The program endorses a top-down value discipline that seeks to identify globally undervalued Markets, Economic Sectors, Industries, Fixed Income, and Specific Securities in “Super Cycles” that sell at deep discounts to both their respective and historical intrinsic values. “Super Cycles” are defined as undervalued Economic Sectors, and Industries in the Global Economy that our firm believes are best positioned for “Long-Term Growth”. The select list due diligence process begins with a rigorous screening process of the entire global universe of over 1000 Exchange and/or Index Traded Funds (ETFs).
Next, qualitative and quantitative assessments are applied for deciding on the best in class underlying funds that will end up making the Total Asset Fund (TAF®) portfolio. This extensive due diligence process of filtering out the entire global universe of all Exchange and/or Traded Index Funds includes but is not limited to the followings: 1) Researching organizational ownership, 2) Finding out portfolio management tenure, 3) Understanding the investment process and its implementation, and 4) Studying long and short-term performance results. This process also attempts to evaluate risk/reward parameters assumed by Exchange and/or Traded Index Funds as measured by their quantitative and/or Mathematical Calculations of Risk.
The followings are some of the criteria studied when quantitative risk parameters are evaluated: Beta, Alpha, Standard Deviation, Sharpe Ratio, and R-Squared. In addition, the followings are some of the risk parameters researched when qualitative data is included: Market Risk, Economic Sector Risk, Industry Risk, Significant Sector and Position Concentration Risk, Liquidity Risk, Management Fee Risk, and Net Asset Value Risk defined as market pricing at either above (Premium), below (Discount) or at (Par) to the Exchange Trading Fund’s true Net Asset Value.
The program utilizes asset management restrictions in order to achieve favorable risk/reward performance results independent of the market’s strength or weakness. The followings are the disciplines implemented: 1) The portfolio can’t hold less than six Exchange Traded and/or Index Funds (ETFs), 2) Account total cash position can’t exceed 30% of the portfolio value, 3) Industry Exchange Traded and/or Index Fund (ETFs) cost can’t exceed 10% of portfolio cost, 4) Industry Exchange Traded and/or Index Fund value can’t exceed 20% of portfolio value, 5) Sector Exchange Traded and/or Index Fund cost can’t exceed 30% of portfolio cost, and 6) Sector Exchange Traded and/or Index Fund value can’t exceed 45% of portfolio value. Also, throughout the tenure of the Total Asset Fund (TAF®) program, Global Asset Allocation models are either rebalanced quarterly, semi-annually or annually in order to achieve an optimal strategic asset allocation on the Efficient Frontier. This process of rebalancing a diversified global portfolio across a strategic combination of asset classes, in turn can potentially increase the investment overall returns while decreasing its volatility.
Lastly, periodic ongoing reviews are scheduled with all clients. This process includes the followings: 1) Review of the entire portfolio as well as its underlying Exchange and/or Index Funds (ETFs) benchmarked each quarter against their respective Equity and Fixed Income indexes, 2) Recalibrate each client’s asset allocation models as his or her life circumstances change, and 3) Present consolidated reporting that incorporates the Total Asset Fund (TAF®) portfolio with the entire holdings of the clients’ other investments disciplines.
TAF® Wrap Program Fee Schedule:
All Equity discretionary money managed programs which includes Total Asset Fund (TAF®) will adhere to the following pricing schedule:
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Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.