Investment Objective and Strategy

The Ocean Park Diversified Municipal Bond Model seeks to produce satisfying long-term returns while limiting downside risk.

Returns are created from interest income as well as increases in bond prices. The interest income from municipal bonds is tax-free at the federal (and sometimes state) level, providing a valuable benefit for clients in relatively high income tax brackets. The Model diversifies a client’s account among at least four municipal bond mutual funds, including national and state-specific. Each holding is monitored daily and during declines, a proprietary stop-loss discipline is implemented with the goal of limiting drawdowns. The Model will be fully invested when there are many Buy signals and will, at times, be fully in cash when the universe of municipal bond mutual funds are showing Sell signals.