Tactical Asset Allocation (TAA) is focused on determining which of the securities markets are most undervalued on a risk/reward basis. The critical decision is the allocation of some percentage of the total investable funds into the stock, bond or cash markets. The percentages employed are the main determinant of a portfolio’s rate of return, and varying the allocated weightings as each of these markets experiences the inevitable ups and downs can make a great difference in the eventual value of a portfolio.

The decision to alter the proportions allocated to each market is produced by a proprietary mathematical model which takes into account investment value and risk.

Implementation of the strategy involves the use of no-load, low cost index-style mutual funds or collective investment funds which closely replicate the composition of the market we seek to enter. Such funds give us the ability to move efficiently into and out of the stock, bond, and cash markets and exploit the potential rewards of correctly identifying temporary market mis-pricings.