Tactical Asset Allocation

Bond Funds | Stock Funds | Bond and Stock Funds

Spectrum Financial's original investment service is our Tactical Asset Allocation Strategy. The Spectrum Client Services Team works with clients to assess their risk tolerance and develop a portfolio - diversified among the investment strategies and fund options - that fits their investment objectives and risk profile.

Large, quick profits are not the primary goal of these investment strategies. As our client newsletter has stated since its first issue, "Steady plodding brings prosperity; hasty speculation brings poverty." (Proverbs 21:5, LB). While there can be no guarantee that the resulting portfolio will be profitable, the investment strategies used by Spectrum are time-tested and have historically produced above market returns with below market risk.

Tactical Asset Allocation uses several different Spectrum strategies to actively manage client portfolios invested in mutual funds. These strategies use a variety of indicators to signal favorable or unfavorable market conditions for different asset classes. In response to the different strategies developed by Spectrum over the last 20+ years, client assets are moved in part or in whole between the underlying bond or equity fund and a money market or cash position to:

1. reduce the risk of loss when a market downturn is signaled and
2. position the client's assets to benefit from rising markets.

An individual client's account may be held at a fund company, trust company, brokerage firm, or insurance company or a combination of these investment companies depending upon the suitability of the funds and policies offered by the company. Spectrum monitors the available funds at the custodian suitable for the strategy. Different funds are frequently used for added diversification and to work within the vehicle's portfolio managers' guidelines for trading in some strategies.

Spectrum's Investment Strategies

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

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Behind Our Strategies

Spectrum Financial's investment strategies are based on trend following, momentum, relative strength and seasonal models.

Trend following strategies seek to identify changes in the market's direction soon after the change occurs through a series of technical indicators.

Momentum models seek to identify asset classes that are gaining appreciation faster than other segments of the market with the objective of investing in the fastest growing asset classes.

Relative strength strategies measure how an asset class has performed relative to the overall market and other asset classes.

Seasonal strategies are based on determining specific days of the week, intervals of the month and/or times of the year that are favorable to a rise in the financial markets or specific asset classes.

Regardless of how well an indicator or model has worked in the past, there will be periods of underperformance. This is why we maintain that a well managed portfolio should not only include asset diversification, but also diversification of investment strategies.