Tactical Allocation Model

By combining the methods of two managers, the Tactical Allocation Model provides a solution to investors, with the objectives of maintaining a component of downside risk protection while participating in equity returns. The Model blends the downside risk management discipline employed by Ocean Park Asset Management (Ocean Park) through the use of the Ocean Park Tactical Bond* Fund with the dynamic equity investment process of Advanced Asset Management Advisors (AAMA), as follows:

Ocean Park uses the same buy-and-sell disciplines to manage holdings that have been in place at the firm for three decades. The Ocean Park Tactical Bond Fund moves between high yield corporate bond (HYCB) funds, long-duration Treasury bond funds, and cash. The Ocean Park Tactical Bond Fund utilizes a trailing stop discipline on each HYCB fund holding and a position is sold when its price declines below its stop level. Those proceeds are re-invested in long-term Treasury Bond funds, if those are in an uptrend, or in cash, until an uptrend in HYCB funds resumes.

AAMA’s management employs a multi-step process that combines stocks of any market capitalization using research, valuation, and stock selection. Relative valuation and market environment views are coupled to develop rankings by relative attractiveness and to determine weighting in the portfolio. This combination of aggressive equity and income-oriented asset classes is designed with the goal of participating in the most attractive areas of the U.S. stock market while seeking to provide some cushion against severe decline.