Advisor Solutions

Disciplined Approach To Portfolio Construction

Laffer Tengler Investments’ Advisor Solutions offers relationship management services to Financial Advisors

At Laffer Tengler Investments, our Relationship Managers are here to assist by offering Proprietary Investment solutions and industry trends from our Nationally recognized Investment Management Team.

Our Practice Management Education includes:

  • One-on-One Education  on Strategy Overview and Philosophy
  • Investment Strategy Meetings with you and your clients hosted by our team.
  • Custom Events to create a better partnership between you, your clients and the Laffer Tengler Team.
  • Access to Laffer Tengler Investments’ Women and Wealth Client Financial Education program based on the lessons and research of Nancy Tengler, our Chief Investment Officer and author of The Women’s Guide to Successful Investing.
  • Access to Laffer Tengler Investments’ Women in Financial Services.This program focuses on providing women in our industry the tools they need to succeed. The program includes content that can be integrated into your own internal communication schedule and in-person or virtual speaking opportunities.
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Our Equity Strategies

Concentrated Equity

The Concentrated Equity Strategy is a low-turnover, high conviction, deeply concentrated portfolio that holds the 12 “best idea” positions from the Equity Growth and Equity Income strategies. The Equity Growth strategy invests in large-cap U.S. stocks with growth as a primary objective and income as a secondary focus. The Equity Income strategy also invests in large-cap U.S. stocks, but with a primary focus on income, and growth as a secondary objective. Both Equity Growth and Equity Income select and invest in securities based on our proprietary buy/sell research disciplines and rigorous 12 Factor analysis process.

Strategy Leader: Nancy Tengler  Strategy Team Member: David Jeffress

Dividend Growth

The Dividend Growth Strategy utilizes a bottom-up, fundamental investment approach to provide clients with a diversified portfolio of businesses with a primary focus on a competitive current yield and growing dividend income.  The management team employs a consistent buy-and-sell discipline based on core business fundamentals such as: valuation, cash flow generation, long-term growth opportunity, and dividend policy. The strategy can invest in U.S. publicly traded equities including common stocks, American Depositary Receipts (ADRs), Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs), and Business Development Corporations (BDCs).

Available with or without K-1 generating partnerships.

Strategy Leaders: Steven F. Shepich, CFA®, CPA & Nancy Tengler
Strategy Team Member: 
David Jeffress

Equity Growth

The Equity Growth strategy invests in large-cap U.S. Stocks. The strategy’s primary objective is growth of capital with a secondary focus on income. The strategy seeks to own high-quality large cap stocks with attractive valuations based on our proprietary buy/sell research disciplines. The benchmark is the S&P 500.

Strategy Leader: Nancy Tengler  Strategy Team Member: Jonathan Berkowitz

Equity Income

The Equity Income portfolio is predominately a large-cap equity portfolio with an emphasis on dividend income and dividend growth as well as capital appreciation. The strategy seeks to own high quality large-cap stocks that are undervalued based on our proprietary valuation and research disciplines. Our time-proven buy/sell discipline, Relative Dividend Yield, identifies discreet periods of over- and under-valuation, security by security, supported by our rigorous, proprietary 12 factor research approach. The strategy typically holds 25-30 stocks, enjoys an above market and growing dividend yield, and low turnover.

Strategy Leader: Nancy Tengler  Strategy Team Member: David Jeffress

Global Equity

The Global Equity Strategy is a multi-factor econometric discipline that uses macroeconomic processes and models to evaluate countries for broad market investment opportunities.  The strategy analyzes and evaluates macroeconomic and financial data in conjunction with real and expected changes to public policy in order to create a ranking of those countries that are expected to have the most attractive potential for total return.  The rankings incorporate not only quantitative analysis but also qualitative assessments of expected or potential changes.  Lastly, the investment team reviews any potential or actual special situations that could affect a country’s outlook based upon non-fundamental factors (i.e. political crisis, trade disputes, etc.)

This strategy uses exchange traded funds (ETF’s) to implement the investment process. The portfolio construction process is designed to create a model portfolio containing eight or more countries.  Countries are equally weighted across the entire portfolio and typically receive an approximately 12.5% allocation each for new or rebalanced accounts.  Approximately 25% or less of a new or rebalanced portfolio may be allocated to emerging market countries.  Country selection typically involves selecting securities that represent a significant portion of the country’s total market capitalization.  This typically leads to portfolios that are well diversified at the underlying security level but are still fairly concentrated at the country level, relative to the listed benchmark of the MSCI EAFE Index. The Global Equity Strategy is not inherently biased towards any particular style, for example value or growth, but may be characterized from time to time as such.

Strategy Leader: Arthur B. Laffer, Jr.  Strategy Team Member: Nancy Tengler

Our Income Strategies

Convertible

The Convertible Strategy is a bottom up, value driven discipline that utilizes convertible bonds and convertible preferred stocks to seek out opportunities for maximizing total return. The portfolio construction process starts by segmenting the convertible universe by credit quality. The strategy aims to maintain an average credit rating of BBB.

A two-pronged analysis is conducted on potential candidates. The first prong of the analysis focuses on the convertible security and evaluates its classification (yield alternative, total-return alternative, and equity alternative), horizon analysis, theoretical value, and investment value, along with external research analysis. The second prong focuses on the underlying common stock associated with the convertible security and stresses analysis of the company fundamentals generated by internal research as well as external research.

The investment process uses a disciplined approach in analyzing changes to any combination of the following areas: company earnings, convertible valuation, credit erosion, equity valuation, and convertible valuation. Portfolios typically contain between 30 to 50 securities. Risk is actively managed by the investment team in relation to portfolio exposure by company, security, sector as well as other metrics specific to convertible securities.

Strategy Leader: J. Stanley Rogers, Jr.
Strategy Leader: Jason P. Weaver, CFA®

Dynamic U.S. Inflation

The Dynamic U.S. Inflation Strategy is a quantitatively-based strategy that utilizes macroeconomic and financial information to create portfolios that seek to outperform the rate of U.S. inflation (measured by Consumer Price Index or CPI) over a full market cycle of 3-5 years.

This strategy employs proprietary models to evaluate data over the course of the portfolio construction process. The portfolios are built using ETFs, and these funds can cover a variety of assets, sectors, assets types, and categories depending on the current inflationary environment as determined by Laffer Tengler Investments. This exposure can include, but is not limited to, domestic stocks, foreign stocks, broad market indices, commodities, bonds, currencies, and cash.  Positions can be held long and short.

ETF’s that sell short underlying securities or utilize leverage may be far more volatile and may potentially lose value in excess of non-leveraged or long only securities.

Strategy Leader: Arthur B. Laffer, Jr.
Strategy Leader: Jason P. Weaver, CFA®

Fixed Income

The Fixed Income Strategy utilizes Exchange Traded Funds (ETFs) with underlying investments in fixed-income securities to create each portfolio. The primary objective of these portfolios is to seek a competitive current level of income, with a secondary objective of price appreciation. Portfolio duration and sector allocation are actively managed to maximize the potential for total return. Fixed income ETFs are used in this strategy because they compliment a macro-economic, top-down approach to investing. Since ETFs are traditionally designed to allow for one investment instrument represent an entire index or sector, exposure to the broad fixed-income market can be obtained with just a few ETF positions. ETFs also allow for portfolio duration and sector allocation to be rebalanced without liquidity risk or excessive trading costs. The Fixed Income Strategy is a research driven, diversified portfolio using Laffer Tengler’s proprietary data, known as the Economic Chartbook. The Economic Chartbook is a compilation of numerous macroeconomic variables, which are analyzed to forecast the fixed-income market’s reaction to current and future market conditions. The Economic Chartbook is the result of decades of experience in top-down, supply-side research and analysis, and is published on a monthly basis. Three key area of macro-economic research are used by the investment team to construct the optimal fixed-income portfolio:

  1. Economic Growth Indicators
  2. Federal Reserve Monetary Policy
  3. Inflation Barometers

Strategy Leader: Arthur B. Laffer, Jr. & Jason P. Weaver, CFA®
Strategy Team Member: Jonathan Berkowitz

Interested in learning more?







    Separately Managed Accounts (SMA) vs. Mutual Funds

    In a Separately managed account (SMA) clients purchase shares of individual securities within a strategy, not shares in a mutual fund, so each account has ownership in the respective company. In contrast, an investment in a mutual fund only gives the investor shares of the mutual fund rather than shares of each individual security.

    How does that affect your clients?

    Nancy Tengler explains in her book The Women’s Guide to Successful Investing:

    As a shareholder in a mutual fund, you participate in the fund on a pro rata basis with all other mutual fund shareholders. Think of the homeowner’s association of a condo complex. Everyone shares in the expenses together. If the roof over Unit 4C is leaking, the collective funds of the community pay for the repair. If a mutual fund manager takes capital gains, each shareholder reaps their corresponding portions of the tax liability for the capital gains. Those gains or losses are typically calculated after the October 31st fiscal year end most funds observe. As an investor you are unable to plan for potential gains or losses or capital distributions made by the fund, creating a potentially unknown tax liability.

    Women & Wealth Initiative

    According to the Bureau of Labor Statistics’ most recent workforce survey, the percentage of women financial advisors stood at 31%, up nearly 83% since 2018 when the number stood at just 17%. At Laffer Tengler Investments, we are committed to supporting this growth through a Women & Wealth initiative led by Nancy Tengler, our Chief Investment Officer. The initiative includes both a client-focused program and a program designed specifically for women financial advisors. 

    Nancy is a well-known financial expert who has been educating women about the importance of financial literacy for over three decades. This program, designed specifically for Financial Advisors, focuses on leadership training, mentorship, and education. The Laffer Tengler Investments’ team is available for speaking engagements, events, and webinars with the goal of Empowering Women to Achieve & Maintain a Secure Financial Future. 

    The program aims to inspire and provide actionable practice management tools for women financial advisors, whether she is building a practice or has been in business for a while.
     
    – Fernanda Hailey
    Senior Managing Director

    Advisor Solutions Management

    Fern_Hailey 200x300

    Fern Hailey

    Senior Managing Director, Advisor Solutions and Private Asset Management

    Fern has over 25 years experience in the Financial Services Industry advising both Institutional and Non-institutional clients. She is known for providing concrete investment philosophy and strategies that work in concert with the client’s overall Wealth Management goals.

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