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Strategies

Strategies

Our risk-management investment approach seeks to protect and grow wealth in any market.

Overview

Our wide spectrum of investment options gives us the ability to offer an array of customized solutions to suit investor risk tolerance, investment objectives and timeline horizons.

Brookstone Capital Management Strategies

We provide a wide spectrum of investment options to help advisors develop and implement actively managed long-term investment strategies for individual investors. We seek to maintain a risk-managed approach toward investing, and our portfolios range from conservative to moderate to growth to allow for investor risk tolerance preferences.

See glossary of terms below

Please see disclosure below

Brookstone Capital Management Strategies

  • Our RAISE 360° Select Models are designed to adhere to proper diversification and risk appropriate portfolio selection across market cycles.
  • Built utilizing the entire Strategic + Tactical investment universe and financial intelligence available on BCM's expansive platform.
  • Designed to help investors consistently exercise patience and discipline throughout changing investment markets.

The investment objective of the Municipal Bond Portfolio strategy is to provide current income that is exempt from federal personal income taxes and to preserve investors’ principal. This strategy uses open-ended mutual funds to gain exposure to multiple managers with different fund objectives. 

The Bond Portfolio strategy holds only individual investment grade corporate bonds or municipal bonds, and is a laddered fixed income strategy whereby multiple bonds are purchased, each with different maturity dates.

Structured Notes consists of a debt security linked to the performance of a reference asset (equity, basket of equities, equity index, commodity, commodity index, or foreign currency). Among the variety of structures available, most aim to help investors achieve the following primary objectives: minimize the loss of principal, generate higher yields, or participate in enhanced returns. 

The Market-Linked CD strategy (MLCDs) provides investors with exposure to market-based returns linked to any one or more asset classes using FDIC-Insured, principal-protected MLCDs.

Brookstone Sub-Advisors

BCM partners with innovative, independent investment firms to offer access to a select yet diverse range of investment strategies. These sub-advisors, which share our same approach toward risk management, are able to offer investment options that are tailored to investors’ financial goals and objectives.

See glossary of terms below

Please see disclosure below

Brookstone Sub-Advisors

A full-market tactical solution with embedded risk management: 

  • Designed to protect investors from severe losses in down markets while providing quality participation in rising markets 
  • Seeks significantly reduced downside risk and maximum drawdowns, highly asymmetrical investment returns, and typically low correlation to traditional indices and asset classes

Providing a dynamic response to changing markets: 

  • A flexible investment strategy designed to maintain a stable portfolio risk profile by adapting to the characteristics of any market environment–whether bullish or bearish 
  • Utilizes the proprietary Canterbury Volatility Index (CVI) to continuously monitor market states and ensure that investor goals are being maintained

Diversified return opportunities with potentially lower volatility: 

  • Analyzes a diverse universe of mutual funds, resulting in a comprehensive assessment of risk and reward to help navigate today’s turbulent markets
  • Tactical asset allocations and active management anticipate changing opportunities in various asset classes to ensure that the portfolio remains in line with investor goals

Socially responsible, all-equity enhanced index strategies:

  • Seeks to achieve out-performance by applying quantitative overlays to either the MSCI USA Catholic Values or MSCI KLD 400 Social Indexes, which are selected largely on qualitative characteristics
  • Designed for investors who seek equity ownership in alignment with the moral and social teachings of the Church or exposure to U.S. companies that have positive environmental, social, and governance (ESG) characteristics

Targeting consistent outcomes via lower volatility:

  • Generate income and maximize long-term total return
  • Seek risk-adjusted returns uncorrelated to broad markets
  • Active management attempts to enhance returns through proprietary hedging strategies

Seeks to tactically balance between yield and volatility: 

  • Absolute return focus has flexibility to move 100% to cash in downward trending markets
  • Relative return focus maintains significant equity exposure in upward trending markets

A hedged equity approach to returns in volatile markets: 

  • Designed with components which are intended to profit and protect client equity in nearly any market condition, up, down or flat 
  • Utilizes an index-based methodology that allows investors to capture long-term growth by investing in a broad-based index fund (S&P 500®), with an options overlay strategy to protect and enhance the portfolio 

Seeks to provide income from put option sales: 

  • Tactical strategy adjusts investment positions and universe based on market conditions and trading opportunities
  • Strategy direction is determined by a bullish, bearish, or neutral sentiment derived through fundamental analysis

Tactical dividend strategy for low yield conditions:

  • Entirely rules based and transparent methodology
  • Dynamically allocates between stocks and cash based on market conditions
  • Active management helps portfolios to stay aligned with investor goals

Partnerships with Large Firms

BCM has partnered with some of the largest money managers in the world, including BlackRock, Guggenheim, and Morningstar to offer investors multiple strategies from their wealth of managed portfolios. These associations provide additional investment options that are based on a wide base of investment intelligence that relies on rigorous global data and research practices.

See glossary of terms below

Please see disclosure below

Morningstar Partnership

  • Low-cost access to investment grade corporate bonds with defined maturity dates.
  • Provide exposure to diversified portfolios of bonds and allow investors to avoid concentration issues with selecting individual bonds.
  • Offer an easier way to build and maintain bond ladders.
  • A suite of fixed-income ETFs designed to combine the precision of individual bonds with the advantages of ETFs.
  • By investing through an ETF, investors now have cost-effective and convenient access to comprehensive portfolios of bonds that may have previously been unavailable to them.
  • With consecutively maturing ETFs ranging from 2016 to 2025, Guggenheim BulletShares ETFs offer flexibility to build bond ladders and manage interest rate risk for a wide range of client needs
  • Combining powerful, objective stock analysis with veteran portfolio management expertise, these portfolios seek to outperform the S&P 500 Index using a well-defined and disciplined approach to stock-picking.
  • A simple way to build a diversified core portfolio based on conservative risk considerations using one low-cost fund.
  • Harness the experience of BlackRock and the efficiency of iShares ETFs to get a broad mix of bonds and global stocks.
  • Use to establish a long-term, balanced portfolio and combine with other funds for particular needs like income.
  • By bucketing asset classes by investment objective, iShares Strategic ETF portfolios can help bring different components of your portfolio together to help achieve your life goals.
  • Built with the end goal in mind, these portfolios offer investors the flexibility to build foundational portfolios or complement an existing strategy.
  • Investors can choose from cost-effective mutual fund/ETF or ETF-only portfolios to align with your preferred investment approach.
Our Broad Universe of Solutions

Our Broad Universe of Solutions

  • Stocks
  • Bonds
  • Market-linked CDs
  • Mutual funds
  • Exchange traded funds (ETFs)
  • Retirement planning
  • 401(k) programs
  • Managed portfolios
  • REITs
  • Unit Investment trusts
  • Variable annuities
  • Structured products
  • Hedged equity strategies

Glossary

 

Bear Market: A market in which prices are declining. A "bear" is a person who expects that the market or the price of a particular security will decline.

Call Options: An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase.

Canterbury Volatility Index (CVI): Measures the market’s volatility or emotional state. A CVI reading below 90 reflects a stable or rational market. A CVI above 90 reflects an emotional market.  Investors may not make direct investments into an index.

Drawdown:  The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough.

ETF: An exchange-traded fund (ETF) is security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated once at the end of every day like a mutual fund does.

Index-Linked Certificate Of Deposit:  A certificate of deposit (CD) with a return based on a specific index. These CDs are purchased for a fixed price and are FDIC insured.  Reference to an index does not imply that the strategy will achieve returns, volatility or other results similar to that index. The composition of the index may not reflect the manner in which a strategy is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change.  Investors may not make direct investments into an index.

MSCI KLD 400 Social Index: Comprises securities of large, mid and small cap U.S. companies with high Environmental, Social and Governance (ESG) ratings and excludes companies involved in Alcohol, Gambling, Tobacco, Military Weapons, Civilian Firearms, Nuclear Power, Adult Entertainment, and Genetically Modified Organisms (GMO). The Index aims to serve as a benchmark for investors whose objectives include owning companies with very high ESG ratings and avoiding companies that are incompatible with specific values-based criteria.  Reference to an index does not imply that the strategy will achieve returns, volatility or other results similar to that index. The composition of the index may not reflect the manner in which a strategy is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change.  Investors may not make direct investments into an index.

MSCI USA Catholic Values Index: A free float-adjusted market capitalization index consisting of 400 companies designed to be used as a U.S. equity benchmark for Catholic investors who seek equity ownership in alignment with the moral and social teachings of the Catholic Church. The composition of the index may not reflect the manner in which a strategy is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change.  Investors may not make direct investments into an index.

Open-End or Mutual Fund Investment Company:  This is a company which uses its capital to invest in other companies. Open-end, or mutual funds, sell their own new shares to investors, buy back their old shares, and are not listed for trading on a stock exchange. Open-end funds get their name because their capitalization is not fixed and they normally issue more shares as people want them.

Options: A purchaser of an option has the right, but not the obligation, to buy or sell certain securities at a specified price within a specified time.

Real Estate Investment Trust (REIT):  An investment vehicle that invests funds on behalf of its investors in real estate-related investments such as construction loans, mortgages, land and real estate company securities.

S&P 500 Index: An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. Companies included in the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's.  Reference to an index does not imply that the strategy will achieve returns, volatility or other results similar to that index. The composition of the index may not reflect the manner in which a strategy is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change.  Investors may not make direct investments into an index.

Time Decay: The ratio of change in an option's price to the decrease in time to expiration of the option which occurs because the probability of that option being profitable is reduced.