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Approach

The Milwaukee Company provides portfolio management, wealth preservation, tax, and estate planning advice to its clients.  The Milwaukee Company utilizes rules-based investment strategies based on extensive academic research and theory that tactically adapts client portfolios to reflect changes in economic and market conditions in an effort to enhance risk adjusted rates of return and reduce portfolio volatility.

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Core Beliefs

Unlike market prognosticators who base their investment advice on their ability to forecast the future and outsmart the market, The Milwaukee Company’s investment approach is founded in academics, statistics, and historical evidence.

The Milwaukee Company’s rules-based strategies are designed to lower risk in comparison to a buy and hold approach.  The Milwaukee Company believes that academic research and extensive backtesting leads to better long-term results than investments directed by predictions or market timing.  The Milwaukee Company also believes that tactical asset allocation strategies based on market factors such as volatility and momentum are superior to stock-picking strategies or strategies driven solely by market valuations.

Investment Approach

The Milwaukee Company’s investment approach is based on our belief that over the long-term, investment results are optimized by investing primarily in a strategically diversified portfolio of index-based exchange traded funds (“ETFs”) that are monitored over time, periodically rebalanced, and adapted to current conditions using quantitative models that incorporate changes in the securities market and the economy.  Our approach emphasizes the way portfolios are built and managed over stock picking or market timing.  In short, we avoid swinging for the fences in favor of a higher batting average.

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Risk Management

The Milwaukee Company’s investment strategies are designed to generate alpha over the long term by lessening risk over the short term.  Our strategies use academically tested risk management techniques such as dynamic asset allocation, trend following, mean variance optimization, and probability distributions in an effort to lessen declines in portfolio values during secular bear markets.  At the same time, because the stock and bond markets must compensate investors for taking risk, risk management strategies should be expected to under-perform riskier strategies in time periods without major asset class corrections or when market volatility spikes during secular bull markets.  This is the “cost” of avoiding drawdowns.  The “return” is the likelihood of better performance over periods of time that include both ends of the market cycle.

Additionally, The Milwaukee Company monitors many widely accepted capital market risk signals and economic indicators in order to gauge the risk of the overall market and current economic conditions.  The Milwaukee Company has developed a composite index of these indicators, which we refer to as the “Milwaukee Company Hedge Index” (or “MCHI”), to assist us in determining when a hedge against an equity market correction should be considered.

Benchmarking

The Milwaukee Company compares the performance of client accounts to a benchmark comprised of broad market index funds with allocations that are consistent with each client’s individual investment objective.  We believe that an investment benchmark should be unambiguous, investable, measurable, and robust.  We also believe the performance and management of a benchmark should be safeguarded from manipulation, and unburdened by market frictions experienced by real-life portfolios such as transaction costs, expenses, management fees, and capital gains taxes.

We perform a monthly attribution analysis of the performance of the investment strategies used to manage our client’s portfolios versus their benchmark.  This helps us to identify the components of each strategy that contributed to the out-performance or under-performance of the portfolio as compared to the benchmark.

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Tax Management

Even the best investment performance can be undermined if the impact of taxes is not carefully considered.  Therefore, The Milwaukee Company is careful to avoid unnecessary or excessive ordinary income taxes, and to proactively manage capital gain taxes.

Wealth Management

The Milwaukee Company recognizes that protecting wealth from creditor claims, transferring of wealth to younger generations, and charitable giving are very important components of successful investing.  Andrew Willms has 30 plus years of experience as an attorney practicing in the areas of trusts and estates, estate and gift tax planning, asset protection planning, and tax law.  This experience allows The Milwaukee Company to offer unique insights on the structuring, management, and ownership of investment portfolios in ways that can facilitate wealth management and preservation for generations to come.  The Milwaukee Company is also qualified to provide clients with advice on charitable giving strategies, charitable trusts, and private foundations.

Services provided by The Milwaukee Company do not constitute legal services and therefore communications with The Milwaukee Company are not protected by the attorney-client privilege.
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Reporting

Client accounts are custodied at Fidelity Investments and can be directly accessed, revised, and monitored by The Milwaukee Company clients.  Fidelity Investments provides The Milwaukee Company’s clients with statements of all client account activity.

The Milwaukee Company also uses Morningstar software to generate monthly and yearly reports of client account activity and performance.  These reports are posted to a secure web portal that our clients may access online.

Fees

The Milwaukee Company’s portfolio management fees are based on a percentage of the value of a client’s account on the last day of each month.  The Milwaukee Company does not charge a fee for cash or cash equivalents held in an account.  Management fees are billed on a monthly basis, in arrears, based upon the market value of the assets on the last day of the previous month.

The Milwaukee Company does not charge a fee per transaction or receive commissions from our clients.  Fees paid to us for investment advisory services are separate and distinct from the fees and expenses charged by mutual funds or exchange traded funds to their shareholders.  Fees paid to sub-advisors (if any) are born solely by The Milwaukee Company and do not result in an increased fee to our clients.  We do not charge performance-based fees or participate in side-by-side management arrangements.

The Milwaukee Company Fee Schedule

Assets Under Management Management Fee
First $1,000,000 0.75%
Next $1,500,000 0.60%
Next $2,500,000 0.50%
Next $10,000,000 0.40%
Over $15,000,000 0.35%
The Milwaukee Company reserves the right to adapt its standard fee schedule when it deems, in its discretion, it is appropriate to do so.
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The content found on this website is for informational purposes only. Nothing presented on this website should be regarded as investment advice or as a solicitation for the provision of investment advice or for the purchase or sale of any security or investment.  Visitors to this site should conduct their own independent research before acting on any information found on this site. To learn more please refer to our Terms & Conditions.
The Milwaukee Company™ is a tradename of Estate Counselors, LLC.  Services provided by The Milwaukee Company™ do not constitute legal services, and neither The Milwaukee Company™ nor Estate Counselors, LLC are law firms or are licensed to practice law in any state or jurisdiction.

Address

414 N Main Street

Thiensville, WI 53092

Phone

(262) 238-6980

Fax

(262) 238-6999