Article as seen in the North Texas Premier Financial Advisors publication, a special advertising supplement to the Wall Street Journal
If the notion of having access to institutional-quality asset management sounds appealing, read on. Fund Architects was founded to provide investors dynamic investment portfolios designed to capitalize on constantly shifting global markets.
“We could see that investors were tired of paying for simple buy-and-hold strategies,” says Burt Snover, the firm’s President and Chief Investment Officer. “More than that, they wanted their advisor to have a plan in place to protect assets during a market correction. “
A discretionary, fee-based money management firm, Fund Architects relies on its Investment Committee to search the globe for the best investment opportunities. Unshackled from benchmarks and target weightings, the firm uses its discretion to optimize portfolios based on current market conditions. Clients gain confidence in knowing they have a systematic, repeatable process that removes guesswork and emotion from the decision-making process.
In practice, the firm employs a proprietary system for tracking more than 20 global equity and fixed income sectors and ranking each one based on price momentum, risk, and correlation. The Investment Committee then analyzes the data to allocate to the top sectors on a monthly basis. This designed process allows the firm to invest in whatever it thinks is appropriate, unconstrained to any benchmark.
“Essentially, our process helps us find what’s working in the current environment and, just as importantly, helps us avoid what’s not,” says Daniel Snover, Burt’s son and Portfolio Manager of the Fund Architect Global ETF Series of strategies. “Because we have the flexibility to go anywhere, we’re never really concerned about the direction of the market.”
For example, if the market is doing well, Fund Architects’ process might seek to add value by overweighting sectors with strong price momentum. If, on the other hand, the market is falling, the process can allocate to U.S. Treasuries or other assets negatively correlated with equities. And when no market or sector is doing well, the strategies might move to 100% cash.
To most efficiently execute the Fund Architects strategies, the Snovers made a calculated decision along the way to exclusively utilize exchange traded funds. According to Daniel, ETFs can deliver a measurably better client experience by helping to minimize fees and maximizing returns.
“We simply don’t see the logic in charging management fees on top of underlying mutual fund expenses,” says Daniel. “By trading ETFs, we not only reduce costs, we gain control over our performance by not outsourcing investment decisions to external fund managers.”
Launched in 2007, Texas-based Fund Architects has clients across the country but primarily caters to Dallas and its surrounding counties. Burt describes the local client base as “the humble wealthy.”
“Rockwall County is one of the wealthiest counties in the state,” says Burt, “but the people are not ostentatious. They watch their money carefully and they want to know their investment advisor is watching it as well. That’s why they look to a no-nonsense manager like Fund Architects to help them protect and grow their wealth.”