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Strategically Optimizing Assets
Since April 16, 2007, when we began to apply our proprietary models
to manage strategic allocation investment programs such as our Strategic ETF Asset Optimizer program, the credit markets seized up, the economy collapsed, and the stock market crashed.
Although a substantial rebound has occurred from the March 2009 "crash low," it has become more obvious this decade that a "buy-and-hold" strategy is not effective in building wealth for one's financial future. Investors whose experience mirrored the S&P 500 Index first saw a $100,000 investment on April 16, 2007 sink to a value of approximately $54,000 on March 31, 2009, then rebound to only $78,762 at the end of September 30, 2009, for a cumulative loss of -21.2% including dividends. Even investors with a typical mix of stocks, bonds, and commodities lost approximately -8.3% since April 2007, as mirrored by our Program's benchmark, the Strategic ETF Asset Composite Index, ending up with only $91,711 on September 30, 2009 even after the largest stock market rebound in decades.
By contrast, our Strategic ETF Asset Optimizer program preserved investor capital very well during the historic 30-month period since the Program's inception, returning +7.50%, for a hypothetical value of $107,496 on September 30, 2009, net of fees (see chart page 1). This means that a person who invested $100,000 on April 16, 2007 and who experienced the composite returns of client accounts in the Program dipped down to approximately $88,000 at the March 2009 low and now has $107,496 despite the collapse of the financial markets and the economy during a portion of that period. That amount represents a full 15.8 percentage points better than the Program's benchmark.
We attribute the program's success to its unique methodology. Program designer and portfolio manager, Dan Ascani, utilizes his proprietary quantitative (mathematical) models to strategically reallocate and rebalance the portfolio’s assets across three primary asset classes—equities, fixed income, and alternative investments such as commodities, gold, and currencies. Our methodology optimizes the proportion of portfolio assets in each primary asset class according to variables such as the expected direction of the stock market, interest rates, commodities, and the U.S. dollar.
The proprietary models are designed to be particularly adaptive to changing market conditions, and to become defensive when the equity market turns down and preservation of capital is of the utmost importance. If value is to be found by reducing exposure to one asset class and increasing investment in another, the program manager strategically reallocates the Program’s investments.
The program generally invests in each asset class within a pre-defined range:
Equity ETFs: 20% to 60%
Fixed Income ETFs: 25% to 40%
Alternative ETFs: 10% to 20%
Cash: 5% to 20%
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Call for program information and returns
Investment Objective Risk Tolerance Portfolio Composition Benchmark Portfolio Manager and program designer Base Management Fee Minimum Account Size
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We manage three discretionary ETF investment programs:
| 1. | Long/Short ETF Optimizer program |
| 2. | Diversified ETF Optimizer Program |
| 3. | Strategic ETF Asset Optimizer Program |
