The Tactical Allocation Process
Arlington Financial Services (AFS) has a formed a strategic alliance with Compass Investors to deliver a proven tactical allocation investment process. The tactical allocation investment process has been used by retirement investors for over ten years and has provided outstanding results. The following is a brief description of the tactical allocation methodology developed by Compass Investors and used by AFS for the benefit of their clients.
Using the results of millions of mathematical calculations, every five (5) weeks Compass Investors supplies AFS with an Action Report. This Action Report contains an unbiased analysis of our collection of roughly twenty (20) pre-selected mutual funds. The Compass computer model analyzes these funds and determines those funds that are best positioned to prosper over the next five (5) weeks.
The computer model follows a 5-step process.
- Each mutual fund in our portfolio is first divided into multiple time slices.
- Next, the direction (up or down), degree (angle of movement) and the duration (elapsed time) of each time slice are evaluated.
- A weighting is then applied to each time slice.
- The sum of each of the time slice weightings are added together to produce the Score for the fund. The Score is included in the Action Report.
- A percentage-holding amount is then determined for each fund based on the relative Scores of each of the fund choices. The percentage is included in the Action Report and generally the top scoring four(4) funds are selected for investments.
The number of time slices, the weighting algorithms and the percentage amounts are the results of five years of extensive study by the Compass Institute.
They tested over 500,000 possible permutations of factors to come up with the correct combination that would provide the optimal results when applied to any combination of mutual funds.
The Action Report prompts our review and, if necessary, a reallocation of your funds, empowering us to take a proactive approach over this portion of your investments.
You can learn more about this process by visiting Compass Investors website at www.compassinvestors.com.
William S. Paddor is an investment advisor representative of Vanderbilt Advisory Services. Arlington Financial Services and Vanderbilt Financial Group are separate and unaffiliated entities. Vanderbilt Financial Group is the marketing name for Vanderbilt Advisory Services and its affiliates. Advisory Services offered through Vanderbilt Advisory Services For additional information on services, disclosures, fees, and conflicts of interest, please visit www.vanderbiltfg.com/disclosures