Global ETF Strategies
Forefront Advisory’s Global ETF Strategies (GES) provides a low volatility Tactical Asset Allocation solution for investors who have realized that the global investment landscape has evolved. Mr. Daniel Faucetta and Mr. Dan Weiskopf, Portfolio Managers of GES, are pioneers in Exchange Traded Fund (ETFs) portfolio management. They recognized 10 years ago that ETFs would significantly enhance the investor’s ability to manage tactical investment portfolios. In 2004 the managers began developing a proprietary ETF database and launched an exclusive “ETF Only” strategy for their clients. 
 
GES employs tactical asset allocation to make adaptive changes to portfolio construction in a timely manner. Modern Portfolio Theory (MPT), previously the accepted convention, is no longer the default authority for portfolio management. MPT is based on the premise that correlations between asset classes remain low. However, GES takes an active view of risk management; while historical statistical information is helpful in understanding how the markets have traded, it is less useful when deploying capital in markets where information and assets flow at a materially faster pace as they do today. 
 
GES addresses three critical issues:
 
  1. Systemic Risk: GES focuses on understanding systemic risk and applying a proprietary investment process to mitigate risk by actively managing market exposures through the investment cycle. When GES identifies systemic risk as high, decisions are made to reduce exposures to those markets and increase exposure in markets that demonstrate a lower risk profile. This process has provided for low volatility and competitive returns over the market cycle.
 
  1. Diversification: GES portfolio is unconstrained by asset class, market or sectors. Since establishing the strategy in 2004, the number of ETFs listed on the US exchanges have expanded from 170 to over 980. ETFs now represent over 40% of the NYSE daily volume and are the ideal medium to efficiently analyze market and economic change. Unlike most investors in ETFs, GES takes an active and dynamic global investment approach in order to participate in opportunities that rapidly develop due to global changes affecting capital markets.
 
  1. Liquidity & Transparency: Clients have daily access to view GES’s investment strategy and accounts. Unlike investment strategies that seek to achieve similar goals, we require no lockup and transact in securities that are liquid and transparent. Our goal is to provide equity like returns over a market cycle with less volatility by executing a proprietary tactical strategy utilizing ETFs as the exclusive investment vehicle.
 
ETFs are revolutionary investment vehicles which have and will continue to change how investors allocate their resources. As early adopters of ETFs and tactical asset allocation, GES is uniquely positioned as the leading investment manager in the space and will remain on the cutting edge of the ETF revolution. This competitive advantage is what sets GES apart from the crowded field of investment managers.
 
The attached presentation highlights why the GES expertise is so timely today and how tactical asset allocation using ETFs provides benefits not provided by modern portfolio theory or long only managers.