NEW CWM Investment Strategies

As you’ve likely heard many times, CWM’s investment philosophy focuses on our concept of Real Returns: the risk-adjusted return necessary for you to pursue your financial and lifestyle goals. For years, CWM has focused on managing and mitigating risk, using sophisticated data modeling and a proprietary algorithm to drive Real Returns for our client portfolios.

That is not changing. But we are expanding our horizons and the opportunities available for clients when it comes to choosing their investment adventure.

To offer a more bespoke investing experience, we’re introducing a menu of investment models – including a timely way to save – tailored to our clients’ different life stages and preferences. These models offer a range of options for our clients to experience the market in a way that is right for them.

Each life stage has a specific objective - or goal. The current stage's objective always remains the primary focus, even as it builds upon the prior stage's objective/goal.

The CWM investment models range from lower to higher risk:

• Risk-Adjusted Model (RAM). The most risk averse of the CWM models, our core investment methodology that many clients have already adopted. The focus in the RAM strategy is lifestyle maintenance, with the goal of avoiding catastrophic losses as opposed to capturing all potential gains. It’s best suited for retirees and those who are close to their preservation and/or distribution phase of investing, as well as investors of any age who would like to preserve the value of funds they’ll need in the short to medium term.
• Tactical Allocation Model (TAM). Think of this as a moderate-risk strategy for medium-term money. The TAM strategy adjusts investment options on a micro level, with limits and boundaries to mitigate risk. TAM is best suited to people well into their working years, seeking to strike a balance, protecting their hard-earned portfolios while they continue to make contributions and grow their investments before retirement.
• Global Allocation Model (GAM). The Global Allocation Model, also known as the Go Anywhere Model within CWM, is for investors who seek the most responsive, unconstrained, and proactive strategy option available at CWM. Unlike other models, it doesn't follow any macro or micro policy constraints but focuses on individual investment weightings based on machine learning data models. Like with other active CWM strategies, the primary aim is to minimize risks during market downturns and take advantage of positive market conditions compared to historical patterns.
• Wealth Accumulator Model (WAM). With the highest level of risk and the highest potential for market upside, the WAM strategy is best suited to people who are early in their career and have time on their side to make up for potential losses tied to market downturns. This more traditional approach to investing can help grow your nest egg in the early years- before you shift to lower-risk strategies.

All models use data analysis to select optimal positions, and all are risk-adjusted to some extent. CWM’s decision-making around investment strategy always starts with our detailed, intentional planning process to identify clients’ individual goals.

Plus, it’s important to remember that no one strategy works in all markets. Different approaches shine in different conditions. Some individuals and families may choose to utilize multiple models within their portfolio, depending on their needs and goals for those funds.

Rethinking returns with Extended Savings

In addition to our menu of investment models, CWM’s Extended Savings Program is intended to help clients take advantage of favorable but rare interest rate conditions in today’s money market fund environment. It may be a good option for long-term cash reserves currently held in your personal bank and/or savings account at a low interest rate.

Extended Savings accounts offer the opportunity for clients to maximize the benefits of certain money market mutual funds that provide high liquidity, growth from interest, and relatively low risk – all facilitated through CWM and linked to your CWM managed portfolio.¹

Time-tested philosophies

While these models offer new options for clients, what hasn’t changed is CWM’s proprietary data-driven approach paired with our core investment philosophies:

• We are not trying to beat “the market” on the upside.
• Downside protection (limiting losses) is more important than upside participation (capturing all gains).
• Expensive things are dangerous.
• Buying low reduces risk and creates opportunity.

You can find more details about each investment strategy via the newly expanded section of our website here. To learn more about the investment strategies and savings options, sign up to attend our webinar on Thursday, October 12 or Contact Us.

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¹ No investment strategy can guarantee a profit or protect against loss. Money Market Fund past performance does not guarantee future results. Bond prices can fluctuate as markets change, which can affect the value of the fund. Bond values can be less if sold prior to maturity. Money market funds are managed to maintain a stable $1 share price. Investments in these funds are neither insured nor guaranteed by the U.S. government, and there can be no assurance that the funds will be able to maintain a stable net asset value of $1 per share.