RiverFront DWA Fusion Large Cap Portfolio / RDFLC

Investment Objective

Seeks to outperform the S&P 500 index by investing in companies that offer, in our view, attractive valuations, healthy balance sheets defined by low debt-to-equity ratios, and positive price momentum.

Implementation

US Equities

Benchmark

100% S&P 500

Time Horizon

10+ Years

EQUITY SOLUTION: VALUE, QUALITY & MOMENTUM

Portfolio Objective

The RiverFront DWA Fusion Large Cap Portfolio from RiverFront and Nasdaq Dorsey Wright (DWA) will seek to outperform the S&P 500 index by investing in companies that offer, in our view, attractive valuations, healthy balance sheets defined by low debt-to-equity ratios, and positive price momentum.

Portfolio Overview

The RiverFront DWA Fusion Large Cap Portfolio is a domestic equity model using RiverFront’s proprietary Value and Quality Factor scores and Nasdaq Dorsey Wright’s proprietary Momentum Factor scores. The portfolio will invest in approximately 50 US stocks selected from top 1,000 largest US companies, leveraging the experienced thinking from RiverFront and Nasdaq DWA.

The Fusion Large Cap portfolio can help clients diversify their portfolios by providing a way to add more large-cap core and large-cap value to their portfolios, with an active management approach.

INVESTOR OUTCOME

Accumulate ~ More Aggressive

Goal: Build
Outcome: Growth

The portfolio has the mandate to invest in large-cap companies that are domiciled in the US. The portfolio will generally be fully invested and can be used on a stand-alone basis or as a complement to more diversified portfolios. The portfolio is targeted toward investors with a 10-year plus investment horizon who are seeking growth.

Portfolio Construction: Value, Quality & Momentum

The portfolio is constructed by using a combination of quantitative models and systematic processes.

STEP 1: RiverFront utilizes a scoring system to identify those stocks with the most attractive value and quality characteristics, in our view. RiverFront considers multiple factors within each category such as free cash flow to price when determining value and debt to equity when determining quality. RiverFront then assigns each qualifying security a score based on these characteristics.

STEP 2: DWA uses price momentum-based measurements from their point and figure charting methodology. DWA believes that point and figure analysis is more effective at identifying meaningful price movements in stocks than more traditional charting methods. DWA’s ranking system rewards for sustained outperformance versus the broad market with reasonable volatility.

These two disciplines are blended together for an actively managed solution that we believe can add value over a passive index and provides a compliment to RiverFront’s broader global Advantage balanced solutions.

About Nasdaq Dorsey Wright (DWA)

Nasdaq Dorsey Wright is a registered investment advisory firm with offices in Richmond, Virginia and Pasadena, California. Over the last thirty years, the DWA research platform, SMA/UMA strategies, indexes, and team of analysts has created informed conversations and robust investment solutions for advisors, investment managers and their clients. Now a part of Nasdaq, DWA continues to help market participants build and protect client wealth. Nasdaq Dorsey Wright’s expertise is technical analysis, with a focus on momentum investing.

To learn more about our products and services please contact your financial advisor.