The TACTICAL UNCONSTRAINED GROWTH PORTFOLIO seeks to achieve long-term capital appreciation by producing gains across all stock market cycles.

Investment Strategy

The Tactical Unconstrained Growth Portfolio utilizes a proprietary algorithm to recognize changes in U.S. stock market direction and tactically position assets in response. In practice, the Portfolio can reflect any combination between 100% long equities, 100% exposure to bonds, and 100% cash. The system simply tilts back and forth with the equity market’s direction. The Portfolio can trade actively between bull, bear, and flat market conditions.

Portfolio Details

Inception: July 1, 2017
Benchmark: 75% S&P 500/ 25%
Bloomberg Barclays U.S. Aggregate
Bond Index

Portfolio Statistics

Alpha: N/A
Beta: N/A
Upside Capture: N/A
Downside Capture: N/A
Standard Deviation: N/A
Sharpe Ratio: N/A

Portfolio Statistics are based on a 1 year rolling time-frame, and are calculated using monthly return data relative to the portfolio benchmark. Source: Morningstar Direct

Tactical Unconstrained Growth Portfolio

Prepared By Design

Straightforward recognition system that determinedly looks for “what” direction the stock market is moving with no concern about “why”.

Can Participate In Any Market

Tactically positions assets in bull, bear, and flat markets in attempt to enhance long-term growth and try to reduce drawdowns.

Efficient Market Proxies

Only utilizes ETFs of algorithm-suitable equity and fixed-income indexes to reduce rebalancing bias, tracking error, and trading expenses.

Trailing Returns as of 12/31/2017* Gross Return Net Return Benchmark Return
1 Month 0.35% 0.35% 1.04%
3 Month 6.76% 6.33% 5.17%
6 Month  11.52% 10.91%  8.83%
 YTD   –  –
 1 Year   –  –
 Inception (7/1/2017)  11.52% 10.91%  8.83%

Investment Growth

6/30/2017 to 3/31/2018

*Gross Returns are presented before management fees, but after all trading expenses and all expenses charged by the underlying funds and investment vehicles. Net Returns are based on gross returns and are calculated by deducting the management fee charged both by Fund Architects, LLC., and any introducing advisor if applicable. Returns shown over one year are annualized. See below for additional disclosures.

Standard Deviation – Standard deviation is a statistical measurement of dispersion about an average, which, for an investment, depicts how widely the returns varied over the time period indicated. Morningstar computes standard deviation using the trailing monthly total returns for the time period. All of the monthly standard deviations are then annualized.

Alpha – Alpha measures the difference between an investment’s actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the investment has performed better than its beta would predict. In contrast, a negative alpha indicates that the investment underperformed, given the expectations established by its beta. Alpha is often seen as a measure of the value added or subtracted by a portfolio manager.

Beta – Beta is a measure of an investment’s sensitivity to movements in a benchmark. A portfolio with a beta greater than one is more volatile than the benchmark, and a portfolio with a beta less than one is less volatile than the benchmark.

Sharpe Ratio – Sharpe ratio is calculated by taking the investment’s average monthly excess return over the user-defined risk-free rate and dividing by the monthly standard deviation of excess returns to determine reward per unit of risk. A higher Sharpe ratio reflects better historical risk-adjusted performance.

Up/Down Percentage Ratio – Up/Down percentage ratio is a measure of the number of periods that the investment outperformed/underperformed the benchmark when the benchmark had positive/negative returns. A larger/smaller ratio is better.

Currency – The currency used for data in the report is US Dollar (USD).

Benchmark – Benchmark- 75% S&P500 / 25% Bloomberg Barclays U.S. Aggregate Bond Index is a blended benchmark, rebalnced quarterly

Top Constituents

Weightings %
Cash 25%
First Trust NASDAQ-100 Equally Weighted ETF 25%

PowerShares QQQ ETF


First Trust Senior Loan ETF


Constituents change frequently. The positions shown above are meant
for illustration purposes only, and are likely different than the Portfolio’s
current positions.

Equity Sector Breakdown

Portfolio % Benchmark %
Basic Materials 0.00% 2.68%
Consumer Cyclical 18.37% 11.79%
Financial Services 1.10% 17.01%
Real Estate 0.00% 2.24%
Comm Services 5.20% 3.31%
Energy 0.00% 5.76%
Industrials 6.85% 10.69%
Technology 48.89% 21.83%
Cons Defensive 5.37% 7.87%
Healthcare 14.23% 13.96%
Utilities 0.00% 2.86%

Style Breakdown

Portfolio % Benchmark %
Value 15.55% 33.40%
Core 25.39% 32.91%
Growth 59.06% 33.70%

Top World Regions

Portfolio % Benchmark %
Americas 92.64% 99.13%
Greater Europe 2.48% 0.36%
Greater Asia 4.58% 0.51%

Source: Morningstar Direct, as-of dates shown above. Top Constituents and portfolio data changes frequently; current data is most likely different. This information is intended only for illustration purposes only. Contact Fund Architects directly at 866-539-4186 for updated information. ”

Asset Allocation

Equity Sectors

The Asset Allocation and Equity Sectors charts above are calculated internally using Morningstar Direct software, and utilizes historical data for trades placed in the model portfolio. This data has not been audited by an independent third-party source. No representation is made that the above performance is indicative of the experience of any one client.

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.

All investment strategies have the potential for profit or loss Changes in investment strategies, contributions or withdrawals, and economic conditions may materially alter the performance of your portfolio.

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s investment portfolio.

Historical performance results for investment indexes and/or categories, generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results Depending upon the holdings in your portfolio, your investment objectives, and your risk temperament, it may be more appropriate to measure performance against a different benchmark There are no assurances that a portfolio will match or outperform any particular benchmark .

Fund Architects, LLC, is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements SEC registration does not constitute and endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.