7Twelve Balanced Portfolio Clas (0P0000U79J)

Overview

The adviser's core investment strategy revolves around the 7Twelve™ asset allocation model, designed to diversify investments across a broad spectrum of asset classes and subcategories to achieve the fund's objectives. Unlike traditional approaches that may focus heavily on individual stock and bond selections, this model emphasizes allocation among seven major asset classes divided into twelve distinct subcategories. By leveraging a mix of exchange-traded funds (ETFs) and mutual funds, the adviser aims to tap into the potential of each asset subcategory without directly investing in individual securities. This method ensures substantial investment in both equity securities and bonds, with a minimum of 25% of the fund's assets dedicated to each. This strategic allocation aims to balance risk while pursuing consistent returns for investors.

Products and Services

• ETFs and Mutual Funds

  Rather than selecting individual stocks and bonds, the adviser's primary vehicle for implementing the 7Twelve™ asset allocation model involves ETFs and mutual funds. These funds are chosen based on their primary focus on securities that fall within one of the twelve subcategories identified in the 7Twelve™ Model. This approach allows for a diversified investment portfolio that taps into various market sectors and asset classes, spreading risk and potential for return across different investment vehicles.

• Equity Securities Investment

  In line with the adviser's strategic asset allocation, at least 25% of the fund's assets are invested in equity securities. This commitment ensures that a quarter of the investment portfolio is dedicated to stocks and similar securities, providing growth potential through capital gains. This exposure to the equity markets is vital for the long-term growth of the fund, balanced by the fund's investments in other asset classes to manage overall volatility.

• Bond Investment

  Similarly, the strategy mandates a minimum investment of 25% of the fund's assets in bonds. This allocation provides investors with exposure to fixed income securities, offering a buffer against the volatility often associated with equities. Bonds contribute to the income generation and stability of the overall portfolio, playing a crucial role in achieving the fund's objective of a balanced and diversified asset allocation.