WMN Investment Protocol

Wealth Management Network, LLC (WMN) is a registered investment adviser that manages client's liquid investment portfolio assets. WMN's investment protocol is based on Modern Portfolio Theory (MPT). MPT is a disciplined approach to investing that involves allocating portfolio funds among different asset classes, with low correlation to each other, to reduce volatility and enhance risk-adjusted returns over time.

Six distinct asset classes are utilized in diversifying all client investment portfolios:

  • Cash (and equivalents)
  • Fixed Income (municipal, corporate and government bonds)
  • Alternative Strategies (funds of funds, commodities indexes, and inverse market tactics)
  • Real Estate (via real estate investment trusts)
  • Domestic Equities (stocks and indexes of U.S. based companies)
  • International Equities (stocks and indexes of foreign based companies).

Portfolio holdings are predominately in the form of no-load, low-expense institutional mutual funds and exchange-traded funds (ETF's). On rare occasions, a specific investment opportunity in an individual security may be so compelling that we purchase it for the accounts of our most risk-tolerant clients. Additionally, WMN may engage third-party, style specific investment managers on behalf of the client for the purpose of optimizing performance consistent with their investment objectives.

Modern Portfolio Theory and Long-Term/Short Term Actions

Modern Portfolio Theory

WMN deploys investment strategies that utilize asset allocation principles set forth in modern portfolio theory (MPT). MPT refers to the discipline of allocating among asset classes that are minimally correlated, resulting in the potential for reduced volatility and increased rates of return over time. In order to provide prudent diversification, we invest portfolio assets across:

  • multiple asset classes and investment styles
  • market capitalizations
  • sectors and regions

Long-Term Thinking / Short-Term Actions

WMN's investment process divides roughly as follows:

  • Long term: We are strategic asset allocators.
  • Short term: We are tactical sector and regional rotators.

The combination of long and short time frames can result in preservation of capital during unfavorable investment climates and more consistent returns in favorable markets.

WMN Methodology

Wealth Management Network, LLC (WMN) has developed a proprietary investment methodology that blends strategic (long term) and tactical (short term) techniques. Client assets are allocated according to specific guidelines into the six asset classes described in the “WMN Investment Protocol” section above, based on each clients objectives, risk tolerance, and time frame. Portfolios are subsequently managed and systematically rebalanced consistent with the client's ongoing strategic objectives.

A written Investment Policy Statement (IPS), establishing investment objectives, risk tolerances and performance expectations governs the management of each client account. This IPS is developed together by WMN investment professionals and the client, and may be periodically updated to reflect changes in the client's circumstances over time.

Client accounts are custodied at Schwab Institutional, a division of Charles Schwab & Co, and are insured up to $100 million. All WMN clients receive the following reports:

  • Monthly statement of account holdings and transactions from Schwab Institutional.
  • Quarterly performance reports from WMN that detail account holdings, asset allocation, and performance data.
  • Year-end gain/loss and cost-basis reports for use in tax return preparation.
  • Retirement plan contribution and distribution reports.

WMN's Philosophy

  • Diversification across both traditional and alternative asset classes is essential for successful global investing.
  • Financial markets in the 21st century demand both an active and a passive approach to asset allocation and security selection.
  • Successful long term client relationships are built upon a clear understanding of expectations, ongoing communication, and education.
  • Our compensation is based only upon assets under management. Independence and transparency ensure that WMN's interests are aligned with the interests of our clients.
  • We respect the power of time to reduce investment portfolio volatility and drive capital growth.
  • Our approach is collaborative and inclusive. We coordinate with the client's other advisers, including accountants, attorneys, and estate planners, as needed.

Investment Management Objectives

Four key investment management objectives have guided WMN principals in portfolio decision making over the course of our careers, and continue to serve us well today:

  • capital accumulation
  • volatility management
  • inflation hedging
  • flexibility / liquidity

Consistent & Stable Management

In portfolio management, WMN aims for stable, incremental returns that focus on capital retention and staying ahead of inflation. Our ability to be analytic and decisive while adhering to a strong investment discipline results in a steady ride for clients, with few surprises.

In client relationships, we practice long-term partnership based upon meaningful dialogue. We like to listen and are available and accessible: a phone call, email, or office visit away.

WMN's two founders, Mark Moehlman and Laine Ainsworth, are longtime wealth management practitioners, both dedicated to the professional advancement of their industry. The firm's clientele benefits from two distinct personalities, diverse skills, and more than half a century of aggregate investment experience.