STRATEGY FACT SHEET
AIQ Tactical Global Growth
FOURTH QUARTER 2020
ABOUT US
INVESTMENT OBJECTIVE
Capital appreciation
Adviser Capital is an unincorporated division of Adviser Investments, LLC. We design and
manage portfolio solutions for
the individual investor, including quantitatively driven tactical
strategies, income-focused stock
portfolios and traditional buy-andhold strategies. Our goal is to help
clients blend tactical and fundamental investing to control risk in
their portfolios.
INVESTMENT CATEGORY
Global tactical allocation, aggressive equity
Adviser Investments is an independent, professional wealth
management firm with expertise in
actively managed mutual funds,
ETFs, fixed-income investing,
tactical strategies and financial
planning. We advise more than
3,500 clients with over $6 billion
under our care. Our team focuses
on helping individual investors,
trusts, foundations and institutions
meet their long-term investment
goals.
STRATEGY
u A quantitative, diversified equity strategy seeking long-term capital appreciation through
investments in U.S. sector and industry-specific exchange-traded funds (ETFs) as well as
regional foreign market ETFs
u The strategy can trade on a daily basis and allocates based on our quantitative analysis of
trend quality into the top-ranked sector, industry and foreign stock ETFs
u Strategy may hold a broad U.S. equity ETF when fewer sectors or regions are trending
u Benchmarked against a custom 70/30 blend of the MSCI All Country World Index TR Net and
Bloomberg Barclays U.S. Aggregate Bond Index
u May invest all or a portion of assets in cash under certain market conditions
MAXIMUM ALLOCATIONS
Equities: 100% | Cash/money market: 100%
ASSET ALLOCATION
Stocks
U.S.
Developed International
Emerging Markets
Bonds
Cash
Other
AIQ Tactical
Global Growth
99.7%
81.4%
16.5%
1.7%
0.0%
0.3%
0.0%
Benchmark*
69.8%
39.6%
23.3%
6.8%
27.8%
2.2%
0.3%
Difference
30.0%
41.8%
-6.8%
-5.1%
-27.8%
-1.9%
-0.3%
Source: Morningstar.
SECTOR ALLOCATION
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
AIQ Tactical
Global Growth
18.8%
9.5%
2.7%
0.9%
16.7%
15.1%
16.5%
16.0%
1.6%
1.2%
1.1%
Benchmark*
9.2%
13.0%
7.4%
3.0%
13.4%
11.9%
9.6%
21.9%
5.0%
2.6%
3.0%
Difference
9.5%
-3.5%
-4.6%
-2.1%
3.2%
3.2%
6.8%
-5.9%
-3.3%
-1.4%
-1.9%
Note: Data is percent of overall stock allocation and may not add to 100% due to rounding. Source: Morningstar.
*Benchmark data is a custom 70/30 blend of iShares MSCI ACWI ETF and iShares Core U.S. Aggregate Bond ETF. Data as of
12/31/2020. Note: Data may not add to 100% due to rounding.
www.adviserinvestments.com
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STRATEGY FACT SHEET | AIQ TACTICAL GLOBAL GROWTH
RETURNS
AIQ Tactical Global Growth Gross
AIQ Tactical Global Growth Net
70% MSCI ACWI TR Net / 30% Bloomberg Barclays U.S. Aggregate Bond Index
Q4
11.61%
11.21%
10.48%
YTD
-0.86%
-2.38%
14.99%
1 Year
-0.86%
-2.38%
14.99%
3 Year
4.39%
2.83%
9.23%
5 Year
8.03%
6.54%
10.25%
10 Year
8.81%
7.52%
7.84%
Note: Multi-year returns are annualized. Data as of 12/31/2020.
COMPOSITE
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Total Return
Gross
9.37%
24.67%
7.49%
16.59%
-31.46%
9.33%
20.42%
-5.40%
21.05%
33.45%
14.44%
-9.56%
13.33%
14.10%
-6.74%
23.05%
-0.86%
Total
Return Total Return
Net Net Perf. Fee
8.29%
7.59%
23.45%
19.83%
6.43%
6.13%
15.44%
13.42%
-32.16%
-32.14%
8.25%
7.47%
19.24%
16.39%
-6.35%
-6.34%
19.87%
N/A*
32.15%
N/A*
13.32%
N/A*
-10.47%
N/A*
12.22%
N/A*
12.46%
N/A*
-8.14%
N/A*
21.27%
N/A*
-2.38%
N/A*
Bmark.
Return
12.01%
8.33%
15.84%
10.33%
-29.80%
26.13%
11.36%
-2.43%
12.67%
14.93%
4.72%
-1.33%
6.33%
17.56%
-6.43%
21.13%
14.99%
Comp.
3-yr
St Dev Gross
—
—
15.20%
15.71%
19.34%
22.19%
23.61%
21.66%
17.17%
14.20%
11.00%
12.77%
12.83%
11.26%
12.13%
12.09%
16.58%
Bmark
3-yr St
Dev
—
—
5.89%
6.06%
13.06%
16.29%
17.70%
14.57%
11.81%
9.76%
7.55%
7.78%
7.82%
7.30%
7.37%
7.87%
12.85%
Number
of
Portfolios
8
12
31
41
31
42
38
55
75
137
190
249
199
155
121
119
232
Internal
Total
Dispers.
Composite
Gross Assets ($MM)
5.29%
6.1
0.69%
7.9
1.62%
14.3
2.04%
16.0
0.76%
8.9
2.67%
9.4
0.38%
10.5
0.21%
11.6
0.54%
14.2
0.25%
27.2
0.52%
34.8
1.31%
36.9
0.36%
30.9
0.50%
23.6
1.04%
13.7
0.73%
18.5
0.33%
47.3
Non-fee Paying
Composite
Assets
0.00%
0.00%
0.00%
0.00%
0.00%
8.00%
9.00%
8.10%
8.10%
7.70%
6.30%
5.70%
9.98%
0.00%
0.00%
0.00%
0.00%
Total
Firm
Assets
($MM)
329
343
414
436
327
432
528
589
691
800
894
875
965
920
754
902
1,098
N/A*: Prior to 12/31/2011, portfolios in this composite had a performance fee schedule. The fee charged was the greater of 1.00% per year or 20% of the return above the high-water
mark. The high-water mark was calculated on a quarterly basis.
Adviser Capital (the “Firm”) claims compliance with the Global Investment Performance
Standards (GIPS®) and has prepared and presented this report in compliance with
the GIPS standards. The Firm has been independently verified for the periods 1/1/2004
through 9/30/2017. A firm that claims compliance with the GIPS standards must
establish policies and procedures for complying with all the applicable requirements
of the GIPS standards. Verification provides assurance on whether the firm’s policies
and procedures related to composite, as well as the calculation, presentation, and
distribution of performance, have been designed in compliance with the GIPS standards
and have been implemented on a firm‐wide basis. The AIQ Tactical Global Growth Composite (the “Composite”) has had a performance examination for the periods 1/1/2004
through 9/30/2017 The verification and performance examination reports are available
upon request. GIPS® is a registered trademark of CFA Institute. CFA Institute does not
endorse or promote this organization, nor does it warrant the accuracy or quality of the
content contained herein.
Effective 2/1/2017 the Firm is a division of Adviser Investments, LLC, an SEC registered
investment adviser. It manages a variety of equity, fixed income and balanced accounts for
individuals and institutions. Prior to 1/25/2021, the Firm was named Braver Capital Management; prior to 2/1/2017, it was the asset management division of Braver Wealth Management, LLC. Performance information for periods prior to 2/1/2017 represent results achieved
by the Composite while managed by the Firm at Braver Wealth Management, LLC. As of
7/11/2018, Chief Quantitative Investment Officer Andrew Griesinger left Adviser Investments, LLC and is no longer involved with the Composite’s management. All quantitative
investment models he used will continue to be used by the Composite’s new management
team and investment objectives will remain the same. The team reserves the right to make
changes to the investment models and investment objectives as it sees fit.
Net of fee performance data is presented net of the Firm’s model investment management fee which is equal to the highest management fee charged to clients during the period. For all periods prior to 2/1/2017, the highest fee was 1%. For periods after 2/1/2017,
the highest fee was 1.5%. Net of fee performance data for all periods at the current highest fee of 1.5% is available upon request. Actual fees charged to clients will vary—see the
Fee Schedule below. Net of fee performance data is presented after all trading expenses
and deduction of the highest model investment management fee as described above.
This data does not include any additional charges such as custodial fees and investmentplatform fees that may be charged by a third-party platform, broker-dealer or variable
annuity provider. Any such charges will reduce the client’s net performance accordingly.
For performance data prior to 2019, fees were deducted monthly for purposes of the net
of fee performance calculation. Beginning in 2019, net of fee performance is calculated
based on a quarterly fee deduction.
Gross of fee performance data is presented before the deduction of all fees except
trading expenses.Tax implications are not reflected in the Composite’s performance
data. You are strongly encouraged to consult your tax professional prior to investing in
the Composite.Accounts under management are not insured against loss and accounts
may lose substantial value. Past performance is not indicative of future results. The Fee
Schedule is: 1.5% for accounts between $350,000 and $750,000; 1.25% for accounts between $750,001 and $1,000,000; 1% for accounts between $1,000,001 and $3,000,000;
0.9% for accounts between $3,000,001 and $5,000,000; 0.8% for accounts between
$5,000,001 and $10,000,000; and 0.75% for accounts above $10,000,001.
The Composite uses computer models to allocate assets among the top ranked market
sectors with the greatest momentum. As of 6/1/2020, the Composite invests in both U.S.
and international equities. Prior to 6/1/2020, the Composite invested up to 100% in only
U.S. equities. Prior to 6/1/2020 the Composite was named Tactical Equity Sector Rotation
and prior to 9/30/2011, it was called Sector Rotation.
The benchmark is a custom blend of 70% MSCI ACWI TR Net and 30% Bloomberg Barclays U.S. Aggregate Bond Index rebalanced quarterly. Prior to 6/1/2020 the benchmark
was the S&P 500 Index. All benchmark returns prior to this date have been updated to
reflect the current benchmark. The benchmark was changed to reflect the manager’s
adjustment to the strategy’s allocation of assets. The custom benchmark blend data
source is Orion and is for comparative purposes only; the Composite does not seek to
replicate the benchmark’s performance. Investors cannot invest directly in an index. Sector rotation strategies involve risks of concentration and is not as widely diversified relative
to the index.
All information contained herein comes from what we consider accurate sources as of the
date of publication, but such accuracy is not guaranteed. The Composite creation date is
1/1/2009 and its inception date is 1/1/2004. A complete list of the composite descriptions
is available upon request.
Important changes to composite management. Effective 2/28/2014, Composite began
investing in exchange-traded funds (ETFs) as investment options; prior to this, it primarily
invested in mutual funds. Also, the Composite’s sector ranking process and models were
modified with the goal of reducing volatility and drawdown while making the return stream
smoother. Prior to 9/30/2016, cash was a potential investment and ranked with the sectors and industries. The Composite could be 100% cash. Effective 9/30/2016, cash was
removed as an investment option and it will invest in equity ETFs. Prior to 7/1/2017, it held
4 equity ETFs at a given time. Effective 7/1/2017, it could hold 8 industry or sector equity
ETFs at a given time. Effective 6/1/2019, it can now trade weekly (prior to this date, trades
were made on a monthly basis), holds up to 6 industry or sector equity ETFs at a given
time and may also hold up to 100% cash or broad U.S. equity ETF at any given time.
Effective 6/1/2020, it can now trade daily, can now hold up to 8 equity ETFs, and may now
also hold international ETFs. All changes are expected (but not guaranteed) to improve
diversification, reduce volatility, downside capture and turnover, but may also limit upside
capture relative to the Composite’s historical results.
Valuations are computed and performance reported in U.S. dollars. All returns include
the reinvestment of income. Internal dispersion is calculated using the net of feeequalweighted standard deviation of all accounts that were included in the Composite for the
entire year. The Composite 3-year standard deviation and internal dispersion are both
calculated using gross of fee returns.
Performance of accounts managed under the Composite may vary based on a number
of factors, including but not limited to, timing of cash flows and transactions, account size,
prevailing market conditions at time of initial investment into the Composite, availability of
specific investment options and the relative performance of substitute investment options.
Not all accounts within the Composite hold the same securities.
Prior to 2/13/2020, Total Firm Assets for 2018 were incorrectly reported as $849 million.
Policies for valuing accounts, calculating performance, and preparing GIPS Reports are
available upon request. Please call Adviser Investments, LLC at 800-492-6868.
www.adviserinvestments.com
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800-492-6868