INVESTMENT TACTICS

There are several factors to consider when managing a portfolio. The overriding criteria is meeting individual investment objectives while concurrently minimizing market volatility. We believe the combination of the modular components can provide enhanced risk-adjusted returns over time, but market trends or bull or bear market cycles can radically alter investment returns in any given time period. Therefore, monitoring and adjusting clients' portfolios as market conditions change is a necessity.

That is the function of the personal overlay manager. To orchestrate and translate ideas, information and strategies into money for you.

The identification of market trends may indicate the need for changes in the portfolio structure in one or more of the investment modules. For example:

• FIXED INCOME -establishes a minimum allocation according to the liquidity needs of the portfolio.
• REAL RETURN - utilizes income and total return vechicles to provide absolute returns
• CORE EQUITY- establishes a minimum allocation to the broad market, is a buy and hold strategy that is rebalanced periodically.
• CORE +/- may be tilted towards growth, value, large-Cap, Small-Cap or International to overweight the best performing sectors or Fixed income to decrease broad market exposure.
• TACTICAL/ALTERNATIVE - may be increased or decreased according to market conditions and the advisor's view on the equity markets and/or non-traditional asset classes.
• OPPORTUNITY/Special Situations - seeks opportunity and it's purpose is to be ready when it knocks.

As market conditions, or client's needs change, the advisor can shift allocations within each MODULE