Full Back Office
Outsource all aspects of the investment administration process. Account setup, transfer, admin, trading, billing & reporting.
Customized cash positions and non-model securities; Convenient UMA structure for multiple strategies.
High touch personal support. Meticulous attention to detail.
Customizable advisor compensation. Advisory fees paid monthly.
White-glove service: Dollar cost averaging, transfer in kind, RMD tracking and alerts & more.
Quick & secure client access to customized account information and reporting; Full advisor access to book of business, reporting engine & document storage.
Simple automated on-boarding. Convenient recordkeeping with Investment Policy Statements.
Quarterly performance reporting with custom report options. Reporting at household, account, and sleeve-level UMA.
Choice of custodians and multiple pricing options
Investment Philosophy Rooted in 95 Years of Academic Research
Markets historically compensate investors for the risks they take – but a long-term time horizon is needed.
We don’t try to time the markets or find “mispriced” stocks. Instead, we trust the markets to be efficient. We research to understand and invest in risk factors that historically outperform over the long term.
It’s easy to get spooked by market downshifts and easy to think that actively playing the market is your best path to financial security, but short-sighted emotional reactions typically cost you in the long run.
Over the 20 years ending in 2018, the average equity fund investor underperformed the S&P 500 by 1.74% annually. (DALBAR 2018 Quantitative Analysis of Investor Behavior).
We’re committed to seeking the rewards the equity markets have historically delivered over the long-term, but through the calm, disciplined approach of strategic investing.
3D Managed Account Program
Our goal is to provide comprehensive asset management for all time horizons and financial situations. We’ve looked across the spectrum of equity and fixed-income and developed a platform of options that work for every investor type.
We’ve thoughtfully considered where clients want to be invested and we are always evolving. We’ve also built in tax-sensitive fixed income as part of a model strategy. And wherever possible, we employ ETFs so you can offer your clients the advantage of both lower expense ratios and broader market coverage.
ETFs: Low-Cost, Tax-Efficient
The structure of ETFs gives easy insight into their target market exposure, and a real-time gauge on their value. ETFs are also typically more flexible, cost-effective, and tax-efficient than other investment vehicles with:
and potentially higher
No Cash Held to Pay
so more of your money
so the investor decides when to
realize capital gains
Daily Fund Holding
for transparency in
what you own.
Each model portfolio and partner product we offer is rooted in academic research, a rigorous due diligence process, and factors in four key elements:
Strategic, Dynamic, Tactical—all three approaches can play a role, it’s about understanding how each strategy can fit within a portfolio.
- Strategic: A fixed asset allocation to equities and bonds
- Dynamic: The asset allocation is dynamically adjusted according to the macroeconomic environment
- Tactical: The asset allocation can be adjusted to the macroeconomic environment and can completely de-risk to 100% cash
Return is a function of time. It is the ability to remain invested long enough so that the advantages of risk exposure are captured.
Balancing investor goals with time horizon identifies the risk tolerance that will guide the strategy and keep the portfolio on track.
Downside Risk Management
Understanding how a strategy manages downside risk.
- Limited: Ability to manage at the sector and security level, outside defined parameters around a set equity/bond asset allocation
- Flexible: Ability to manage at the security, sector, geography, credit quality and asset allocation level
- Unconstrained: Complete control, including de-risking
We’ve simplified the portfolio construction process—not portfolio management.
It starts by establishing your client’s goals to set time horizon and return target.
We’ve made it easy for you to create customized portfolios that combine our in-house models with
managers we have extensively due-diligenced to add skill without overlap—creating a full suite of products that can work alone or blended to create nuanced portfolios that meet client needs.
Our core belief is that risk will be rewarded over time, and that combining different approaches to investment management offers the best way to build bespoke portfolios for your clients. We do the construction for you—so you can spend your time advising clients and building your business.
Mapping begins with a description of the client’s needs, which guides the portfolio composition.
Below are examples of three possible portfolios, based on client time horizon and return target:
3D Model Portfolios
3D offers a full suite of asset management products, including specialty strategies, that are easily deployed into custom client portfolios based on target return, time horizon and risk profile. We’ve made it simple to offer your clients fully diligenced, bespoke portfolios – so you can spend your time providing advice and growing your business.
3D Global Risk-Based Portfolios Using ETFs
Using exchange-traded funds (ETFs), 3D constructs equity and fixed income portfolios into risk-based blends suited to a range of investors’ tolerances for risk. For instance, the 3D Global 60 portfolio consists of a 60% allocation to global equities and 40% allocation to fixed income – the 60/40 ratios remain constant and are periodically rebalanced to target.
3D Global Risk-Based Portfolios Using DFA Funds
Using Dimensional Funds (DFA), 3D constructs equity and fixed income portfolios into risk-based blends suited to a range of investors’ tolerances for risk. For instance, the 3D Global 60 portfolio consists of a 60% allocation to global equities and 40% allocation to fixed income – the 60/40 ratios remain constant and are periodically rebalanced to target.
3D Targeted Fixed Income Strategies
Seeks low volatility, current income using ETFs to target a time horizon as specified by the vintage year in the portfolio (i.e. 2021). At the end of the time horizon, the fund is expected to be liquidated with net proceeds returned to investors.
3D Global Growth
Provide long-term superior risk-adjusted performance over a global market index like the MSCI All-Country World Index.
3D US Focused Equities
Provide long-term superior risk-adjusted performance over a U.S. broad market index like the Russell 3000 Index.
3D ESG Strategies
Provide a stock portfolio more closely aligned with Environment, Social, and Governance (ESG) standards as measured by third-party research firms focused on assigning ESG ratings to individual companies based on their business practices.
3D Targeted Outcome
The portfolio is structured to offer participation in general equity market risk but with capped upside and downside participation depending on the underlying portfolio structure using exchange-traded fund (ETFs). The strategy benchmark is a 50%/50% blend of the S&P 500 Index (Total Return) and ICE/BAML 3-Month Treasury Bill Index.
Lee Adaptive Large Cap Sector Strategy
Lee Adaptive Large Cap Sector Strategy (“Lee Adaptive”) is a U.S.-only equity strategy that seeks to avoid exposure to severe market downturns while participating in up markets using an adaptive, proprietary quantitative model that adjusts its strategy and positioning as the tenor of markets evolve.
Unmatched Service and Operational Support
3D systematizes and automates many functions and streamlines the entire process, making it easy to do business. We also provide experienced, expert, service-minded operations staff who get to know your practice and always answer the phone.
We provide every advisor with the support they need to optimize the time they spend helping investors. 3D service professionals handle your operational needs from account opening, funding and transfers, portfolio construction, account maintenance, and much more.
Fast, Personalized Service
We’re proud to deliver our high-touch service to assist with all your business needs:
- Dedicated, professional team trained to provide efficient service
- Fast, accurate processing
- Direct, responsive communication via online chat, phone, or email
- Develop a relationship that’s adaptable, friendly, and reliable
Senior, Knowledgeable Staff
Personal assistance and guidance from seasoned financial services experts. Our Advisor Service Representatives and Relationship Managers:
- Have a combined 40+ years of hands-on experience to provide superior customer service and satisfaction
- Expertly handle administrative and back-office tasks
- Know processes and requirements inside and out
- Proactively go to bat for you to appropriately address and expedite urgent cases and monitor response from start to finish
Easy to Work With and Eager to Assist
Our team can arm you with information and talking points. They help you:
- Confidently respond to client questions about their accounts, paperwork processing, exceptions, and more
- Be prepared and comfortable handling any queries regarding complicated items, changes with money managers, or other operational issues
- Be the first to receive all communications before they are made public