Frontier Named 2015 Strategist of the Year
July 26, 2015
Read MoreCarefully selected funds,
Dynamically Managed
The goal of our Alternative Strategies is to generate the highest return for the target level of risk associated with that strategy.
- No asset class constraints other than those needed to stay within risk targets
- May be broadly diversified or more highly concentrated
- Asset allocations adjusted to focus on new or better opportunities
- “Benchmark-free” process: not managed to track benchmarks
Strategy Highlights
Actively managed to focus on asset classes that we expect to have the best future risk-to-return characteristics. These strategies are managed without asset class constraints so their asset allocations may shift from broadly diversified to more highly concentrated.
We seek to achieve our objective through:
- Dynamic asset allocation
- Top-quality mutual fund selection
- Skillful combination of funds
- Ongoing strategy management
Alternative Strategies
Alternative Strategies
Short-term Reserve
Absolute Return
Income
Absolute Return Plus
Focused Opportunities
Short-term Reserve
Absolute Return
Income
Absolute Return Plus
Focused Opportunities
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- US Equity
- International Equity
- Real Assets
- Alternatives
- Fixed Income
Short-term Reserve
The Short-Term Reserve strategy is a diversified short-term fixed-income strategy that seeks to generate return while adhering to a strict risk level. This conservative strategy is typically 90% or more weighted towards funds that employ fixed income and alternative strategies. This strategy may hold small allocations to equity mutual funds. It is not insured and the value of the mutual funds in the strategy will fluctuate over time and, at any point in time, may be more or less than the amount originally invested.
Performance Objectives
- Long-term return expectation 2.6%
- Expected range of returns 0% to 8%
- Benchmark BarCap 1-5 Yr Treasury
*See Notes for more information about the performance objectives.
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- US Equity
- International Equity
- Real Assets
- Alternatives
- Fixed Income
Absolute Return
The Absolute Return strategy is an unconstrained global allocation strategy that seeks to maximize expected return for the stated risk level. The strategy is based on the Capital Preservation strategy, but can invest in any combination of asset classes provided that the strategy target risk level is not exceeded. Frontier seeks to provide consistent returns through asset allocation adjustments, mutual fund selection and ongoing management.
Performance Objectives
- Long-term return expectation 3.7%
- Expected range of returns -2% to +13%
- Benchmark HFRX Abs Return Index
*See Notes for more information about the performance objectives.
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- US Equity
- International Equity
- Real Assets
- Alternatives
- Fixed Income
Income
The Income strategy is a global asset allocation strategy that seeks to maximize expected return for the stated risk level, and to provide current income. The strategy normally invests between 20% to 40% in equity mutual funds, with the remaining assets invest in fixed income and alternative mutual funds. Frontier seeks to add value through asset allocation adjustments, mutual fund selection and ongoing management.
Performance Objectives
- Long-term return expectation 4.8%
- Expected range of returns -5% to +16%
- Benchmark Conservative Bench
*See Notes for more information about the performance objectives.
- Wilshire 5000 15%
- International Index 5%
- Bloomberg Commodity 15%
- HFRX Global HF 25%
- Barclays US Agg 40%
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- US Equity
- International Equity
- Real Assets
- Alternatives
- Fixed Income
Absolute Return Plus
The Absolute Return Plus strategy is an unconstrained global asset allocation strategy that seeks to maximize expected return for the stated risk level. The strategy is based on the Balanced strategy, but can invest in any combination of asset classes provided that the strategy target risk level is not exceeded. Frontier seeks to provide consistent returns through asset allocation adjustments, mutual fund selection and ongoing management.
Performance Objectives
- Long-term return expectation 6.3%
- Expected range of returns -10% to +26%
- Benchmark HFRX Global HF Index
*See Notes for more information about the performance objectives.
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- US Equity
- International Equity
- Real Assets
- Alternatives
- Fixed Income
Focused Opportunities
The Focused Opportunities strategy is an unconstrained global allocation strategy that seeks to maximize expected return for the stated risk level. The strategy is based on the Long-Term Growth strategy, but can invest in any combination of assets provided the strategy target risk level is not exceeded. The strategy typically will invest in 60% to 90% equity mutual funds, but can be diversified or focused. This strategy is Frontier’s most flexible offering.
Performance Objectives
- Long-term return expectation 7.1%
- Expected range of returns -20% to +44%
- Benchmark S&P 500
*See Notes for more information about the performance objectives.
Alternative Strategies Performance Objectives Comparison*
- Strategy
- Long-Term
Return Expectation - Expected Range of
Annual Returns
- Focused Opportunities
- 7.1%
- -20% to +44%
- Absolute Return Plus
- 6.3%
- -10% to +26%
- Income
- 4.8%
- -5% to +16%
- Absolute Return
- 3.7%
- -2% to +13%
- Short-Term Reserve
- 2.6%
- 0% to 8%
*These objectives represent hypothetical expected returns. They are shown for illustrative
purposes only and it should not be assumed actual results will match the objectives shown.
See Notes for more information about the performance objectives.