Risk-managed strategies to complete a total portfolio
Frontier’s Specialty Strategies are downside risk-managed investment strategies designed to complete an investor’s total portfolio. If you’re looking for unconstrained strategies that focus on long-term consistent returns while minimizing downside risk, and aren’t concerned about asset class allocations, consider these Frontier Strategies.
A range of Specialty Strategies
Each strategy has an approximate one-year downside risk target (ranging from -2% to -25%) and a target long-term allocation* shown in the pie charts below. Investors can select the strategy that best fits their needs and risk tolerance level.
Investment ObjectiveSeeks to preserve capital.
Based on Capital Preservation strategy, but can invest in any combination of asset classes. Could be used for short-term obligations due within the next 1-3 years, as an alternative to short-term bonds, or for those assets investors do not want or need to be fully exposed to capital market price changes.
Absolute Return Plus
Investment ObjectiveSeeks to provide capital appreciation with moderate volatility.
Based on the Balanced strategy, but can invest in any combination of asset classes. Could be used to fill an allocation to alternative assets, obligations due within the next 5-10 years, or investors seeking to grow the value of their assets who also prioritize expected downside risk and consistency of returns.
Investment ObjectiveSeeks to provide long-term capital appreciation with moderate volatility.
Based on the Long-Term Growth strategy but can invest in any combination of asset classes. Can hold up to 100% equity exposure but is actively managed to prioritize downside risk and to seek to improve consistency of returns. Could be used to fill an allocation to equity-oriented alternative asset.
* Downside risk targets and target long-term allocations calculated as of December 31, 2022.
Specialty Strategy key features
The Specialty Strategies offered by Frontier Asset Management may be used to complement core strategies of an investor’s portfolio.
- Designed to maximize return while managing downside risk
- Composed of funds of carefully researched independent managers
- Dynamically managed to seek to achieve consistent performance in ever-changing markets
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Strategy Management Process. Each Frontier strategy consists of carefully selected investment products that are combined in an effort to achieve the Investment Objective of the strategy. Strategies are managed using the following 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 investment products that we believe can add value over time. Finally, we test thousands of combinations of investment products 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 most likely change.
The “Downside Risk Target” is a financial risk measure that represents the approximate one-year loss potential an investor is willing to assume. It is designed to help investors choose their desired strategy based on their individual risk tolerance. It is the starting point for the design of each Frontier strategy. The downside risk target is for informational purposes only. There is no guarantee the downside risk target will be achieved. The downside risk target does not represent the performance of any individual account and should not be assumed to be consistent across all portfolios in a Frontier strategy. There are frequently material differences between potential loss levels and actual performance. The downside risk target does not consider the impact of trading, nor does it contemplate advisory fees. It should not be assumed that an investor will experience a consistent potential loss over any period of time or on a long-term basis. No investment decision should be made solely on the downside risk target associated with any Frontier Strategy.
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.
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 firstname.lastname@example.org. They include important disclosures and should be read carefully.