Tactical Asset Allocation
Utilize fundamental and quantitative tools that have been refined and expanded over 30+ years of managing tactical asset allocation (TAA) portfolios.
Estimated Return Statistics
Major Trend Index
Our Major Trend Index is utilized to set the portfolio’s net equity exposure (20%-80% range). When the MTI composite reading (ratio of positive to negative points from five categories of factors) is above 1.05, it is deemed “Positive” toward stocks, while a ratio below 0.95 is considered “Negative.” Readings between 0.95-1.05 are neutral. This index is designed to recognize major market trends combining over 130 individual components. The five factor categories include:
- INTRINSIC VALUE
- TECHNICAL MARKET
- ECONOMIC/INTEREST RATES/INFLATION
Monitor historical and relative valuation using fundamental metrics such as free cash flow yield, normalized earnings yield, and intrinsic value.
Measure fundamental growth rates including sales growth, EPS growth, and earnings revisions.
Evaluate technical strength or weakness using proprietary Chart Score algorithm.
Identify market leadership trends using proprietary Reverse-Adjusted Momentum, VLT relative strength, and VLT momentum models.
Fixed Income Disciplines
Risk Allocation Model
Evaluate the relative attractiveness of Treasuries versus Credits.
Inflation Allocation Model
Assess the relative attractiveness of nominal vs. inflation-protected assets.
Credit Allocation Model
Measure the risk/return trade-offs across credit ratings.
Consider currency’s impact on the risk and return of foreign bonds.
The Leuthold Group was founded in 1981 as an independent investment research firm. In 1987, the firm registered an RIA subsidiary with the Securities and Exchange Commission and began to direct investment portfolios based on the financial analysis of their research. Historical performance reflected is a composite of all fully discretionary, fee-paying institutional and private accounts, managed as Leuthold Global Tactical ETF Portfolio accounts. “Gross” performance results reflect the deduction of all transaction costs, but do not include custodial, investment advisory fees or other expenses. “Net” performance is an estimate that reflects the deduction of all transaction costs and investment advisory fees paid. For periods in the current quarter, net estimates are calculated based upon the highest investment advisory fee paid. The current month’s gross performance is an estimate.
- MSCI ACWI is designed to measure global equity market performance of Developed and Emerging Markets. Performance is net of foreign tax withholding.
- Bloomberg Barclays U.S. Aggregate provides a broad-based measure of U.S. investment grade fixed-rate debt markets.
- MSCI ACWI and Bloomberg Barclays U.S. Aggregate are indexes and cannot be invested in directly.
Returns presented for Leuthold Global Tactical ETF Portfolio assume reinvestment of all dividends, interest, and realized gains. Past performance should not be considered predictive of future performance. As with any investment, there can be no assurance that the investment objective will be achieved or that an investor will not lose a portion or all of his investment. The Leuthold Global Tactical ETF Portfolio composite was established on December 31, 2016.