SOLUTIONS PLATFORM OVERVIEW

At SMS, we view investing strategies as tools used to build customized portfolio solutions for clients. We offer a robust platform of investment strategy offerings including passive, strategic, tactical, equity selection, liquid alts, and blended programs.

The Sowell Solutions Platform categorizes our investment strategy offerings first by investing methodology sleeve, then by portfolio type. Below is a table illustrating the portfolio solutions offered by Sowell Management Services.

To download a PDF of the Sowell Solutions Platform, click here. To download a PDF of the SMS Program Offerings Summary, click here.

Below are descriptions of our programs by investment style. Click any of the style boxes to expand the selection and view our strategies.

Classic Series | $25,000 Minimum


The passive approach to portfolio management utilizes pre-determined allocations to asset classes, index-based funds and/or ETFs, little-to no management input/risk, and periodic, pre-determined portfolio rebalancing. Typically, a passive approach is based on the efficient market hypothesis, which states that markets incorporate and reflect all available information, rendering active management to be of little value.

The Classic Series are portfolio strategies utilizing traditional asset allocation methodology targeting varying levels of risk. The portfolios employ index ETFs and rebalance on a calendar basis.


CLASSIC BOND (0/100)

A passive asset allocation strategy designed to produce current income. The management team will seek fixed income ETFs and/or open ended mutual funds appropriate for an asset allocation strategy targeting a 0% equity/100% bond market allocation. This portfolio is appropriate for investors with a time horizon of three years or more. Risk level is considered to be very conservative.

Typical Allocation: 100% Fixed Income/Money  Market.


CLASSIC TOTAL RETURN (20/80)

A passive asset allocation strategy designed to produce income and very modest capital appreciation. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting a 20% equity/80% bond market allocation. This portfolio is appropriate for investors with a time horizon of three years or more. Risk level is considered to be very conservative.

Typical Allocation: 20% Equity | 80% Fixed Income/Money Market.


CLASSIC INCOME & GROWTH (30/70)

A passive asset allocation strategy designed to produce income and minimal-to modest capital appreciation. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting a 30% equity/70% bond market allocation. This portfolio is appropriate for investors with a time horizon of three to five years. Risk level is considered to be conservative.

Typical Allocation: 30% Equity | 70% Fixed Income/Money Market.


CLASSIC CONSERVATIVE (40/60)

A passive asset allocation strategy designed to produce current income and moderate capital appreciation. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting a 40% equity/60% bond market allocation. This portfolio is appropriate for investors with a time horizon of three to five years. Risk level is considered to be moderately conservative.

Typical Allocation: 40% Equity | 60% Fixed Income/ Money Market.


CLASSIC BALANCED (60/40)

A passive asset allocation strategy designed to produce a balance of income and capital appreciation. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting a 60% equity/40% bond market allocation. This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be moderate.

Typical Allocation: 60% Equity | 40% Fixed Income/Money Market.


CLASSIC MODERATE GROWTH (70/30)

A passive asset allocation strategy designed to produce moderate capital appreciation. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting a 70% equity/30% bond market allocation. This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be moderate.

Typical Allocation: 70% Equity | 30% Fixed Income/ Money Market.


CLASSIC GROWTH (80/20)

A passive asset allocation strategy designed to produce long-term capital appreciation. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting an 80% equity/20% bond market allocation. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 80% Equity | 20% Fixed Income/Money Market.


CLASSIC GLOBAL GROWTH (80/20)

A passive asset allocation strategy designed to produce long-term capital appreciation with an emphasis on foreign equity exposure. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting an 80% equity/20% bond market allocation. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 80% Equity | 20% Fixed Income/Money Market.


CLASSIC AGGRESSIVE GROWTH (100/0)

A passive asset allocation strategy designed to produce long-term capital appreciation via the equity markets. The management team will seek equity ETFs and/or open ended mutual funds appropriate for a classically designed asset allocation strategy targeting a 100% equity/0% bond market allocation. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be aggressive.

Typical Allocation: 100% Equity | 0% Fixed Income/Money Market.


CUSTOM BOND Portfolio | $100,000 Minimum


Custom Bond

Custom-designed bond strategies designed to produce current income. The management team will seek fixed income securities that will provide current income given current market conditions and interest rate environments. This portfolio is appropriate for investors with a time horizon of three years or more. Risk level is considered to be very conservative.

Custom Bond solutions are offered in the following varieties:

  • Municipal Bond Ladder
  • Corporate Bond Ladder
  • Mixed Bond Ladder (Munis and Corporates)
  • iBond ETF Ladder (Passive, Minimum $10,000)

We will work with the advisor to determine which solution is most appropriate for the client. For example, a high net worth client that is particularly tax-sensitive would likely benefit from a Custom Municipal Bond Ladder.

Typical Allocation: 100% Fixed Income.

AMP SERIES | $25,000 Minimum


The models in the AMP series are strategic asset allocation portfolios designed to produce a balance of growth and income. The models utilize mutual funds as the investment vehicles with analysis and selection determined by the Sowell investment committee. The primary goal is to add alpha to the portfolio through selection and minor tilting. The models are rebalanced to their target allocations on an as-needed basis as determined by the Investment Committee.

SMS offers seven strategic AMP models: Bond, Income & Growth, Total Return, Conservative, Balanced, Growth, Global Growth, and Aggressive Growth. Each of these models vary by risk profile, utilizing a different blend of equity/fixed income/alternatives to achieve the appropriate risk profile.


AMP Bond (0/100)

A strategic allocation strategy designed to produce current income. The management team will seek fixed income and yield producing mutual funds and ETFs that will provide current income given current market conditions and interest rate environments. The investment committee may change allocations at any time and without notification. This portfolio is appropriate for investors with a time horizon of three years or more. Risk level is considered to be very conservative.

Typical Allocation: 0%-10% Equity | 100% Fixed Income/ Money Market.


AMP Total Return (20/80)

A strategic allocation strategy designed to produce income and very modest capital appreciation. This portfolio will invest in a diversified portfolio of fixed-income mutual funds and ETFs primarily invested in investment-grade securities, but may invest up to 10% of total assets in high-yield securities, up to 15% of total assets in foreign and/or emerging market debt securities. Dividend paying equity mutual funds and ETFs may also be considered for investment up to 20% of total assets. The investment committee may change allocations at any time and without notification. This portfolio is appropriate for investors with a time horizon of three years or more. Risk level is considered to be very conservative.

Typical Allocation: 0%-20% Equity | 80%-100% Fixed Income/ Alternative Investments.


AMP Income & Growth (30/70)

A strategic allocation strategy designed to produce current income with a secondary goal of minimal to moderate capital appreciation. Under normal market conditions the portfolio will be invested in diversified allocations of domestic and international bond and equity funds, and alternative investments. The investment committee may change allocations at any time and without notification. This portfolio is appropriate for investors with a time horizon of three to five years. Risk level is considered to be conservative.

Typical Allocation: 20%-30% Equity | 70%-80% Fixed Income/Alternative Investments.


AMP Conservative (40/60)

A strategic allocation strategy designed to produce current income and moderate capital appreciation. Under normal market conditions, the portfolio will be invested in diversified allocations of domestic and international equity and bond funds, and alternative investments. The investment committee may change allocations at any time and without notification. This portfolio is appropriate for investors with a time horizon of three to five years. Risk level is considered to be conservative.

Typical Allocation: 35%- 45% Equity | 55%‐65% Fixed Income/Alternative Investments.


AMP Balanced (60/40)

A strategic allocation strategy designed to produce a balance of income and capital appreciation. Under normal market conditions the portfolio will be invested in diversified allocations of domestic and international equity and bond funds, and alternative investments. The investment committee may change allocations at any time and without notification. This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered moderate.

Typical Allocation: 50-60% Equity | 40-50% Fixed Income/Alternative Investments.


AMP Growth (80/20)

A strategic allocation strategy designed to obtain long‐term capital appreciation. The portfolio is invested in diversified allocations of domestic and international equity and bond funds, and liquid alternative investments. The investment committee may change allocations at any time and without notification. This portfolio is designed for investors seeking long-term capital with moderate risk and is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 70%-80% Equity | 20%‐30% Fixed Income/Alternative Investments.


AMP Global Growth (80/20 with Global Emphasis)

A strategic allocation strategy designed to obtain long-term capital appreciation. The portfolio is invested in diversified allocations of domestic and international equity and bond funds (with a bias towards foreign), and alternative investments. This portfolio is designed for investors seeking long-term growth with moderate risk and is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 70-80% Equity | 20-30% Fixed Income/ Alternative Investments.


AMP Aggressive Growth (100/0)

A strategic allocation strategy designed to obtain long-term capital appreciation without regard for current income. The portfolio will be invested in allocations of domestic and international equity funds, and liquid alternative investments. The investment committee may change allocations at any time and without notification. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be aggressive.

Typical Allocation: 80%-100% Equity | 0%- 20% Fixed Income/Liquid Alternative Investments.


GLOBAL MACRO SERIES | $25,000 Minimum


The models in the Global Macro series are strategic asset allocation strategies designed to produce a balance of growth and income.  The Global Macro models employ a modified strategic asset allocation methodology that focuses on over/under weighting different asset classes based on the relative attractiveness as well as the risk/reward measure of each asset class. SMS offers two global macro models: Core and Growth. The models focus is on robust asset allocation using ETFs with a moderate emphasis on capital preservation during negative market environments.

The models are built in conjunction with Ned Davis Research and employ an unconstrained approach to the global macro style of asset allocation. Historical trend-forecasting macroeconomic indicators are used to evaluate the relative attractiveness of equities versus fixed income and portfolios are weighted accordingly. Portfolio allocations are reviewed weekly and re-balancing decisions are made quarterly. Exposure may be incrementally adjusted in the event of market shocks or external events.


Global Macro Conservative (40/60)

A strategic/tactical asset allocation strategy designed to produce a balance of income and capital appreciation, with a slight emphasis on income. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a strategic asset allocation strategy focused on a global macro approach. This portfolio incorporates a modest risk management strategy, is rebalanced quarterly or as deemed necessary, and is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be conservative.

Typical Allocation: 10%-40% Equity | 60%-90% Fixed Income/Commodities/Liquid Alternatives, Money Market.


Global Macro Core (60/40)

A strategic/tactical asset allocation strategy designed to produce a balance of capital appreciation and income. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a strategic asset allocation strategy focused on a global macro approach. This portfolio incorporates a modest risk management strategy, is rebalanced quarterly or as deemed necessary, and is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be moderate.

Typical Allocation: 10%-60% Equity | 40%-90% Fixed Income/Commodities/Liquid Alternatives, Money Market.


Global Macro Growth (80/20)

A strategic/tactical asset allocation strategy designed to produce long-term capital appreciation. The management team will seek fixed income and equity ETFs and/or open ended mutual funds appropriate for a strategic asset allocation strategy focused on a global macro approach. This portfolio is rebalanced quarterly or as deemed necessary and is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 10% – 80% Equity | 20% – 90% Fixed Income/Commodities/Liquid Alternatives, Money Market.

Multi-Cap


Flagship Equity | $100,000 Minimum

An individual equity selection strategy designed to obtain long-term capital appreciation in equities. The portfolio seeks its objective by normally investing at least 90% of its assets in common stocks of companies that have improving fundamentals (based on the SMS growth criteria) and/or whose stock is undervalued by the market (based on the SMS value criteria). The investment committee may change allocations to selection criteria at any time and without notification. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be aggressive.

Typical Allocation: 90%-100% Equity | 0%-10% Money Market.


Factor-Based


Flagship Dividend | $50,000 Minimum

 An individual equity selection strategy designed to produce long-term capital appreciation and a modest degree of current income. The portfolio seeks its objective by investing its assets in common stocks of companies with high expected dividend yields as well as long track records of earnings growth, dividend growth and low price betas. The investment committee may change allocations to selection criteria over time and without notification. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 90%-100% Equity | 0%-10% Money Market


 Flagship Value | $100,000 Minimum

 An individual equity selection strategy seeking long-term capital appreciation. The strategy is designed for deep asset value oriented investors. The emphasis is on stocks trading at low price to book multiples. The strategy seeks companies with improving multiples or for growth in the price of the stock as a result of continued positive reported earnings growth. This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be aggressive.

Typical Allocation: 90%-100% Equity | 0%-10% Money Market


International


Flagship International Stock and Sector Portfolio | $100,000 Minimum

A multi-strategy individual equity selection and ETF strategy designed to obtain long-term capital appreciation in foreign and domestic equity markets. The portfolio seeks it objective by investing in International Stocks and ETFs in order to obtain model exposure to companies, sectors and stock markets outside the United States. The model utilizes a multiple strategy approach for style diversification within the portfolio. The investment committee may change allocations to selection criteria at any time and without notification. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be aggressive.

Typical Allocation: 90%-100% Equity | 0%-10% Money Market.


Risk-Managed


Flagship Top Stocks Portfolio | $100,000 Minimum

A risk-managed, individual equity selection strategy designed to own the top rated stocks in terms of earnings strength and company/industry performance (as determined by SMS rating criteria) within each of the S&P 500 sectors. During severely negative market environments, a hedging strategy designed to reduce exposure to market risk will be implemented to attempt to preserve capital. The investment committee may change allocations to selection criteria at any time and without notification. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be aggressive.

Typical Allocation:  0%-100% Equity | 0%-30% Money Market.

TAP Series | $5,000 Minimum


TAP CONSERVATIVE

A tactical allocation strategy designed to seek long-term capital appreciation and to achieve moderate outperformance relative to both equity- only and to the benchmark consisting of 60% stocks and 40% bonds.   The management team will determine the proper allocation between equity market, bond market ETFs and/or open-ended mutual funds, and money market funds dependent on market conditions.  The conservative TAP program allocates one-half of the portfolio to the bond market and half to the tactical allocation strategy. This portfolio is appropriate for investors with a time horizon of five years to seven years.  Risk level is considered to be moderate. Management characteristics:

  • 50% allocation to bond market
  • 50% allocation to tactical allocation strategy
  • Tactical allocation decision tree:
  • Two market models determine allocation
  • When both models positive, tactical allocation 100% long stock market
  • When both models negative, tactical allocation is 100% cash
  • When models disagree, tactical allocation is 60% stocks and 40% bonds

Typical Allocation: 0%-100% Bond, 0%-100% Equity.


TAP STOCK/BOND 1X

A long-term tactical allocation strategy designed to seek long-term capital appreciation and to achieve significant outperformance relative to an equity-only benchmark.   The management team will determine the proper allocation between equity market, bond market ETFs and/or open-ended mutual funds, and money market funds dependent on disciplined market model readings.  No leverage is used in the TAP 1X portfolio. This portfolio is appropriate for investors with a time horizon of five years to seven years.  Risk level is considered to be moderately aggressive. Management characteristics:

Tactical allocation decision tree:

  • Two market models determine allocation
  • When both models positive, tactical allocation 100% long stock market
  • When both models negative, tactical allocation is 100% cash
  • When models disagree, tactical allocation is 60% stocks and 40% bonds

Typical Allocations: 0%-100% Equity, 60/40 Equity/Bond, or 0%-100% Money Market.


TAP US COMPLETE MARKET

A long-term tactical allocation strategy designed to seek long-term capital appreciation and to achieve significant outperformance relative to an equity-only benchmark.   The management team will determine the proper allocation between equity market, bond market ETFs and/or open-ended mutual funds, and money market funds dependent on disciplined market model readings.  No leverage is used in the TAP Complete portfolio.  The complete portfolio will utilize a combination of “timing” and “selection” by utilizing additional market indices within the system. This portfolio is appropriate for investors with a time horizon of five years to seven years.  Risk level is considered to be moderately aggressive. Management characteristics:

Tactical allocation decision tree:

  • Two market models determine allocation
  • When both models positive, tactical allocation 100% long stock market
  • When both models negative, tactical allocation is 100% cash
  • When models disagree, tactical allocation is 60% stocks and 40% bonds

Typical Allocations: 0%-100% Equity, 60%/40% Equity/Bond, or 0%- 100% Money Market.


TAP STOCK/BOND 2X

A long-term tactical allocation strategy designed to seek long-term capital appreciation and to achieve significant outperformance relative to an equity-only benchmark.   The management team will determine the proper allocation between equity market, bond market ETFs and/or open-ended mutual funds, and money market funds dependent on disciplined market model readings.  Leveraged ETFs/open ended mutual funds are used in the “TAP 2X portfolio.” Maximum leveraged long exposure in this portfolio will be 200%. This portfolio is appropriate for investors with a time horizon of five years to seven years.  Risk level is considered to be aggressive. Management characteristics:

Tactical allocation decision tree:

  • Two market models determine allocation
  • When both models positive, tactical allocation 100% long stock market
  • Leveraged long position added when “leverage trigger” also positive
  • When both models negative, tactical allocation is 100% cash
  • When models disagree, tactical allocation is 60% stocks and 40% bonds

Typical Allocation: 0%-200% Equity, 60/40 Equity/Bond, or 0%- 100% Money Market.


Additional Tactical Strategies


FOCUS HIGH YIELD | $5,000 Minimum

Designed for income and growth oriented investors, our Focus High Yield Strategy actively manages the risk/reward relationship of the high yield bond market. The program strives to maintain an invested position in the high yield market via index ETFs and/or mutual funds during positive market environments and to reduce exposure to risk during negative market environments. Sowell’s High Yield strategy has a long history, with the current strategy beginning in 2013.

The program employs an intermediate-term trend and momentum approach designed to enhance returns over a full market cycle. The strategy employs a strict stop loss system whose goal is to preserve capital during severe market downturns. The High Yield Strategy will utilize various high yield index-based ETFs as well as other bond classes at the discretion of the manager.This portfolio is appropriate for investors with a time horizon of five years to seven years. Risk level is considered to be moderate.

Typical Allocation: 0%-100% High Yield Bond | 0%-100% Money Market.


GLOBAL ALLOCATION | $50,000 Minimum

The objective of the Sowell Global Allocation ETF Portfolio is to achieve broad asset allocation to different asset classes while incorporating Tactical Allocation only to those asset classes that are strengthening.  The individual weighting of each asset class will depend on the overall trend of the market as well as the relative strength of the asset class to the overall market. The asset classes that are included are as follows: Domestic Equities, International Equities, Commodities, Currencies, Fixed Income, and Alternatives.

  • Employs a ranking system to identify relative strength across the major five asset classes and subsectors within those assets classes.
  • The asset classes are equally weighted: Domestic Equities, International Equities, Commodities, Currencies, Fixed Income, and Alternatives.
  • The asset classes are monitored daily for deviation from the equal weighting.  They will be rebalanced if the asset class moves outside of the set variance.
  • Each day the overall asset classes are ranked for relative strength.  From there each sector and subsector is ranked within the asset class to identify those areas that are showing the highest relative strength.

This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be moderate.

Typical Allocation: 50%-60% Equity | 40%-50% Fixed Income/Alternative Investments.


Diversified RMS | $25,000 Minimum

A long-term, multi-strategy tactical / liquid alternative portfolio designed to seek long-term capital appreciation and to reduced exposure to market risk during severely negative market environments. Commonly used as a risk management overlay with other Sowell strategies. The management team will determine the proper allocation to tactical / strategic / liquid alternative strategies employed in the portfolio. Allocation to strategies may change at any time without notification. The portfolio will utilize open ended mutual funds or ETFs in the equity, bond, commodity, liquid alternative and money markets. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 0%-67% Equity | 0%-33% Liquid Alternatives | 0%-13% Bonds | 0%-100% Money Market.

Alternative Series | $50,000 Minimum


ALTERNATIVE INCOME

The objective of the Sowell Alternative Income Portfolio is to target income above the rate of inflation with the potential for capital appreciation by drawing on a set of globally diversified assets. The secondary objective is to achieve broad asset allocation to different asset classes while incorporating tactical allocation only to those asset classes that are strengthening. The individual weighting of each asset class will depend on the relative strength of the asset class to the money market. Included asset classes are as follows: core fixed income, master limited partnerships, dividend stocks, precious metals, REITs, preferred stocks and currencies. This portfolio is appropriate for investors with a time horizon of five years to seven years. Risk level is considered to be moderate.

Typical Allocation: 0%-50% Equity | 0%-75% Fixed Income/Alternative Investments.


ALTERNATIVE DIVERSIFIED

A liquid alternative strategy designed to achieve long-term capital appreciation, by drawing on a set of globally diversified assets and alternative strategies. The individual weighting of each strategy will depend on the relative strength of the asset class to the Money Market. The asset classes that are utilized include managed futures, long/short equity, and various arbitrage strategies. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation: 0%-100% Liquid Alternative Investments.


Alternative Growth

A liquid alternative strategy designed to achieve long-term capital appreciation, by drawing on a set of globally diversified assets and liquid alternative strategies. The individual weighting of each strategy will depend on the relative strength of the asset class to the Money Market. The asset classes that are utilized include: managed futures, long/short equity, and various arbitrage strategies. This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be aggressive.

Typical Allocation: 0%-100% Liquid Alternative Investments.

MPD™ Models | $250,000 Minimum


Trademarked by Sowell Management Services, MPD™ represents a modern approach to diversification and portfolio design. The traditional asset allocation approach (commonly known as MPT or Modern Portfolio Theory) diversifies a portfolio solely by asset class. The MPD™ approach diversifies portfolios by investing methodology (passive, strategic, tactical, equity selection, and liquid alternatives), investing strategy, manager/research provider, and by investing time frame.

The primary goals of MPD™ are to:

  • Diversify across multiple strategies, managers, methodologies, and time frames.
  • Avoid the “8 buckets of white paint” diversification.
  • Protect against the singular failure.
  • “Smooth out the ride” given variable market conditions.
  • Hold your diversified strategies and be able to sleep at night!

Below is an example of the type of diversification a Sowell MPD™ allocation brings to the table versus the industry-standard “diversified” portfolio:

Sowell’s MPD™ models have been designed to meet an array of goals and risk tolerances for investors with account sizes of $250,000 and above.  In addition, our Portfolio Design Team is available to customize portfolios for investors with $500,000 or more.

Below are descriptions of Sowell’s MPD™ models. Note that ALL Modern Portfolio Diversification™ (MPD™) models employ multiple investing methodologies, strategies, managers and time frames. Please note that the SMS investment committee constantly monitors and review all MPD™ models and may change allocations to specific portfolio strategies at any time and without notification.


MPD™ Total Return

The portfolio is designed to produce current income with a secondary goal of modest capital appreciation. The MPD™ Total Return portfolio includes strategic allocation programs (Sowell AMP Bond and Sowell Custom Bond), equity selection (Sowell Flagship Dividend), tactical allocation (Sowell Focus High Yield), and liquid alternatives (Sowell Alternative Income and Sowell Alternative Diversified).  This portfolio is appropriate for investors with a time horizon of three years or more. Risk level is considered to be very conservative.

Typical Allocation: 15% Equity | 85% Fixed Income/Alternative Investments/Money Market.


MPD™ Income & Growth

The portfolio is designed to produce current income with a secondary goal of minimal-to moderate capital appreciation. The MPD™ Income & Growth portfolio includes strategic allocation programs (Sowell AMP Income & Growth and Sowell Global Macro Core), equity selection (Sowell Flagship Dividend), tactical allocation (Sowell Focus High Yield), and liquid alternatives (Sowell Alternative Diversified).   This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be conservative.

Typical Allocation range is: 29% – 35% Equity | 65% – 71% Fixed Income/Alternative Investments/Money Market.


MPD™ CORE Conservative

The portfolio is designed to produce current income with a secondary goal of moderate capital appreciation. The MPD™ CORE Conservative portfolio includes strategic allocation programs (Sowell AMP Conservative and Global Macro Conservative), equity selection (Sowell Flagship Dividend), and tactical allocation (Sowell Focus High Yield and Sowell TAP Conservative). This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be conservative.

Typical Allocation range is: 28% – 45% Equity | 55% – 72% Fixed Income/Money Market.


MPD™ Conservative

The portfolio is designed to produce current income with a secondary goal of moderate capital appreciation. The MPD™ Conservative portfolio includes strategic allocation programs (Sowell AMP Conservative and Global Macro Core), equity selection (Sowell Flagship Dividend), tactical allocation (Sowell Focus High Yield and Sowell TAP Conservative), and liquid alternatives (Sowell Alternative Diversified).   This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be conservative.

Typical Allocation range is: 33% – 45% Equity | 55% – 67% Fixed Income/Alternative Investments/Money Market.


MPD™ CORE Balanced

The portfolio is designed to produce a balance of current income with capital appreciation. The MPD™ Balanced portfolio includes strategic allocation programs (Sowell AMP Balanced and Sowell Global Macro Core), risk-managed equity selection (Sowell Flagship Top Stocks), and a tactical allocation program (Sowell TAP Complete). This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be moderate.

Typical Allocation range is: 33% – 78% Equity | 35% – 67% Fixed Income/Money Market.


MPD™ Balanced

The portfolio is designed to produce a balance of current income with capital appreciation. The MPD™ Balanced portfolio includes strategic allocation programs (Sowell AMP Balanced and Sowell Global Macro Core), equity selection (Sowell Flagship Equity), tactical allocation (Sowell TAP Complete), and liquid alternatives (Sowell Alternative Diversified).   This portfolio is appropriate for investors with a time horizon of five to seven years. Risk level is considered to be moderate.

Typical Allocation range is: 40% – 65% Equity | 35% – 60% Fixed Income/Alternative Investments/Money Market.


MPD™ CORE Growth

The portfolio is designed to produce long-term moderate capital appreciation. The MPD™ Growth portfolio includes strategic allocation programs (Sowell AMP Aggressive and Sowell Global Macro Growth), equity selection (Sowell Flagship Equity), and tactical allocation (Sowell TAP 2X Stock/Bond).  This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation range is: 50% – 120% Equity | 0% – 50% Fixed Income/Money Market.


MPD™ Growth

The portfolio is designed to produce long-term moderate capital appreciation. The MPD™ Growth portfolio includes strategic allocation programs (Sowell AMP Aggressive and Sowell Global Macro Growth), equity selection (Sowell Flagship Equity), tactical allocation (Sowell TAP Stock/Bond), and liquid alternatives (Sowell Alternative Growth).   This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation range is: 50% – 80% Equity | 20% – 50% Fixed Income/Money Market.


MPD™ Global Growth

The portfolio is designed to produce long-term moderate capital appreciation. The MPD™ Growth portfolio includes strategic allocation programs (Sowell AMP Global Growth), equity selection (Sowell Flagship International Stock and Sector), tactical allocation (Sowell TAP Stock/Bond and Sowell Global Allocation), and liquid alternatives (Sowell Alternative Growth).  This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be moderately aggressive.

Typical Allocation range is: 50% – 80% Equity | 20% – 50% Fixed Income/Alternative Investments/Money Market.


MPD™ Aggressive Growth

The portfolio is designed to produce long-term capital appreciation. The MPD™ Aggressive Growth portfolio includes strategic allocation programs (Sowell AMP Aggressive), equity selection (Sowell Flagship Equity), and tactical allocation (Sowell TAP Stock/Bond 2X).   This portfolio is appropriate for investors with a time horizon of seven to ten years. Risk level is considered to be aggressive.

Typical Allocation range is: 60% – 130% Equity | 0% -40% Fixed Income/Money Market.


PPP Models | $250,000 Minimum


These multi-manager/strategy portfolios are strategic in nature. The programs include individual stocks, individual bonds, cash and alternative investments is designed specifically for the needs of the high net worth investor. The manager creates a portfolio based upon the investor’s risk tolerance, liquidity needs, time horizon, tax considerations, and other factors.

The portfolio offers additional features over and above investment management that can be utilized by each client who has a particular, specific need, including but not limited to, cash management, tax management, restriction of holdings because of concentrated positions outside of the account, etc.


PPP Conservative

Provides current income with a secondary objective of capital appreciation to preserve long-term purchasing power. The typical portfolio contains domestic and international small and large cap equities, fixed income instruments, and alternative investments.

Typical Allocation: 35%-45% Equities, | 0%-30% Fixed Income/Alternative Investments/Money Market


PPP Balanced

Provides capital appreciation to preserve long-term purchasing power with a secondary objective of current income. The typical portfolio contains domestic and international small and large cap equities, fixed income instruments, and alternative investments.

Typical Allocation: 50%-60% Equities, | 0%-40% Fixed Income/Alternative Investments/Money Market


PPP Growth

Provides long-term capital appreciation along with a similar allocation to more stable income-producing investments. This typical portfolio contains a domestic and international small and large cap equities, fixed income instruments, and alternative investments.

Typical Allocation: 70%-80% Equities, | 0%-20% Fixed Income/Alternative Investments/Money Market


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 For more information on our portfolio solutions, including portfolio materials, performance, and more, please inquire and we will be happy to provide additional information.