Time-tested and trusted
FOUNDATION
INVESTMENT STRATEGIES
Milestones follows a different approach to investing than the typical investment manager.
One of Milestones' primary objectives is to deliver enhanced investment outcomes by offering a combination of core proprietary investment capabilities complemented by well-suited outsourced capabilities for those clients seeking diversification beyond Milestones' offering. Our proprietary investment capabilities are highly disciplined. For our outsourced investment capabilities, we look for asset managers that have a similar approach to our internal management: long-term and high-quality. Because we manage strategies internally, we feel it gives us an advantage when conducting due diligence for complementary offerings.
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We take a long-term approach and we favor transparent asset classes and investment instruments which can be understood. We do not invest in fads, IPOs or troubled companies. As a result, some of our portfolios may under-perform slightly in bull markets but outperform in bear markets. Our common-sense, dynamic approach to investing is designed to be core to the foundation of the client's composite portfolio over full market cycles.
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Our suite of growth portfolios — built on our proprietary market research and investment methodologies — are designed to seek above average compound annual returns over complete market cycles and to attempt to do so with below-market levels of risk. We have two growth strategies available exclusively to our clients, which employ complementary methodologies for achieving the goal of long-term growth of wealth.
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Milestones' proprietary fixed income management strategies encompass investment grade municipal, high yield municipals and government/corporate bond portfolios. Our objective is to build research-based and well-diversified fixed-income portfolios that are well-positioned to generate total returns in excess of the market benchmarks over a full market cycle. We do not predict the direction of short-term interest rates but rather seek to exploit relative value opportunities as they arise. Research is the key to identifying value and opportunity in the fixed-income markets and is at the center of each of our fixed-income investment strategies. Whether managing dedicated bond portfolios or the fixed-income portion of balanced portfolios, Milestones recognizes that each client has unique investment objectives and risk tolerance levels. Accordingly, all of our bond portfolios utilized on a level that is customized to meet a client's particular income tax, cash flow, risk tolerance and time horizon requirements.
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There can be no assurance that the investment objectives of any of the following strategies will be achieved.
It is not possible to invest directly in an index.
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Growth-biased strategies
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The investment objective of the MPIA Enhanced U.S. Equity Strategy is to seek to maximize long-term total return.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a diversified portfolio of U.S. equity ETFs. Any potential exposure to non-U.S. equity securities is incidental.
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Guided by the MPIA proprietary, data-driven, macro-analytical methodology, the Strategy is designed to pursue targeted exposures to each individual equity sector. With the S&P 500® index’s sector weightings as its baseline, the Strategy may “enhance” those baseline weightings by moderately overweighting or underweighting any sector, with the objective of increasing longer-term total returns and/or mitigating potentially elevated market risks.
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The MPIA proprietary methodology analysis is conducted daily, and allocation guidance for the Enhanced U.S. Equity Strategy is reconstituted once monthly. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised equity sector targets.
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The primary investment objective of the MPIA Equity Sector Rotation Strategy is to aggressively seek to maximize long-term total return.​
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The Strategy builds upon the MPIA Enhanced U.S. Equity Strategy. Under normal market conditions, the Strategy invests at least 95% of its assets in a quasi-diversified portfolio of U.S. equity ETFs.
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The Strategy differentiates itself from the MPIA Enhanced U.S. Equity Strategy in the following ways:
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​It has a secondary investment objective, which is to moderately seek to mitigate negative portfolio impacts from periods of financial markets stress or shifts.
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The Strategy is index-agnostic, meaning its allocations/weightings are not based on the that of the S&P 500® index (nor any other standard index). Guided by our proprietary, data-driven, macro-analytical methodology, the Strategy may significantly overweight or underweight any equity sector, and the Strategy may diversify up to 30% of its equity allocation to non-U.S. equity ETFs.
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Further guided by our proprietary, data-driven, macro-analytical methodology, the Strategy may also periodically reduce its overall equity allocation to as little as 80%. During those periods, the remaining 20% of the portfolio may be re-directed to broaden the Strategy’s diversification via targeted exposure to cash, gold, commodities, U.S. Dollar, and/or U.S. Treasury ETFs.
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The MPIA proprietary methodology analysis is conducted daily, and allocation guidance for the Equity Sector Rotation Strategy is reconstituted twice monthly. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised equity sector and asset allocation targets.
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The primary investment objective of the MPIA Adaptive Growth Unconstrained Strategy is to aggressively seek to maximize long-term total return.
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The Strategy builds upon the MPIA Equity Sector Rotation Strategy. Under normal market conditions, the Strategy invests at least 95% of its assets in a quasi-diversified portfolio of U.S. equity ETFs. Moreover, The Strategy is index-agnostic, meaning its allocations/weightings are not based on the that of the S&P 500® index, nor any other standard index. Guided by our proprietary, data-driven, macro-analytical methodology, the Strategy may significantly overweight or underweight any equity sector, and the Strategy may diversify up to 30% of its equity allocation to non-U.S. equity ETFs.
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The Strategy differentiates itself from the MPIA Equity Sector Rotation Strategy in the following ways:
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​The Strategy has an investment co-objective that is near-equal-to its primary investment objective. This investment co-objective is to aggressively seek to mitigate negative portfolio impacts from periods of financial markets stress or shifts.
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The Strategy is managed by MPIA in an “unconstrained” manner, meaning that its investment universe is not limited to the securities of any particular index and it has discretion to invest in a wide variety of major asset classes.
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Further guided by our proprietary, data-driven, macro-analytical methodology, the Strategy may periodically reduce its overall equity allocation to 40%. During those periods, the remaining 60% of the portfolio may be re-directed to broaden the Strategy’s breadth of diversification via targeted exposure to cash, gold, commodities, U.S. Dollar, and/or U.S. Treasury ETFs.
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The Strategy may rebalance or reconstitute to revised sector targets immediately upon a potentially significant shift in financial markets data or conditions, thus not delaying until its normal twice monthly schedule.
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​The MPIA proprietary methodology analysis is conducted daily, with allocation guidance for the Adaptive Growth Unconstrained Strategy reconstituted twice monthly. Additional, mid-period, event-driven reconstitutions may occur if there is a major shift in financial markets data or conditions. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised equity sector and asset allocation targets.
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The primary investment objective of the MPIA Adaptive Bond Strategy is to utilize bonds to aggressively seek to maximize long-term total return.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a diversified portfolio of both taxable fixed-income securities ETFs and hybrid income securities ETFs.
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The Strategy is index-agnostic and managed in an “unconstrained” manner, meaning its allocations/weightings are not based on the that of the Bloomberg US Aggregate Bond index, nor any other standard index.
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Guided by our proprietary, data-driven, macro-analytical methodology, the Strategy has discretion to invest in fixed-income securities of any type or credit quality, including up to 60% of its assets in high-yield (or “junk”) bond ETFs, up to 60% of its assets in U.S. Dollar ETFs, and up to 60% of its assets in ETFs that principally invest in convertible securities, preferred securities and/or bank-loan securities.
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Further guided by our proprietary, data-driven, macro-analytical methodology, the Strategy’s average portfolio duration will vary between 0 to 10 years. During unique market conditions, the Strategy’s average portfolio duration could be extended to as high as 15 or 20 years. Duration is a measurement of the expected price volatility of a fixed-income security as a result of changes in market rates of interest.
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The MPIA proprietary methodology analysis is conducted daily, and allocation guidance for the Adaptive Bond Strategy is reconstituted twice monthly. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised bond category and asset allocation targets.
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The primary investment objective of the MPIA Growth Strategy is to aggressively seek to maximize long-term total return.
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The Strategy seeks to achieve its goals via consistent exposure to both equities and bonds, by investing 80% of its assets in the MPIA Equity Sector Rotation Strategy and the remaining 20% of its assets in the MPIA Adaptive Bond Strategy.
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Consistent with the nature of its sub-strategies, the Strategy is index-agnostic, meaning its allocations/weightings are not based on the that of any standard index. Furthermore, in the aggregate of its sub-strategies:
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​Under normal market conditions, the Strategy invests approximately 80% of its assets in a quasi-diversified portfolio of U.S. equity ETFs, and roughly 20% of its assets in a diversified portfolio of both taxable fixed-income securities ETFs and hybrid income securities ETFs.
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Under the full spectrum of potential markets conditions, a fluctuating 64% to 80% will be allocated to U.S. and non-U.S. equity ETFs, a steady 20% will be allocated to fixed-income and hybrid-income securities ETFs, and a fluctuating 1% to 16% will be allocated to a dynamic combination of cash, gold, commodities, additional U.S. Dollar, and/or additional U.S. Treasury ETFs.
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​The MPIA proprietary methodology analysis is conducted daily, and allocation guidance for the Strategy’s sub-strategies are reconstituted twice monthly. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised aggregation of targets.
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The investment objective of the MPIA U.S. Select 600 Strategy is to seek to maximize long-term total return.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a diversified portfolio of ETFs consisting of U.S.-listed equities issued by large-capitalization companies. Any potential exposure to non-U.S.-listed equities is incidental.
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The Strategy is actively managed with guidance from the MPIA proprietary, data-driven, macro-analytical methodology to construct a portfolio with exposure to the following major U.S. equity indexes: the S&P 500® index; the Dow Jones Industrial Average index; and the Nasdaq Composite index. Using ETFs, the Strategy’s allocations are tactically managed to targets of between 30% and 40% exposure to each index.
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The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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The investment objective of the MPIA Growth at a Reason Price (G.A.R.P.) Equity Strategy is to seek to maximize long-term total return.​
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The Strategy invests at least 95% of its assets in an individual-stock portfolio of U.S.-listed equities issued by large- and mid-capitalization growth stocks exhibiting favorable value and quality characteristics.
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The Strategy has discretion to invest in individual stock securities according to a proprietary approach to filtering US. equities according to the following factors:
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​Companies who have demonstrated above-average growth relative to the broad domestic equity market and are projected to sustain this trend.
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Companies that appear to be at a reasonable price, balancing growth and value quality characteristics in an effort to avoid companies with unsupported valuations.
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Companies that have moderate-to-substantial presence on at least one significant U.S. equity index.
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​The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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The investment objective of the MPIA Dividend-Growth Equity Strategy is to seek to maximize long-term total return.
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The Strategy invests at least 95% of its assets in an individual-stock portfolio of U.S.-listed equities issued by large- and mid-capitalization stocks with a history of consistently growing dividends.
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The Strategy has discretion to invest in individual stock securities according to a proprietary approach to filtering US. equities according to the following factors:
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​Companies that exhibit a consistent pattern of dividend increases greater than that of the markets as a whole and whose business execution may allow them to continue to raise their dividends.
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Companies who have healthy cash to debt ratios and recent earnings per share trends.
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Companies that appear to be at a reasonable price, balancing value and dividend-growth quality characteristics in an effort to avoid companies with unsupported valuations.
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​The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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The investment objective of the MPIA Dividend Income Strategy is to seek total return, with a secondary emphasis on current income.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a diversified portfolio of ETFs consisting of U.S.-listed equities issued by large-capitalization, dividend-paying companies. Any potential exposure to non-U.S.-listed equities is incidental.
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The Strategy is actively managed with guidance from the MPIA proprietary, data-driven, macro-analytical methodology to construct a portfolio with majority exposure to a combination of the following U.S. equity indexes: the Morningstar® Dividend Leaders Indexâ„ ; the Dow Jones U.S. Dividend 100™ index; and the Nasdaq US Rising Dividend Achievers™ index. Using ETFs, the Strategy’s allocations are tactically managed to targets of between 30% and 40% exposure to each index.
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The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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Income-biased strategies
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The investment objective of the MPIA Diversified Income Strategy is to seek current income, with a secondary emphasis on total return.
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Under normal market conditions, the Strategy invests between 25% to 35% its assets in a diversified portfolio of dividend-oriented U.S. equity ETFs, and between 65% to 75% of its assets in a diversified mix of taxable fixed-income securities ETFs and hybrid income securities ETFs.
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The Strategy has discretion to invest in fixed-income securities of any type or credit quality, including high-yield (or “junk”) bond ETFs, U.S. Dollar ETFs, as well as ETFs that principally invest in convertible securities, preferred securities and/or bank-loan securities. The combination thereof could occupy up to 50% of the Strategy’s total assets.
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The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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The investment objective of the MPIA Long-Term Income Strategy is to seek current income, with a secondary emphasis on long-term preservation of capital and daily liquidity.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a diversified portfolio of both taxable fixed-income securities ETFs and hybrid income securities ETFs.
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Guided by the MPIA proprietary, data-driven, macro-analytical methodology, the Strategy is designed to pursue targeted exposures to a wide range of bond categories. With the Bloomberg US Aggregate Bond index’s category weightings as its baseline, the Strategy may “enhance” those baseline weightings by moderately-to-significantly overweighting or underweighting any bond category, with the objective of consistently generating current income while still mitigating longer-term downside risk.
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The Strategy has discretion to invest in fixed-income securities of any type or credit quality, including up to 70% of its assets in high-yield (or “junk”) bond ETFs, up to 15% of its assets in U.S. Dollar ETFs, and up to 10% of its assets in ETFs that principally invest in convertible securities, preferred securities and/or bank-loan securities.
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Further guided by our proprietary, data-driven, macro-analytical methodology, the Strategy’s average portfolio duration could fluctuate between 1 to 10 years. Duration is a measurement of the expected price volatility of a fixed-income security as a result of changes in market rates of interest.
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The MPIA proprietary methodology analysis is conducted daily, and allocation guidance for the Long-Term Income Strategy is reconstituted bi-monthly. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised bond category and asset allocation targets.
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The investment objective of the MPIA Long-Term Investment-Grade Income Strategy is to seek current income, with a secondary emphasis on long-term preservation of capital and daily liquidity.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a portfolio of taxable, investment-grade, fixed-income securities ETFs.
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Guided by the MPIA proprietary, data-driven, macro-analytical methodology, the Strategy is designed to pursue targeted duration exposure, with average portfolio duration ranging between 1 to 10 years. Duration is a measurement of the expected price volatility of a fixed-income security as a result of changes in market rates of interest. The Strategy may additionally invest up to 15% of its assets in U.S. Dollar ETFs.
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The MPIA proprietary methodology analysis is conducted daily, and allocation guidance for the Long-Term Income Strategy is reconstituted bi-monthly. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised bond category and asset allocation targets.
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The investment objective of the MPIA Short-Duration Income Strategy is to seek current income, consistent with preservation of capital and daily liquidity.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a diversified portfolio of taxable fixed-income securities ETFs.
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Leaning on the MPIA proprietary, data-driven, macro-analytical methodology, the Strategy has discretion to invest in fixed-income securities of any type or credit quality, including up to 60% of its assets in high-yield (or “junk”) bond ETFs and up to 10% of its assets in U.S. Dollar ETFs. The Strategy’s average portfolio duration could fluctuate between 0 to 3 years. Duration is a measurement of the expected price volatility of a fixed-income security as a result of changes in market rates of interest.
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The MPIA proprietary methodology analysis is conducted daily, and allocation guidance for the Short-Duration Income Strategy is reconstituted bi-monthly. Accordingly, the Strategy is periodically rebalanced to the methodology’s revised bond category and asset allocation targets.
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The investment objective of the MPIA Recession-Oriented Bonds Strategy is to seek current income with a focus on long-term preservation of capital.
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The Strategy is index-agnostic, meaning its allocations/weightings are not based on the that of the Bloomberg US Aggregate Bond index, nor any other standard index.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a portfolio of ETFs that principally invest in investment-grade debt securities issued or granted by the U.S. government, its agencies or government-sponsored entities, including publicly-issued U.S. Treasury securities and mortgage-related securities.
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Leaning on the MPIA proprietary, data-driven, macro-analytical methodology, the Strategy is designed to pursue targeted duration exposure, with average portfolio duration ranging between 5 to 15 years. Duration is a measurement of the expected price volatility of a fixed-income security as a result of changes in market rates of interest.
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The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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The investment objective of the MPIA Inflation-Oriented Bonds Strategy is to seek current income while maintaining low portfolio duration as a primary objective and capital appreciation as a secondary objective.
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The Strategy is index-agnostic, meaning its allocations/weightings are not based on the that of the Bloomberg US Aggregate Bond index, nor any other standard index.
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Leaning on the MPIA proprietary, data-driven, macro-analytical methodology, the Strategy has discretion to invest in fixed-income securities of any type or credit quality, including up to 60% of its assets in high-yield (or “junk”) bond ETFs, up to 60% of its assets in U.S. Dollar ETFs, and up to 15% of its assets in ETFs that principally invest in preferred securities and/or bank-loan securities. The Strategy’s average portfolio duration will vary between 0 to 3 years. Duration is a measurement of the expected price volatility of a fixed-income security as a result of changes in market rates of interest.
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The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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The investment objective of the MPIA Tax-Sensitive Fixed-Income Strategy is to seek current income that is exempt from regular federal income taxes, and its secondary objective is long-term capital appreciation.
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The Strategy is index-agnostic, meaning its allocations/weightings are not based on the that of the Bloomberg US Aggregate Bond index, nor any other standard index.
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Under normal market conditions, the Strategy invests at least 95% of its assets in a portfolio of ETFs that principally invest in municipal debt securities that pay interest that is exempt from regular federal income taxes.
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Leaning on the MPIA proprietary, data-driven, macro-analytical methodology, the Strategy has discretion to invest up to 35% of its assets in high-yield (below BBB rating) municipal bond ETFs. The Strategy is designed to pursue targeted duration exposure, with average portfolio duration ranging between 3 to 10 years. Duration is a measurement of the expected price volatility of a fixed-income security as a result of changes in market rates of interest.
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The Strategy is reconstituted and rebalanced anywhere from quarterly to annually.
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Blended strategies – ranging from 'conservative' to 'aggressive'
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Consistent with our philosophy and broader purpose of holistic wealth management, MPIA actively manages a wide array of blended portfolios, each composed of two or more of the core strategies defined above.
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MPIA currently manages more than two dozen blended strategies, ranging from matching-up complementary bond-centric strategies to blending an equity-centric strategy with one or more bond-centric strategies. At MPIA, we have created an investment management approach and architecture where systematic methodology meets customization and vice versa, rather than you having to choose between the two. Our blended strategies range from 80/20 to 20/80, and everywhere (and every style) in-between. MPIA’s diverse capabilities enable us to create a customized blend for any individual client without losing the advantages of ongoing analysis, overarching methodology and proactive investment management.
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