True Diversification: contrary to what most investment professionals do and say, most portfolios are not diversified. Within our KAPPS model, you will achieve true diversification by potentially investing across more than 20 distinct asset classes. Doing so provides our clients with risk-adjusted returns that are more successful than solely investing in the S&P 500.
Low Risk/Low Cost
Kruse QVP (Quantitative Value Portfolio): You will invest with confidence when you have the best tools available to you. Our proprietary investment formulation relies on extensive historical data to identify stock characteristics that consistently lead to long-term outperformance, regardless of market condition. Back-tested research has shown this model to outperform in 80 percent of all 90-day periods, 90 percent of all 12-month periods and 100 percent of any three-year period.
KAM uses ‘principle-protected’ structured products in our asset allocations to provide superior risk-adjusted portfolio returns. The term ‘structured product’ means that CDs (certificates of deposits) are created and engineered to provide a particular return profile at maturity against a given index or basket of investments (for example, a commodity index). The ‘principle-protection’ feature means that if the product is held to maturity – usually 3-5 years – the client is guaranteed to receive, at minimum, their initial investment (often with some nominal annual minimum interest that is currently greater than money market rates). Because the product is a CD, the client receives any gains in the form of interest (as opposed to dividends or capital gains), which is taxed at the client’s ordinary income rate. The issued CD will have the credit risk of the issuing bank, but is also FDIC insured.