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Why Our 5-Star Overall Morningstar Rated Strategy Is a Game Changer in Tactical Investment Management

In the ever-fluctuating landscape of investment markets, achieving standout performance consistently is a formidable challenge. However, the WBI BullBear Trend Switch US 1000 SMA not only meets this challenge but exceeds expectations, as evidenced by its prestigious 5-Star Overall Morningstar Rating™ as of 3/31/2024, based out of 355 funds in the Tactical Allocation category. In this post, we delve into the innovative strategy that has set a new standard in tactical investment and how it can help investors navigate through the complexities of market cycles.

What Makes a 5-Star Morningstar Rating™ So Significant?

A 5-Star Morningstar Rating™ is not just an accolade; it's a testament to outstanding performance and strategic resilience. This rating is reserved for the top 10% of all funds within a category based on risk-adjusted returns. It reflects a fund's ability to deliver superior returns relative to peers while managing risk effectively. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance associated with its three-, five-, and 10-year Morningstar Rating™ metrics. For investors, this means confidence in a strategy that has consistently demonstrated excellence.

Morningstar Peer Analysis
Peer Analysis: WBI Trend Switch US 1000 vs. Tactical Allocation Category -- Source: Morningstar Direct

Past performance does not guarantee future results. Indices are unmanaged and cannot be invested in directly. Data is composite performance, net of WBI's maximum investment management fee. Returns are annualized for periods of more than 1 year. See additional disclosures at the end of this material.

Core Elements of the WBI BullBear Trend Switch US 1000 SMA

1. Predictive Analytics: Utilizing innovative proprietary technology, the strategy analyzes a broad spectrum of data, from macroeconomic indicators to specific market metrics. This allows it to generate predictive weekly signals to optimize investment positions — "risk on" for market upturns and "risk off" during downturns.

2. Dynamic Asset Allocation: By shifting between equities and cash or cash equivalents, the strategy aims to capitalize on growth opportunities in bullish conditions and protect capital during bearish phases. This adaptability is crucial for mitigating losses and enhancing long-term returns.

3. Proven Track Record: With a 30-year time-tested process, including navigating through varied market conditions, the strategy offers not just theoretical assurance but real-world proof of its effectiveness.

Performance Highlights

  • Short-Term Outperformance: As of the latest reports, the strategy outperformed 95% of its peers based on net returns over the past year as of 3/31/2024.

  • Consistent Long-Term Returns: Over the past decade, the strategy has consistently delivered solid returns, showcasing its ability to perform across different market cycles.

  • Superior Risk Management: Demonstrated by a significantly lower max drawdown compared to the broader market, highlighting the strategy's focus on preserving capital in volatile times.

Giving You a Strategic Advantage in Complex Markets

Investors choose the WBI BullBear Trend Switch US 1000 SMA not only for its performance but also for its transparent, data-driven approach. Each decision is backed by thorough analysis and a deep understanding of market dynamics. Whether you're looking to grow wealth in a bullish market or protect it during downturns, our strategy offers a balanced and proven approach to achieving your investment goals.

Ready to explore WBI's top-tier tactical strategy? Visit our website to learn more or contact us today to schedule a comprehensive strategy overview.

Past performance is not indicative of future results. This is not an offer to buy or sell any security. No security or strategy, including those referred to directly or indirectly, is suitable for all accounts or profitable all the time. This information is compiled from sources believed to be reliable, but accuracy cannot be guaranteed. You should not assume that any discussion or information provided here serves as a substitute for personalized investment advice from WBI or any other investment professional. If you have questions regarding the applicability of specific issues discussed to your individual situation, please consult with WBI or your chosen professional advisor. Additional information about WBI’s advisory operations, services, conflicts of interest and fees are in the Form ADV, which is available upon request or on the SEC’s website at WBI is a registered investment adviser. Registration of an Investment Adviser does not imply any level of skill or training.

Market conditions may call for the strategy to remain in any of the possible exposure allocations for an extended period of time. At times, market conditions and the particular Portfolio Strategy, may call for an allocation of 100% to cash or cash equivalents. If the portfolio strategy invests all or a substantial portion of its assets in cash or cash equivalents for extended periods of time, including when it is investing for temporary defensive purposes, it could reduce the strategy’s potential return as the limited returns of cash or cash equivalents may lag other investment instruments in a strong market.

Gross of Fee Performance excludes the effects of WBI’s investment management fee, third-party solicitor/advisor fees, custodial charges, and custodian platform charges, but is net of applicable account transaction charges and the separate fees assessed directly by each unaffiliated mutual fund holding (including ETFs) that was included in each Portfolio. Net of Fee Performance is net of WBI’s maximum investment management fees. This model fee approach consists of netting down 100 bps from gross returns on a monthly basis. Prior to 04/01/2023 some legacy accounts in the Trend Switch US 1000 composite had a management fee of 112.5 bps which exceeds the stated maximum management fee. More information is available upon request. The actual, annual investment management fee rate charged shall vary (typically between 75 bps and 100 bps, but no more than 100 bps) depending upon the market value of assets under management and the specific type of investment management services to be rendered.

Indices are unmanaged and may not be invested in directly. Indices used to benchmark performance do not reflect the deduction of transaction and custodial charges or investment management fees, which would reduce performance results. Because the strategy involves active management of a potentially wide range of assets, no widely recognized benchmark is likely to represent performance of any managed account. WBI managed accounts may own assets and follow investment strategies which cause them to differ materially from the composition and performance of the benchmarks shown.

Other strategies may have different results.

Except where otherwise indicated, the information contained in this presentation is based on matters as they exist as of the date of preparation of such material and not as of the date of distribution or any future date. Recipients should not rely solely on this material in making any future investment decision. 

© 2024 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar RatingTM for funds, or “star rating”, is calculated for separate accounts with at least a three-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.


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Unless otherwise indicated all performance is sourced from Bloomberg.


The views presented are those of the authors and webinar or podcast hosts/participants, and should not be construed as investment advice. The authors, podcast participants, webinar hosts, or clients of WBI Investments, LLC (WBI) may own stock discussed in these insights. WBl is an investment adviser in New Jersey. WBl is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. WBl only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of WBI's current written disclosure brochure filed with the SEC which discusses among other things, WBI's business practices, services and fees, is available through the SEC's website at: This site contains links to third-party websites. WBl does not endorse, approve, certify, or control these websites and does not assume responsibility for the accuracy, completeness, or timeliness of the information located there. Your access to and use of such websites is governed by the terms of use and privacy policies of those sites, and shall be at your own risk. WBI disclaims responsibility for the privacy policies and customer information practices of third-party internet websites.

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