Approaches for a wide range of investor needs, stages or values

For investors, risk isn’t an abstract idea: If their portfolio suffers a major collapse at the wrong moment, it can significantly impact their long-term financial goals and day-to-day life for years to come. That’s why Frontier Asset Management has spent over 20 years designing and refining risk managed investment strategies for a wide range of investor needs, stages or values.

Starting with our Downside First Focus as our foundation, we apply a detailed, hands-on process to craft our strategies.

Reflecting unique investor needs in our innovative strategies

You succeed on the strength of relationships. Especially today, providing investment strategies that suit the individual personality and preferences of each investor is the added level of expertise that helps advisors attract and retain clients. Strategies are further tailored to best serve as core or complementary portfolio elements.

NOTE: Effective Feb 1, 2022, the Globally Diversified Strategies were renamed Core Strategies, Christian Worldview Strategies were renamed Faith-Based Strategies, and Alternative Strategies were renamed Specialty Strategies.

Our Strategic Process

  1. Downside First Focus: Everything we do starts with risk. We set a one-year downside risk target for each strategy and align a target long-term allocation to each risk target by analyzing expected returns, risks, and correlations of 16 asset classes.
  2. Manager Match: We research and select institutional, independent fund managers that we believe will consistently outperform in good and bad markets. We test millions of combinations of selected managers to determine the expected optimal mix.
  3. Dynamic Management: We review each strategy’s manager mix and allocations at least monthly and adjust as needed.

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Notes

Strategy Management Process. Each Frontier strategy consists of carefully selected investment products that are combined in an effort to achieve the Performance Objectives of the strategy. Strategies are managed using a four-step process. First, we establish a long-term asset allocation mix that we call the “Target Long-Term Allocation”. Periodically we adjust the Target Long-Term Allocation based on our changing expectations about the future risk and return characteristics of various asset classes to create the “Target Current Allocation”. Next, we develop an “approved list” of mutual funds that we believe can add value over time. Finally, we test thousands of combinations of mutual funds from our approved list to find the combination that we believe is most likely to perform better than the Target Current Allocation. Over time the investment products in the strategy will change.

Exclusive reliance on the above is not advised. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Assumptions, opinions and estimates are provided for illustrative purposes only. They should not be relied upon as recommendations to buy or sell any securities, commodities, treasuries or financial instruments of any kind.  This material has been prepared for information purposes only and is not intended to provide, and should not be relied on for, accounting, legal, investment or tax advice.

Frontier ’s asset allocation models incorporate expectations for future long-term returns and downside risk. The estimates, including expected returns and downside risk, are calculated monthly by Frontier and will change from month to month depending upon factors, including market movements, over which Frontier has no control. They are only one factor among many considered in Frontier’s investment process. They hypothetical in nature and are not intended as guarantees of future returns and should not be relied upon in making investment decisions. All information provided within refers to our model strategies and does not reflect the trading any actual individual account. The estimates and expectations do not consider the impact of advisory fees or transaction costs. Please see Frontier’s ADV Brochure for details on fees.

The “Downside Risk Target” is the lowest return Frontier would expect to encounter over the next 12-months if all the monthly returns fell within 1.645 deviations (95% statistically confident range) of the expected real return. Real return represents the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.

The “Downside Success Rate vs Downside Risk Target” is the percent of time from the inception of the strategy that the rolling 1-year returns were above our downside risk target. The objective is to be above 95% of the time. It is calculated by taking the composite return, before fees, and determining whether it was above or below that 1-year downside risk target, then taking the average.

Frontier Asset Management is a registered investment adviser with the U.S. Securities and Exchange Commission; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made.  Additional information about Frontier and its investment adviser representatives is available on the SEC’s website at www.adviserinfo.sec.gov.

Frontier provides model strategies to various investment advisory firms and does not manage those models on a discretionary basis. The performance and holdings of model strategies may vary from the strategies managed by Frontier.

Frontier’s ADV Brochure and Form CRS are available directly on our website www.frontierasset.com or by request, at no cost by contacting us at 307.673.5675 or info@frontierasset.com. They include important disclosures and should be read carefully.