SecurityMaxx

SecurityMaxx Strategies

Bonds | Sector | Domestic Equity | International Equity

SecurityMaxx Domestic Equity (Risk Rating 2-4)

Spectrum currently offers four Strategies that utilize domestic stock mutual funds. The Strategies vary in what type of domestic stock fund is used and what investment tools and techniques are used to generate buy and sell signals. All of these Strategies move 100% into a selected domestic stock fund when the respective Strategy is invested on a buy signal. Each Strategy moves 100% to the safety of a money market fund when the respective signal is out of the market during a sell signal.

Market Phase Plus (Risk Rating 2 / Minimum Account $50,000)
The Market Phase Plus strategy is a longer term strategy that attempts to capture major market uptrends and sidestep major downtrends. This strategy will invest in a cash position during periods that a buy and hold strategy may realize large, longer term drawdowns or losses.

Core Focus (Risk Rating 3 / Minimum Account $100,000)
The Core Focus Strategy is our most tax efficient mutual fund portfolio. 50% of the portfolio invests in a number of focused mutual funds with the intent of holding for 12 months or longer thus generating gains at the lower (long term) capital gains tax rate. These funds tend to earn higher annual returns without substantially increasing market risk and volatility. The remaining 50% of the portfolio not invested in focused funds is invested in managed and index stock and bond funds that are selected for their low volatility. This Strategy may use short funds to help protect the portfolio's holdings against a market decline. This Strategy is offered only at specific custodians and is sub-managed by Johnston Grey, Inc.

Equity Matrix (Risk Rating 3.25 / Minimum Account $50,000)
The Equity Matrix Strategy is rooted in a methodology that attempts to leverage the benefits of an upward trending market and sidestep most of the downward trending periods. A component within the strategy recognizes bullish and bearish extremes, either allowing profits to be taken during over-exuberant rallies or positions to be initiated during the establishment of perceived market lows.

ST Modified (Risk Rating 4 / Minimum Account $50,000)
The ST Modified Strategy makes exchanges between a domestic stock fund or funds and a money market fund. This is a price based, trend following Strategy designed to participate in intermediate market uptrends while attempting to keep trade frequency and whipsaws to a minimum. Whipsaws are short term trades that last only days and are generally the result of brief periods of high market volatility.

Spectrum Financial Inc.
2940 N. Lynnhaven Road | Suite 200 | Virginia Beach, Virginia 23452
Tel: 757-463-7600

Diversification is the Key to Reducing Investment Risk.

Spectrum's risk rating.

There are two ways of reducing investment risk. The first is to invest in low risk/low reward investments such as money funds and short-term bond funds. The second way, and the way Spectrum prefers, is to diversify among several investment methods which all have the ability to produce attractive returns, but are unrelated to each other in terms of what drives performance. By selectively combining Strategies, portfolios can be created for each client based on their individual investment objectives and risk tolerance.

Each Spectrum strategy is risk rated on a scale of 1 to 5, where 1 represents little risk, such as investing in money funds, and 5 represents the risk comparable to investing in a buy-and-hold, aggressive growth strategy. By allocating assets within these risk parameters, clients are able to build risk adjusted portfolios designed to match their tolerance of potential losses and investment objective.