RBA said the portfolio combines its top-down approach and proprietary earnings and valuation analyses with First Trust Advisors’AlphaDEX methodology and are designed to manage beta through a market cycle.
RBA uses an array of proprietary macro indicators to assess the market cycle and accordingly focuses on allocating beta effectively among the primary factors of stock returns such as size, style, geography and economic sector.
Moreover, the portfolio considers beta as the primary driver of stock returns vs. individual stock selection.
RBA added that initially, the model’s strategies will be offered on select UMA platforms such as Richard Bernstein Advisors SMRT Tactical Equity Portfolio-featuring AlphaDEX, Richard Bernstein Advisors SMRT Strategic Equity Portfolio-featuring AlphaDEX and Richard Bernstein Advisors SMRT All-Asset Moderate Portfolio-featuring AlphaDEX.
