Pinnacle Tactical Portfolios
Pinnacle Tactical Portfolios consist of three separate and distinct segments. A client’s individual goals, objectives, and risk tolerance are all taken into consideration when determining an appropriate asset allocation among the segments.
The equity segment utilizes a combination of mutual funds, Exchange Traded Funds (ETF’s), and individual stocks. These investments are selected through the use of fundamental analysis. Mutual funds held in this segment hold stocks with a bias towards “value”. ETF's provide a cost effective way to invest in international equities and in specific domestic sectors. A technical analysis software monitors each of the holdings on an ongoing basis to help identify advantageous entry and exit points. If the system indicates that a particular holding is subject to an increased probability for a price decline, then the position is liquidated and the proceeds are moved to cash. Though the objective of this segment is to grow client assets by participating in equity bull markets, our clients take great comfort in knowing that a sell discipline is in place to help protect against capital loss in times of severe market decline.
Fixed Income Segment:
The fixed income segment is included in our tactical portfolios to provide stability. It is comprised of Mutual Funds and ETF's that invest primarily in bonds. The segment is managed with an emphasis on total return and investments include domestic or foreign securities of corporate and government debt.
Alternative and Global Allocation Segment:
This segment contains several broadly diversified actively managed mutual funds. Unlike all other mutual fund options, these funds are allowed to own a wide variety of asset classes; cash, stocks, bonds, commodities or other alternative investments. In addition, the portfolio managers are afforded greater leniency in the amount of cash that they may hold. Funds in this segment have established histories of consistent performance, due in large part by the managers’ ability to minimize downside risk through asset allocation adjustments during times of heightened volatility or market decline.
* At Pinnacle, we use a program called Riskalyze to obtain an “objective”, quantifiable measurement of a client’s risk tolerance. In addition, the software computes corresponding risk measurement scores for each of our investment portfolios. Marrying the two concepts together provides our clients with the peace of mind in knowing that the investments we propose will not subject them to unwanted levels of risk.