WORKING WITH WELA
Wela provides a steady stream of communication and education to ensure advisors are able to speak knowledgably and answer all client questions about our philosophies, strategies and methodologies. Wela’s models can be found on the SMA platforms at Charles Schwab, Fidelity Investments and TD Ameritrade, and all strategies can also be accessed on Envestnet and via Placemark. Our ETF portfolios cover three areas: growth, balance and income. Our Own Your Age (OYA) portfolios fill the growth and balance needs, while our own unique blend of funds provide income.
The OYA portfolios strive to allocate investors’ portfolios based on their current ages. As investors get closer to retirement, they should move towards a more conservative allocation. The more conservative investors’ allocations, the higher the percentage of fixed income investments they should hold.
Within the growth allocation, we have the all-growth OYA 20 and OYA 30 models, which are geared more towards investors with an ability and willingness to take on risk. Wela implements their specialty sector rotation strategy within these models and makes macro decisions as to which areas of the market to over- and under-weight.
The balanced models include OYA 40, OYA 50 and OYA 60. These are more broad allocations relative to the growth allocations and look to gain an edge on their respective benchmarks via strategic shifts among macro areas of the market. These models work well for individuals who have some tolerance for risk but are trying to grow their asset base for retirement.
Our income models include OYA 70 and two specialty income models: Conservative Yield and Agg Yield. The Conservative Yield model is geared toward the investors who have a low risk tolerance but need to generate some income on their investments. This model does have fluctuations in value, but tries to limit the volatility relative to Wela’s other strategies. Agg Yield is an income-only model that uses both ETFs and closed-end funds to provide a good substitute for high-yield allocation in a portfolio. Investors in this portfolio must accept some risk, as this model will be more volatile than the Conservative Yield portfolio. The primary focus is income generation with a secondary focus on capital preservation. With the strategic allocation decisions within fixed income, closed-end funds and alternative sources of income, the Wela Investment Committee strives for a 5% – 7% yield in this portfolio.