Volatility Adjusted Adaptive Asset Allocation (VA4)

Strategy Overview

The Milwaukee Company’s Volatility Adjusted Adaptive Asset Allocation (VA4) strategy combines principles proposed in acclaimed theories of “Modern Portfolio Theory” and “Adaptive Asset Allocation” to provide a unique rules-based approach to managing a well-diversified portfolio.  The strategy utilizes an algorithm that adapts the portfolio’s asset allocations to reflect how recent stock market volatility compares to its historical average.  VA4’s algorithm also uses a statistical-based model known as the “Hidden Markov Model” to identify upward or downward trends in the market.

Components

· · ·

  • Suitable for all investment objectives.

  • Preferred strategy for high liquidity needs.

  • Highly flexible allocations.

  • Low to medium volatility.

Model Portfolio Weights

Components

· · ·

  • Broad Asset Class Funds

VA4 utilizes broad asset class Exchange-Traded Funds (ETFs) to provide diversified exposure to significant components of the global market.

 

  • Target Allocations

Target allocations of each broad asset class fund are predetermined in accordance with an investor's risk tolerance and investment goals.

 

  • Volatility Adjusted

Adjusts target allocations when volatility falls outside of “normal” ranges in an effort to control risk.

  • Hidden Markov Model

Probability-based statistical model that helps identify when target allocation should be adjusted to reflect the negative volatility associated with downward trending markets.

 

  • Relative Drift

Allows a limited amount of deviation in actual allocations from target allocations in order to capture the premium associated with upward momentum.

 

The Milwaukee Company℠ is a tradename of Estate Counselors, LLC. The information provided herein is believed to be correct and has been obtained from sources that we consider reliable, but we do not guarantee that this information is accurate or complete.  All expressions of opinion reflect our judgment at the present time, but are subject to change. Nothing found herein is intended to be a substitute for personal investment advice. The investments discussed herein are risky in nature and involve a substantial risk of loss, and we do not in any way warrant or guarantee the results you will experience.

Good Company for Your Investments™

Phone: (262) 238-6980

Fax: (262) 238-6999

414 N Main St, Thiensville, WI 53092, USA

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