intertemporal CAPM

Eugene Fama, 2013

Risk, Return, and Equilibrium: Emperical Tests, The Cross-Section of Expected Stock Returns, Profitability, Investment, and Average Returns, and Dissecting Anomalies

Robert Shiller, 2013

Stock Prices, Earnings and Expected Dividends

Lars Peter Hansen, 2013

Large Sample Properties of Generalized Methods of Moments Esimators

Economic Rationale

Based on strong economic intuition and academic evidence

Diversification

Low correlation with other factors

Value Creation

Emperical evidence of positive returns

Efficient Implementation

Able to be implemented in transparent, repeatable manner

AlphaTiltTM Portfolios

Strategy/Objective:100% Equity

Designed to reduce overall portfolio volatility and provide limited downside protection during market corrections through tactical tilting with select factor ETFs.

Potential Annual Return1

6.90%

Style Factors

Risk 55
Target Risk Score Range3
Risk 65
Strategy/Objective:100% Equity

Designed to enhance risk-adjusted returns over the long-term by making modest tilts while maintaining consistent broad exposure to factor ETFs.

Potential Annual Return1

8.90%

Style Factors

Risk 65
Target Risk Score Range3
Risk 75
Strategy/Objective:100% Equity

Designed to opportunistically enhance risk-adjusted returns over the long-term through tactical tilting with targeted factor ETFs.

Potential Annual Return1

9.40%

Style Factors

Risk 75
Target Risk Score Range3
Risk 85
Strategy/Objective:100% Equity

Designed to deliver enhanced, yet sustainable income from diversified equity portfolio. Target yield of 4-6% by utilizing specific factor ETFs.

Potential Annual Return1

6.80%

Style Factors

Risk 60
Target Risk Score Range3
Risk 80
Strategy/Objective:100% Equity

Designed to provide enhanced risk-adjusted equity returns of international markets, both developed and emerging markets.

Potential Annual Return1

7.12%

Style Factors

Risk 70
Target Risk Score Range3
Risk 85
Strategy/Objective:100% Fixed Inc.

Designed to provide less volatile fixed-income returns of the bond markets. Properly diversified across issue types and maturities.

Potential Annual Return1

4.20%

Style Factors

Risk 20
Target Risk Score Range3
Risk 35

Specialty Strategies

Give satellite a new meaning 

We’ve built purposeful, effective, and unique satellite portfolio strategies to complement Centric’s core portfolio strategies.

Disruptive

Target long-term trends that could disrupt and transform the way we live and work. Disruptive themes range from robotics to block-chain to space and have the potential to significantly alter our future.

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Alternatives

With low correlation to traditional asset classes, alternatives can be a beneficial way to diversify your portfolio. From hedged indexes to merger arbitrage, alternatives tend to behave differently than typical stock and bond investments.

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CENTRIC’S PHILOSOPHY

Core & Satellite

Time-tested investment portfolio design consisting of AlphaTilt™ portfolios as the core investment and specialty portfolios, that may have a more focused theme to complement the core, known as satellites. Used by Centric to enhance returns while increasing diversification, Core & Satellite is simple yet effective.

Important Disclosures

Centric’s Market Assumption Disclosures: This information is not intended as a recommendation to invest in any particular asset class or strategy or product or as a promise of future performance. Note that asset class assumptions are passive, and do not consider the impact of active management. All estimates on this webpage are in US dollar terms unless noted otherwise. Given the complex risk-reward trade-offs involved, we advise clients to rely on their own judgment as well as quantitative optimization approaches in setting strategic allocations to any asset classes and strategies. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Assumptions, opinions and estimates are provided for illustrative purposes only. They should not be relied upon as recommendations to buy or sell securities. Forecasts of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. If the reader chooses to rely on the information, it is at its own risk. This material has been prepared for information purposes only and is not intended to provide, and should not be relied on for, accounting, legal, or tax advice. The outputs of the assumptions are provided for illustration purposes only and are subject to significant limitations. “Expected” return estimates are subject to uncertainty and error. Expected returns for each strategy can be conditional on economic scenarios; in the event a particular scenario comes to pass, actual returns could be significantly higher or lower than forecasted. Because of the inherent limitations of all models/strategies, potential investors should not rely exclusively on the model/strategy when making an investment decision. The model cannot account for the impact that economic, market, and other factors may have on the implementation and ongoing management of an actual investment portfolio. Unlike actual portfolio outcomes, the model/strategy outcomes do not reflect actual trading, liquidity constraints, fees, expenses, taxes and other factors that could impact future returns. Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss.

General Disclosure: This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Any graphics used are for illustrative purposes only. No graphics displayed are intended to be comprehensive, all inclusive, nor 100% accurate. At anytime and at its sole discretion, Centric may add, alter, or remove any graphics displayed on this webpage. Reliance upon information on this webpage is at the sole discretion of the reader. Investing involves risks.

1: Potential Annual Return (PAR) is not the likely return over the next 1 year, but a potential average annual return over a full market cycle. PAR is taken directly from Riskalyze and takes into account return and volatility metrics, dividend payouts, and internal expenses charged by mutual funds and ETFs. PAR assumes that the risk profile of the portfolio will not change throughout market cycles in future years. AlphaTilt portfolio’s PARs are ESTIMATES taken from Riskalyze for the portfolio at the mid point of the risk range.

2: 6 Month 95% Probability Range is calculated from the standard deviation of the portfolio, and represents a hypothetical statistical probability, but there is no guarantee any investments would perform in this range. There is a 5% probability of greater loss.

PAR, 6 Month 95% Probability Range, and Risk Numbers are current as of April 14, 2021. Returns, numbers, and ranges have been rounded for visual display purposes.

3: Riskalyze Disclosure: The Risk Number® is a proprietary scaled index developed by Riskalyze to reflect risk for both advisors and their clients. The Risk Number is at the heart of a sophisticated set of tools to precisely measure the appetite and capacity for risk that each client has, and demonstrate their alignment with the portfolios built for them.

Shaped like a speed limit sign, the Risk Number gives advisors and investors a common language to use when setting expectations, recognizing risk and making portfolio selections. Just like driving faster increases hazards, a higher Risk Number equates with higher levels of risk. Risk Numbers for a given portfolio/model/strategy can change at any time, without notice. An important driver of the Risk Number is the measurement of downside risk: either the downside risk in the investor’s comfort zone (the range of risk to reward that they approve via the Risk Questionnaire or Risk Target), or the downside risk in a portfolio as measured by the 6 Month 95% Probability Range. Centric typically considers Risk Numbers to be in alignment when they are within 5-10 points of each other. For example, a portfolio with a Risk Number of 45 is often used for clients ranging from 40-50.