Structured Notes may efficiently tap into emerging investment themes, while offering an enhanced yield, market participation, and downside protection.
In this episode of “Meet the Manager,” we are joined by Michelangelo Dooley, CFP, Portfolio Manager for NewEdge Investment Solutions. He discusses how advisors can use Structured Notes to help boost investment performance while protecting client portfolios at the same time.
Michelangelo also focuses on how NewEdge Investment Solutions has grown into a global leader in Structured Notes portfolio management. He discusses their two distinct strategies, the Structured Note Income Portfolio (SNIP) and the Structured Note Advisory Portfolio (SNAP), and why advisors like NewEdge’s service model, SMA capabilities, and GIPs compliant performance reporting.
For more information on NewEdge Investment Solutions strategies, you can request the fact sheets for both the SNIP and SNAP strategies here: Request Strategy Fact Sheets.
Please note that 3rd party views, opinions, commentary, and materials presented herein does not reflect those of Halo Securities, LLC, its employees or affiliates.
Full Video Transcript:
Introduction to NewEdge Investment Solutions Portfolio Management
Duration 0:08-0:27
My name is Michelangelo Dooley. I am a portfolio manager for NewEdge Structure Note Strategies (NewEdge Investment Solutions). I’m a former wealth advisor that focused on, high net worth and ultra high net worth clients turned full time portfolio manager.
How NEIS Became a Leader in Discretionary Structured Note Management
Duration 0:27-1:04
The decade that I had working with structured products was formally as an advisor. We had a large book of business where structured notes were central to that. This was a challenge both for us as advisors to manage and for some clients in the outcomes that they were generating. So we came up with a better process. Back in 2018, I started dealing with structured products in a discretionary portfolio strategy. We created the SNAP strategy in 2022. I came to NewEdge Wealth in order to try to institutionalize what we had already started.
The difference between NewEdge Wealth and NEIS
Duration 1:04-2:00
NewEdge Investment Solutions, or NEIS as we sometimes call it, is the dedicated portfolio management arm of NewEdge Wealth. It’s this division that the SNIP and SNAP strategies sit within where where we can manage our portfolios and have the resources and institutional capabilities that many larger firms have, but with the focus of a much smaller firm like NewEdge Wealth. Within NewEdge Investment Solutions, we have a dedicated investment team to structured notes that helps advise on bigger decisions within the SNIP and the SNAP strategy. New Edge Investment Solutions is a separated division from NewEdge Wealth. NewEdge Wealth is an RIA, and that is critical to being close with advisers and understanding what they’re seeing and what they want. But at the same time, we understand the importance of being divided if we are working with you. And so NewEdge Investment Solutions is that separated division with investment professionals focused on portfolio management.
The NEIS Service Model Difference
Duration 2:00-2:19
The service model that we follow on my team is going to be to try to provide you as much transparency and detail as you can get both to you, the adviser, and to your clients. That service, transparency and differentiated portfolio outcomes are really things that we think add a lot of value.
GIPs Compliance and Strategy Oversight
Duration 2:19-2:50
Our division has GIPs standardization. We report according to GIPs policies, and you can trust that when we are reporting data to you, whether it be performance data, strategy information, assets, that that is going through the rigors of GIP’s compliance. We have compliance oversight, supervision, a dedicated trading team, dedicated portfolio management team, and me as a dedicated GM. These are resources that are all there to ensure that you are getting the best outcome within NewEdge structured note strategies.
Introduction to NewEdge Structured Note Strategies
Duration 2:50-3:30
SNIP and SNAP are Structured Note Income Portfolio and SNAP being Structured Note Advisory Portfolio. We want to try to generate high single digit type returns on a consistent basis over a market cycle. One of them will focus primarily on tax efficiency with a little bit more growth. That’s SNAP, structured note advisory portfolio.
And the SNIP strategy focuses on income generation solely. So you can choose between tax efficiency or income within these strategies. All structured note strategies are 1099, so you don’t deal with K-1 tax reporting, a big deal for many investors.
Strategy Performance and Use Case
Duration 3:30-4:13
Our structured note strategies are often very tied into things like volatility in the market, where interest rates are, and overall, what are equities and broad markets expected to perform when we think about performance of strategies relative to the bond market. Having a piece of your portfolio that is not tied to the performance of equities, that is not tied directly to the performance of bonds and is able to generate high single digit returns regardless of what happens in those markets. That can be critical to allowing your clients to continue to hit their targets and their investment targets regardless of what happens in the broader market. Investors are often trying to smooth out how they’re balancing these equity and bond portfolios.
Benefits of Actively Managed Structured Note Strategies
Duration 4:13-4:35
We believe that structured notes, specifically our SNAP and SNIP strategies, allow us to smooth out those returns and generate equity-like returns without relying on equities in order to generate them. It gives you the consistency in some ways that a bond would give you, but at a much higher yield than what you can lock in with traditional corporate or municipal bonds.
Please see our Halo Disclosure Page for important disclosures.
An investment in Structured Notes may not be suitable for all investors. These investments involve substantial risks. The appropriateness of a particular investment or strategy will depend on an investorโs individual circumstances and objectives.
Please note that 3rd party views, opinions, commentary, and materials presented herein does not reflect those of Halo Securities, LLC, its employees or affiliates.
This communication is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument. All information contained in this communication is from third party sources and is not warranted as to completeness or accuracy and is subject to change without notice. Any comments or statements made in this communication do not necessarily reflect the views of Piton Investment Management or Halo Investing. The foregoing information has not been provided in a fiduciary capacity and is not intended to be, and should not be considered as impartial investment advice. This document shall not constitute an offer to invest. Accordingly, this document should not be relied on in making any investment decisions. You should talk to your financial professional before making a decision to invest.
