International Select (IS) provides concentrated exposure to tactical “best ideas” in international equity, retaining global flexibility in effort to minimize volatility and protect capital in changing market conditions.

Objective: The strategy seeks to outperform over a full market cycle by pursuing international sources of momentum on the basis of style, sector, region and volatility. 

Primary asset class: International equity

Tactical ranges:

• Equity: 0% – 100%
  • Developed international: 0% – 100%
  • Emerging markets: 0% -100%
  • Core global & global sectors: 0% -50%

Target allocation: 100% international equity

Portfolio construction ideas:

• Rules-based macro-overlay to complement existing strategic fund allocations in global or ex-US portfolio
• Core ex-US component of global equity portfolio in combination with strategic US holdings

Sector Select (SS) is a tactical, rules-based strategy that identifies and allocates to momentum leaders among primary sectors of the S&P 500. By eliminating exposure to the bottom ranked sectors, the multifactor model aims for minimized risk while remaining fully invested.

Objective: The strategy aims to provide concentrated exposure to the most compelling, momentum-driven sector stories in US large cap equity.

Primary asset class: US large cap equity

Tactical ranges:

• US Equity: 0% -100%
  • Sector A: 0% – 48%
  • Sector B: 0% – 14%
  • Sector C: 0% – 12%
  • Sector D: 0% – 12%
  • Sector E: 0% – 12% 

Target allocation: 100% US equity sectors

Portfolio construction ideas:

• Alternative to pure value holdings
• US equity component of listed alternatives portfolio
• Completion portfolio for core equity: equal-weighted sector exposure providing style and size diversification relative to cap-weighted

Factor Select (FS) provides concentrated exposure through strategic beta to factor leadership within US equity. The strategy uses quantitative models to examine patterns in investor behavior that may induce a “regime shift” or a change in market sentiment at a given point in the economic or factor cycle. Objective: Over a full market cycle, outperform the S&P 500 by pursuing growth through factor-based approach Primary asset class: US equity Tactical ranges: 

• Momentum, 0%-100%
• Growth, 0%-100%
• Value, 0%-100%
• Low-Volatility, 0%-100%
• Defensive sector combinations, 0%-100%

Portfolio construction ideas:

• Use as satellite for strategic/ core US equity portfolio – return enhancement in constructive markets
• Position as volatility dampener in aggressive long-only US equity portfolio
• Introduce as completion component for fundamental stock portfolios

Credit Select Risk-Managed (CSRM) is a dynamic approach to multi-sector fixed income, built to enhance total return and manage duration over a full market cycle.

Objective: Increase total return over a full market cycle through opportunistic yield enhancement in constructive credit markets; dynamic duration management across markets; rapid de-risking in negative credit conditions; tail-risk hedge in extreme environments

Primary asset class: High yield debt

Tactical ranges:

• High yield: 0% to 100%
• Investment-grade fixed income & cash: 0% – 100%
  • “Calibrate” duration
  • Ultra-short to intermediate-term & floating-rate

Target allocation: 95% high yield, 5% investment-grade fixed income & cash

Portfolio construction ideas:

• Enhance total return in core fixed income portfolio: manage duration and  opportunistically shore up yield without strategic commitment to higher-risk credit segments
• Use as satellite allocation to individual bond portfolio: liquid complement to laddered corporates, for example
• Complement strategic high yield allocations: provide tactical asset class “hedge” alongside buy-and-hold high yield exposure
• Consider as an allocation within a liquid alternatives portfolio: lower-volatility complement to long-short equity holdings

Global Allocation Risk-Managed (GARM) was built to serve as a comprehensive core global asset allocation solution; it deploys capital tactically between and within various sub-strategies, each of which rely on independent, multi-layered risk management frameworks. GARM’s overall goal is to align capital with select risk-asset momentum in constructive markets, manage drawdowns amid normalized market volatility, and de-risk rapidly when market deterioration is abrupt and severe.

Objective: Capture long-term upside in equity & high-income asset classes while managing drawdowns and maintaining long-term average allocation comparable to 60/40 portfolio

Primary asset class: Global equity & global income assets

Tactical ranges:

• Equity, 0%-65%
  • US: 0%-45%
    • Large cap: 0%-25%
    • Mid cap: 0%-10%
    • Small cap: 0%-10%
  • Core global & global sectors: 0%-30%
  • Developed international: 0%-10%
  • Emerging markets: 0%-20%

•  Fixed income, 35%-100%
  • High yield & specialty income: 0%-35%
  • Investment-grade fixed income & cash: 0%-100%

Target allocation: 65% equity, 35% fixed income

Multi-layered risk management:

• Within asset classes
  • Rotations between size, style, geography: for example, can eliminate emerging markets in favor of increased US exposure
  • Security selection/ strategic beta: for example, can hold specific global sectors rather than broad-based global or minimum-volatility rather than market-weight exposure
• Between asset classes
  • Top-down allocation is a function of independent, rules-based “calls” made by underlying sub-models (i.e., sub-models’ exposure rolls up to overall allocation)
  • Strategy can de-risk completely – range of 0%-100% defensive fixed income & cash

Portfolio construction ideas:

• Use as primary allocation/ core of globally diversified balanced portfolio – complement with individual US stocks & bonds held to maturity
• Incorporate as rules-based macro overlay to complement existing strategic fund allocations
• Position as liquid global macro component of alternatives allocation, especially alongside fundamental strategies

Diversified Income Risk-Managed (DIRM) is a “go-anywhere” income strategy that aims to enhance total return through non-traditional income sources while maintaining a balanced risk profile and managing drawdown relative to long-only aggressive income strategies.

Objective: Provide robust total return through non-traditional income sources including junk bonds, infrastructure, MLPs, listed private equity, convertibles & preferreds

Primary asset class: Non-traditional income

Tactical ranges:

• 0%-80%: Developed ex-US & EM sovereign bonds
• 0%-40%: High yield
• 0%-40%: MLPs
• 0%-40%: Income equities
• 0%-20%: Specialty sectors
• 0%-20%: Precious metals
• 0%-100%: Duration-managed core US bonds
• 0%-100%: Cash

Target allocation: 100% in non-traditional income assets

Portfolio construction ideas:

• Introduce as “income macro” allocation in aggressive income portfolio
• Use as total return satellite for strategic core fixed income portfolio
• Reduce max drawdown profile of strategic high yield, MLP or special equity allocation

Listed Alternatives (LALTS) is a rules-based solution designed to offer tactical, flexible exposure to a broad universe of liquid alternatives strategies. The strategy attempts to replicate the capital protection and risk-adjusted return characteristics of hedge funds and other strategies comprising “alternatives” space, but aims for improved liquidity, transparency and cost-efficiency by leveraging publicly traded instruments.

Objective: Deliver flexible and liquid exposure to a range of alternative assets

Primary asset class: Listed alternative funds

Tactical ranges: 

• Growth & diversification-focused alternatives, 42%-100%
  • Non-traditional equity, 9%-32%
  • Non-traditional fixed income, 28%-53%
  • Hedged multi-strategy, 5%-15%
• Capital preservation assets, 0%-48%

Target allocation: 100% alternatives

Portfolio Construction Ideas:

• Substitute flexible, cost-efficient and liquid exposure for non-listed alternatives
• Complement private portfolio with liquid strategies
• Use cyclically or as a transition tool when equity & fixed income rebalance appears untimely due to market conditions