A Customized Investment Approach Specific to You
“We believe the current market environment, as well as what we expect to see for the future, demands the use of a dynamic tactical asset allocation strategy, one that includes diversification, the use of many asset classes, and allows for timely adjustments to both asset class and investment style.”
Using the information gained through Our Investment Planning Process, we apply our understanding of you as an individual and investor to create a customized asset allocation using three broad investment classes: Core, Satellite, and Alternatives.
These investments account for the majority percent of your assets and will act as the foundation of your portfolio. Two types of holdings comprise the asset allocation core:
Tactical ETF Portfolio will be invested in Exchange Traded Funds (ETFs) in two of six broad asset categories — cash, U.S. equities, foreign equities, commodities, currencies, and bonds — determined by relative strength*. The only exception to this rule is when cash is the strongest category, then the model will be invested in all cash.
*Relative strength indicates a stock’s price change over a period of time relative to that of a market index. Technical analysis is only one form of analysis. Investors should also consider the merits of Fundamental and Quantitative analysis when making investment decisions.
Long-term holdings consist of mutual funds or Exchange Traded Funds (ETFs) that invest in both stocks and bonds, and will generally be balanced between these two asset classes. “For larger allocations we will use our Tactical Equity Portfolio as a core holding.”
Satellite holdings represent the second largest percentage of your asset allocation and will be either a mutual fund or ETF that falls into one of two categories:
Investment Manager with a long-term track record of success over a market cycle. Managers or management teams that we believe have repeatedly performed well over an entire market cycle run these actively managed mutual funds.
Potential for Mid-term Appreciation over a six- to 18-month time horizon. These holdings may be invested in stocks, bonds, real estate, fixed income or any other asset class investable through mutual funds or ETFs.
Alternative (Low Correlating) Investments
These market investments have performance that typically correlates inversely with the traditional stock and bonds portfolio, and often represents a modest percent of assets managed, depending on your risk profile and time horizon.
To discuss your tactical asset allocation options, reach out to Magellan Financial to schedule a meeting.
Past performance is not a guarantee of future results
Asset allocation and diversification do not ensure a profit or preserve against a loss in a down market.
Advisory programs are not designed for excessively traded or inactive accounts and are not suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for these programs is between $25,000 and $200,000.