FAQs

Structured Notes
Sub-Advisory
Defined Outcome Strategies
Trading
Billing

Structured Notes

  • Structured notes are term-limited instruments issued by large banks that offer exposure to the market with substantial principal protection. For more details, see our full structured notes brochure.

  • We currently offer Growth, High Yield, Growth & High Yield, RMD Growth (for qualified accounts), and Custom (tailored to your firm’s specific needs).

  • Our portfolio managers account for a variety of market factors to optimize the purchase of each structured note within our portfolios. A full allocation typically takes between 4-6 months.

  • You client’s funds will be held in a yield-bearing security while awaiting allocation into their chosen structured note model.

  • We maintain reserves for billing and distributions as follows:

    • Growth - 5%

    • High Yield - 4%

    • Growth & High Yield - 10%

    • RMD Growth - 20%

    • Custom - varies

  • We reinvest proceeds from notes that are called, sold, or matured, as well as excess cash (i.e., coupon payments).

  • You can see the details of every note your clients own by logging in to your Halo account with the credentials provided by your Altium relationship manager.

    If you have not yet received your Halo credentials, please contact your relationship manager or email support@altiumstrategies.com to request them.

  • Clients will receive the prospectus for each note that is purchased for their portfolios via email. The CUSIP for each note will appear in their custodial accounts.

    To provide your clients with more detailed information, including performance reporting, please log in to your Halo account.

  • Each model has its own parameters around distributions:

    • Growth - no distributions

    • High Yield - monthly, quarterly, or annually (6% max) + year-end bonus should performance permit

    • Growth & High Yield - single annual distribution/RMD + year-end bonus should performance permit

    • RMD Growth - single annual distribution/RMD

Defined Outcome Strategies (DOS)

  • DOS solutions use actively managed bond and option portfolios to protect principal when markets falter while capturing upside when markets are rising.

  • See the key features that set our solutions apart here.

  • Our team works collaboratively with yours to create, optimize, and deliver models that best suit the needs of your firm and your clients. We also provide off-the-shelf models for firms that prefer to focus on client service and asset acquisition vs. technical model development.

  • We have an experienced team of institutional traders and portfolio managers who provide full model delivery. If you prefer to trade the models in-house, we provide signals.

SUB-ADVISORY

  • We currently have relationships with Schwab and Fidelity. If you work with a different custodian, please get in touch directly at info@altiumstrategies.com.

  • Instructions for adding Altium as a sub-advisor can be found here.

TRADING

  • While our portfolios can be traded in a large number of account types, it’s typically preferable to invest in them through tax-advantaged accounts like IRAs since trading activity within the portfolios can produce taxable gains.

    Please note that while our structured note accounts can support systematic withdrawals (such as those required to satisfy RMDs for qualified accounts), they are not suitable for clients looking for high degrees of liquidity.

  • With some exceptions, defined outcome strategies can be executed in a variety of account types. If your firm’s DOS requires margin (i.e., buffered strategies that require shorting puts), they will not be suitable for qualified accounts.

  • Due to the nature of our actively managed portfolios, we require each of your clients to open a new SMA for each model they wish to invest in. Additional investments in the same model can be made in the same account.

  • All trade requests are submitted through your firm’s private Altium portal. Please contact your relationship manager or reach out to trading@altiumstrategies.com if you need assistance with access.

  • Since each model needs to be traded in its own SMA, each trade request must be for a single model only.

BILLING

  • Altium bills quarterly in advance. On-cycle billing occurs in the first month of each quarter. Off-cycle billing is prorated based on the number of days the account was invested.

  • For non-wrap accounts, Altium bills your clients’ account directly.

    For wrap accounts, Altium bills your RIA each quarter.