ARS Tactical Asset Allocation Balanced Strategy

The Tactical Asset Allocation Balanced Strategy draws elements from our Core Equity, All Cap and Core Fixed Income strategies to generate returns while reducing volatility and downside risk:

• Our equity approach is to buy the most assets, cash flow and earnings for the fewest dollars in companies that stand to be the beneficiaries of global capital flows.
• Our fixed income approach primarily focuses on preservation of principal with secondary consideration of income generation.

Allocation Strategy

We employ a tactical asset allocation strategy, where we determine the asset mix based on our assessment of the most opportunistic risk/reward characteristics among equity, fixed income and cash.

Portfolio Construction

• We combine a top-down view with fundamental analysis that evaluates credits across securities and identifies businesses poised to benefit from secular themes with the greatest margin-of-safety in their valuations.
• With the primary goal of maintaining and building purchasing power over time, this approach can lead to industry and sector allocations that differ from that of market indices.