Multi-Strategy Models

Description: Our Multi-Strategy Models are oriented with risk-management (low-volatility) as the first priority.  One of the goals of this approach is to have consistent returns over time and avoid wild swings.  To do this, we utilize multiple levels of diversification. For instance, we use ETFs to diversify across many companies, Asset Allocation to diversify across different asset classes, and a variety of actively managed strategies so that our performance is less dependent on any single investment philosophy.  Because this approach will vary its exposure to the market based on risk, its performance often doesn’t track with the market.  It may underperform some years and outperform other years because of the way risk is managed.

The table below shows the make-up of each of these models and the weight given to each strategy within each model.

Twice a month the Sector Rotation strategy filters through a basket of market sectors, asset classes and international countries to determine which pockets of the market have the best potential over the next month.  The Calendar system is invested in such a way to take advantage of the market’s historical seasonal tendencies.  The Breadth system looks at the relative performance of Small-Cap to Large Cap and International to US to determine whether to be aggressive or conservative.  And the Discretionary allocation gives us flexibility to make small adjustments to the portfolios based on things that we see in the markets.

Model Portfolios

Strategy Conservative Conservative Blended Moderate Moderate Blended Balanced
Sector Rotation 12.8% 25.0% 19.2% 19.2% 22.4%
Calendar 9.6% 14.4% 16.8%
Breadth 13.6% 20.4% 20.4% 23.8%
Discretionary 4.0% 5.0% 6.0% 6.0% 7.0%
Passive Mix 15.0% 20.0%
Bond Mix 60.0% 60.0% 40.0% 33.0% 30.0%

 

Minimum: 35,000

Fee: Varies from 1.0% to 1.7% depending on the strategy

Performance: Performance show is after fees.

Model 2019 (ytd)  2018  2017  2016 
Conservative Active 3.41% -1.60% 6.69% 5.85%
Conservative Blended 9.43% -1.84% 9.23% 2.32%
Moderate Active 2.75% -1.98% 7.54% 6.37%
Moderate Blended 4.92% -2.80% 9.68% 6.71%
Active Balanced 2.34% -2.26% 8.20% 6.67%

* YTD as of 09/30/19