Richard Bernstein Advisors launches “SMRT” ETF model portfolios

May 22nd, 2012 | By | Category: Equities

Richard Bernstein Advisors (RBA), a US-based independent investment adviser, has announced the launch of a series of ETF model strategies known as “SMRT” (Sector Model RoTation).

Richard Bernstein Advisors launches "SMRT" ETF model portfolios

Richard Bernstein, RBA founder and CEO, is a former chief investment strategist at Merrill Lynch.

The portfolios will combine RBA’s top-down approach and proprietary earnings and valuation analyses with First Trust Advisors’AlphaDEX methodology. RBA was founded by Richard Bernstein, a former chief investment strategist at Merrill Lynch.

The firm 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.

RBA believes that beta is the primary driver of stock returns versus individual stock selection and thus ETFs are ideal vehicles for the SMRT portfolios. The model strategies will initially be offered on select US adviser platforms.

Talking at the launch, Richard Bernstein said: “We are pleased to once again partner with First Trust and to deliver sound equity and asset allocation portfolios for financial advisers and their clients. Our investment committee has thoroughly analysed and assessed the AlphaDEX ETF’s and feel their fundamental approach will be a significant benefit within these portfolios.”

Andy Subramanian, Senior Vice President of First Trust Advisors, added: “RBA’s macro approach and track record makes them an ideal partner for First Trust and the AlphaDEX methodology. We believe advisers are looking for a top-down approach that utilises merit-based selection, and combining the AlphaDEX lineup within the SMRT portfolios provides that solution.”

RBA follows Accuvest Global Advisors, a US-based equities manager, in selecting the AlphaDEX range for use in a suite of model ETF portfolios.

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