|3Y Investment Windows Annualized (Jan 2011 to July 2022)||Avg Return||# of Windows||Win %||Max Return||Min Return|
* All Time inception is 1/1/2011. Performance annualized for periods greater than one year. All performance is modified and therefore hypothetical even if derived from actual client accounts. Performance has been modified to show the effects on performance with and without our hedging overlay (see FAQs) and a lower maximum advisory fee of 1%. Please read important disclosures.
Open and fund your account - takes five minutes.
We'll automatically invest your money in the SmartPilot strategy you choose (hedged or long).
Link external accounts to add or remove funds any time with 24/7 online access.
The SmartPilot strategy uses our proprietary Clone Score methodology to score and select managers with the highest performance potential. We score our universe of managers twice per year, select the 10 managers with the highest score, then, using their regulatory filings, select each managers’ three largest positions. We then equal weight the portfolio and rebalance it quarterly based on the latest crop of filings. We offer the strategy as long only or hedged (see next question).
At the end of every month the strategy evaluates its allocation based on whether the S&P 500 is above or below its 200 day simple moving average.
The table below summarizes the strategy's allocation rules:
|"Equity" Indicator||S&P 500 closes above its 200 simple moving average at any month end.||The following month the strategy will allocate 100% to an ETF that seeks to track the AlphaClone Hedge Fund Masters Index (ALFMIX) ("Equity").|
|"50/50" Indicator||S&P 500 closes less than 12% below its 200 simple moving average at any month end.||The following month the strategy will allocate 50% to Equity and 50% to US 3-month Treasury bills ("Cash"). From the 50/50 position the strategy can movie to either Equity or all Cash depending on the next month's indicator.|
|"Cash" Indicator"||S&P 500 closes 12% or more below its 200 simple moving average at any month end.||The following month the strategy will allocate 100% to Cash. From the all cash position, the strategy can move to either the 50/50 or Equity position depending on the next month's indicator.|
SmartPilot strategies use the same exact long portfolio construction as our previous AlphaClone Select strategy. Specifically, we take the ten managers with the highest Clone Score and invest quarterly in the three largest holdings from each manager as disclosed in regulatory filings. The portfolio is equal weighted.
SmartPilot (Hedged) differs from AlphaClone Select in how it hedges market exposure. SmartPilot uses a cash hedge while the previous strategy used a short hedge. See these FAQs for a description of how the cash hedge works. This article will also help explain why we made the change.
Investment account clients will pay a flat annual wrap advisory fee of 1% which includes any trading commissions. Additional custodial fees may apply.
Your assets will be held at Folio Investments. You can review the account’s privacy and security features here.
Once you open and fund your investment account. We'll give you online access to your account(s) 24 hours a day, 7 days a week through your selected custodian's web-based investor portal.
Through Folio Investment’s web-based investor portal, you'll get instant access to online reporting tools, electronic statements, downloadable tax documents and more so you can directly access important information about your accounts.
The minimum investment required to open an account at Folio Investments is $50,000. After that you can transfer funds into your account at any time and in any amount.
We take inquiries seriously, which is why we ask for this info. If you prefer to remain anonymous, use our general email address, but expect a slower response.
Past performance is no guarantee of future results. Any historical returns may not reflect actual future performance. All SmartPilot performance is modified and therefore hypothetical even if derived from actual client accounts. Hypothetical performance presentations do not represent actual performance. Investors should be aware that a loss of investment is possible.
AlphaClone performance results for the SmartPilot (Hedged) and SmartPilot (Long) strategies are based on actual returns invested in a version of the SmartPilot strategy (previously called AlphaClone Select, "Original Strategy"). Prior to August 31, 2019, the Original Strategy was long/market neutral in a given month based on whether the S&P 500 closed above/below its 200-day moving average at month end. When the strategy was market neutral the Original Strategy utilized a short market hedge to reduce market exposure (i.e.,50% long, 50% short the S&P 500). After August 31, 2019, the SmartPilot strategy uses a cash hedge instead of a short hedge to reduce its market exposure. See the SmartPilot FAQs for a full description of how our cash hedge works and this article for why we modified our approach.
The performance results shown for the SmartPilot (Hedged) strategy use the same actual historical monthly composite returns as for the Original Strategy during months when the strategy was long (89 out of 104 months from inception to when the strategy’s hedge was modified (1/1/2011 to 8/31/2019). For months the original strategy was short hedged (15 out of 104 months), returns are adjusted to reflect the use of a cash hedge instead of a short hedge during those months. Actual returns using the short hedge would have resulted in lower performance than using the cash hedge. No other adjustments to gross performance are made. See table below for a performance comparison.
The performance results shown for the SmartPilot (Long) strategy use the same actual historical monthly composite returns as for the Original Strategy during months when the strategy was long (89 out of 104 months). For months the Original Strategy was short hedged (15 out of 104 months), returns are adjusted to remove the effect of the hedge during those months. No other adjustments to gross performance are made.
With the launch of SmartPilot, AlphaClone has reduced its maximum advisory fee for all current and prospective separate account clients to a flat 1% regardless of account size (minimum initial account size of $50,000). Previously, the firm’s maximum advisory fee was 1.5% per year. Therefore, actual performance for the Original Strategy in the table below would have been lower than illustrated because of the higher maximum fee then in effect.
Original Strategy vs SmartPilot - net of 1% per year advisory fee
|As of 8/31/19||Original Strategy||SmartPilot Hedged||SmartPilot Long||S&P 500|
All Time inception is 1/1/2011. Performance annualized for periods greater than one year.
Results for the SmartPilot portfolio as compared to the performance of the Standard & Poor’s 500 Index (the "S&P 500") is for informational purposes only. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. The investment program does not, and is not intended to, mirror this index, and the volatility of the investment program may be materially different than the volatility of the S&P 500. Reference or comparison to an index does not imply that the portfolio will be constructed in the same way as the index or achieve returns, volatility, or other results similar to the index. Indices are unmanaged, include the reinvestment of dividends and do not reflect transaction costs.
Performance results were prepared by AlphaClone Inc. Additional information including how performance results were adjusted is available upon request.
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