8 New Funds in our models
“You have to believe in your process. You have to believe in the things that you are doing to help the team win.”
With the Salt Creek fourth quarter re-balance completed on Friday, the new allocation should continue to benefit from ongoing market gains. The portfolios contain eight funds that are different from last quarter and one new ETF. There will be two ETF’s in the portfolio for the 4th quarter.
Our consistent process attempts to identify the best active fund managers based on a quarterly analysis performed by the Salt Creek team. The use of rigorous mathematical and statistical methods produces a set of managers exceeding certain predetermined criteria when examining their expected alpha, upside potential, downside probability, and style. It’s worth noting that on occasion no active manager among the hundreds we screen will meet our selection criteria. When this happens, we feel that to pay for active management is not prudent and thus an ETF is selected for the models. This quarter’s allocation has AGG in one of the bond sleeves and EWJ in the sleeve for exposure to Japan.
Our goal is to choose those active managers we feel most likely to produce outcomes that align with the objectives of your clients. And by exposing the portfolios to as many diverse and non-correlated factors as possible, we can capture various risk/return premia while moderating downside volatility.
As you consider the information provided with the Salt Creek Investors Asset Allocation Platform (the “Program”), please review the following:
The information and descriptions provided about the Program are for educational and information purposes only and should not be used or construed as investment advice, an offer to sell, a solicitation of an offer to buy, a recommendation for any security, or suggest any course of action. LaSalle St. Investment Advisers (“LSIA”) does not guarantee that the information or descriptions supplied about the Program are complete or timely. LSIA makes no warranty with regard to any results obtained from the Program or its deployment. LSIA is not responsible for any direct or incidental loss incurred by relying on information provided about the Program. The allocations presented herein are illustrations and completely hypothetical. None reflect actual investments or investment results and do not reflect allocation of any individual portfolio. Asset allocation and its results vary over time. Other allocations or asset investment categories not offered in the Program may have characteristics similar or superior to those illustrated. Past performance of any model or allocation is no prediction of future results. Neither the Program nor any system/model can predict the future of any market or price movement in a market. Diversification and asset allocation do not guarantee against the risk of investment loss, including risk of loss of principal. Information provided regarding the Program is as of the date of publication and may change at any time without notice. Information has been included which was obtained from third parties and is believed to be reliable and complete. LSIA does not warrant the accuracy or completeness of such information. LSIA is a registered investment advisor and does not provide tax, accounting or legal advice ‒ the information and/or descriptions provided do not constitute such advice. More information regarding LSIA and its investment strategies can be found in the LSIA brochure, ADV Part II, which is available online or through LSIA. Asset allocation may not be suitable for all investors. Before deciding to invest, potential participants should consult with an investment adviser to determine an appropriate investment strategy and methodology which meets the investor’s specific financial needs, objectives, goals, time horizons and risk tolerance. The information and description provided herein has been made without consideration of any investor’s particular suitability for investing in the Program. Asset allocation also involves investment in various asset classes which are not insured by the government. Investing in fixed income and/or high yield securities involves additional concerns including interest rate risk, credit risk and reinvestment rate risk. Investing in securities outside the United States may entail greater risk than investing in domestic U. S. markets. These risks typically include political and economic uncertainty of foreign countries as well as currency exchange fluctuations, including foreign currency exchange rates, political risks, different methods of accounting, financial reporting and foreign taxes. The prospectus accompanying a security should carefully be reviewed before investing. The services described herein are available to persons residing in any state where they would otherwise be contrary to local law or regulation.
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