ETF Strategist Opens Collective Fund to DC Plans

Advisers can access the fund through major custodial platforms. The trustee of the fund is Alta Trust Company.

The firm contends that advisers using the new CIF will continue to see the benefits of active asset allocation while also utilizing low-cost index ETFs. The addition of the iSectors Post-MPT Growth Allocation CIF is a natural progression in meeting the needs and demands of not only advisers but also plan sponsors and participants, as well, it says.

The objective of the iSectors Post-MPT Growth Allocation is to achieve investment returns that outperform the S&P 500 stock market index with lower downside risk over a complete market cycle. The portfolio manager allocates and rebalances the portfolio among nine specific, low-correlated asset classes. The mathematical process for the strategy is guided by a series of economic and capital market factors such as unemployment, capacity utilization, money supply, inflation and interest rates.

The portfolio manager may invest up to 30% of the fund into a single asset class at any given time with the exception of government bonds, into which the manager may invest up to 50% of the fund at any given time. In addition, the portfolio manager may invest up to 33% of the fund in leveraged ETFs.

Historical performance of the iSectors Post-MPT Growth Allocation in separately managed accounts can be reviewed at www.isectors.com. A fund brochure is here.