Risk-Managed Models

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Severin Investments offers seven strategic models that our portfolio managers blend across asset classes and sectors. We then implement a tactical overlay and sector rotation to adjust the models to the economic and market climate. These risk-managed models create a diversified investment portfolio for your clients by balancing equity and fixed income, market cap, region, and sectors.

Stock, Bond, and ETF Models

Four of our risk-managed models consist of stocks, bonds, and ETFs. These include (with strategic weightings of equity / fixed income / cash as indicated):

• Severin Moderate Growth & Income (55/43/2)
• Severin Conservative Growth (70/28/2)
• Severin Moderate Growth (85/13/2)
• Severin Long Term Growth (95/3/2)

These models contain 80-100 securities, most of which are individual stocks. ETFs are typically used for fixed income allocations, and may be used to supplement certain asset classes such as emerging markets. Individual stock selection helps us drill down into sub-sectors and choose companies with high quality fundamentals and good upside potential.

ETF-Only Models

Three models invest only in ETFs and low cost mutual funds. These include (with strategic weightings of equity / fixed income / cash as indicated):

• Severin ETF Conservative Growth (70/28/2)
• Severin ETF Moderate Growth (85/13/2)
• Severin ETF Long Term Growth (95/3/2)

Our ETF-only models provide a similar asset class and sector blend to their stock-focused counterparts. However, they are designed to accommodate smaller accounts. They typically contain 15-25 ETFs.

Please see below for our description of the program and links to our most recent Morningstar Reports.

Severin Current Equity Income is a domestic equity portfolio that invests in high dividend yielding stocks. The model consists primarily of large cap domestic equity, and generally carries a dividend yield between 3.5-4%. During volatile markets, the managers strive to keep the yield around 4% or higher. In addition, the managers employ a sector rotation strategy as economic conditions change.

Severin Current Equity Income is an all-stock portfolio that contains no mutual funds or ETFs. It generally holds 80-100 equity positions and is best suited for accounts greater than $100,000.

Please see below for a more detailed description of the model and the most recent Morningstar Report.

Severin Relative Strength model is designed to provide highly risk tolerant investors with the potential for alpha in an otherwise diversified investment portfolio. The model fully rebalances each month to the most attractive stocks in the S&P 500 based on their relative strength indicator. 

With 50 positions and 100% monthly turnover, this model is best suited for accounts greater than $50,000 that are either tax deferred or tax exempt.