Strategies

Brookstone INVESTMENT Strategies

Through Brookstone Capital management (BCM) and other sources, we offer a wide spectrum of investment alternatives in order to provide diversified 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 provide for varied investor risk tolerances.

Brookstone RAISE 360° SELECT Models

The BCM RAISE 360° Select Models are designed to adhere to proper diversification and risk-appropriate portfolio selection across market cycles. The Models are built by utilizing the entirety of Strategic and Tactical investments and the financial intelligence available on BCM’s platform. Raise 360 is designed to help investors by consistently exercising patience and discipline throughout changing investment markets.

Brookstone TACTICAL Advisors

Through BCM, we also partner with innovative, independent, boutique investment firms to offer access to a select yet diverse range of investment strategies. These subadvisors who share our same philosophy toward risk management are able to offer investment options that are tailored to investors’ financial goals and objectives.

Below are a few of these managers.

ALTRIUS ENHANCED INCOME FUND

This is a BCM exclusive fund that is designed to generate dividend income and maximize long term total return. The fund incorporates two distinct strategies: It invests in bonds of any credit rating or maturity to generate dividend income and it employs an option overlay strategy designed to enhance the amount of income generated.

BRAVER CAPITAL MANAGEMENT

Braver is a full-market tactical solution with embedded risk management. It is designed to protect investors from severe losses in down markets while providing quality participation in rising markets. The managers seek to significantly reduce downside risk and drawdowns. Braver provides highly asymmetrical investment returns, and typically low correlation to traditional indices and asset classes.

CANTERBURY PORTFOLIO THERMOSTAT INVESTMENT STRATEGY

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

CMG OPPORTUNISTIC ALL ASSET STRATEGY

CMG offers diversified return opportunities with potentially lower volatility. CMG managers analyze a diverse universe of ETFs, resulting in a comprehensive assessment of risk and reward to help navigate ever-changing market conditions. Tactical asset allocations and active management anticipate changing opportunities in various asset classes to ensure that the portfolio remains in line with investor goals.

DONOGHUE

We use W. E. Donoghue’s tactical dividend strategy. It is a rules-based and transparent methodology that dynamically allocates between stocks and cash based on market conditions. This kind of active management helps portfolios stay aligned with investor goals.

HEDGED PREMIUM SPREADS FUND

This is a BCM exclusive fund that offers a credit spread hedging strategy that is designed to mitigate risk and enhance returns. The fund strategy writes (sells) put or call options on major equity indexes to enhance the risk/return profile of the fund. The fund intends to use its hedging strategy primarily to mitigate losses relating to market declines.

MARKETGRADER 100 ENHANCED INDEX FUND

This is a BCM exclusive Fund where the investment objective is to seek investment results that correspond generally to the directional performance of the U.S equity market using a proprietary methodology that attempts to enhance risk-adjusted returns through hedging strategies.

Brookstone STRATEGIC Advisors

BCM has also 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.

BlackRock iShares Core ETFs

These ETFs offer a simple way to build a diversified core portfolio based on conservative risk considerations using one low cost fund. By harnessing the experience of BlackRock and the efficiency of iShares ETFs we are able to get a broad mix of bonds and global stocks. They are used to establish a long term, balanced portfolio and combine with other BCM strategies for particular needs like income.

BlackRock iShares Strategic ETFs

This ETF strategy allows us to bucket asset classes by investment objective. The iShares Strategic ETF portfolios can help bring different components of your portfolio together to help achieve your investment goals. These portfolios offers us the flexibility to build foundational portfolios or complement other strategies.

Guggenheim Bulletshares Target Maturity Date ETFs

This is a suite of fixed income ETFs designed to combine the precision of individual bonds with the advantages of ETFs. By investing through an ETF, we have cost effective and convenient access to comprehensive portfolios of bonds. 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 needs.

Morningstar Stock Basket Portfolios

We use Morningstar to combine 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. Multiple portfolio strategies are available.

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.

IndexLinked 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.

OpenEnd or Mutual Fund Investment Company:

This is a company that uses its capital to invest in other companies. Open end or mutual funds sell their own new shares to investors and buy back their old shares. These 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 & Poors. 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 that occurs because the probability of that option being profitable is reduced.

Additional Disclosure:  The content of this website is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy. Investment and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives. For a complete description of investment risks, fees & services, please review the Brookstone Capital Management firm brochure (ADV Part 2A). This document is available upon request.