70% of portfolio assets are invested based on the quantitative results of the Multi-Factor Ranking System to overweight areas of the market the system favors. 30% of portfolio assets are invested based on a qualitative review of the market to provide.
At the first of each month, the top two ranked segments as identified by the Multi-Factor Ranking System are purchased or traded for the Portfolios. Other positions in the Portfolio are chosen and managed by the Investment Committee on a continual basis. Very importantly, the Portfolios can invest completely in cash or U.S Treasuries when appropriate.
The Portfolios rely on low-cost, high-quality ETFs to not only ensure the Portfolios are gaining the desired asset exposure at the lowest total cost of ownership but to eliminate manager tracking error. ETFs are an essential – and not to be overlooked — element in maximizing the risk-adjusted, after-tax, net-of- costs return for the Fund Architects Portfolios.
The chart above is calculated internally using Morningstar Direct software, and utilizes historical data for trades placed in the model portfolio. Performance data may not be representative of any individual client account as actual client account results may be lower or higher due to account specific activity. The performance data shown represents past performance, which is not a guarantee of future results Investment returns and principal value will fluctuate, so that investors’ shares, when sold, may be worth more or less than their original cost. This data has not been audited by an independent third-party source and has not been prepared to meet compliance with the Global Investment Performance Standards (GIPS®) No representation is made that the above performance is indicative of the experience of any one client. The performance shown is net of a 1.5% annual management fee and net of internal fund expenses. Dividends and interest are reinvested.