Collective Investment Trust (CIT)
The iSectors® Post-MPT Growth Allocation Investment Strategy, which began in February 2005, is now available as a Collective Investment Trust (CIT) – CUSIP 45032P101 – exclusively to tax-qualified, employer-sponsored retirement plans, like 401(k) and defined benefit pension plans. A CIT can also be available at any custodian that allows mutual fund investments.
The iSectors Post-MPT Growth Fund catapults Modern Portfolio Theory (MPT) to a new level of effectiveness. The investment model’s strategy uses the principles of MPT to develop and maintain an optimal (along the risk vs. return efficient frontier) portfolio allocation.
The key principles contributing to iSectors Post-MPT Growth Allocation’s risk-adjusted performance success are:
- Allocation among nine low-correlated asset classes reduces risk versus using the higher correlated large, mid and small cap value growth asset classes.
- A more robust mathematical algorithm allows the use of monthly changes in more than a dozen capital market and economic factors to create and maintain optimal asset allocation.
- The use of technology and exchange-traded funds allows iSectors to provide its investment models at a low cost.
- Post-MPT models consider drawdown (any return below zero) as the measure of risk.
Standard deviation, the traditional measure of risk is inappropriate because it considers upside volatility as bad as downside volatility.
Portfolios may be invested up to a maximum of 30% into any one asset class. However, up to 50% of the allocation may be invested in government bonds. The iSectors Post-MPT Growth Allocation utilizes leveraged ETFs to achieve up to 33% portfolio leverage. iSectors does not “borrow money” to achieve leverage. Therefore, iSectors investment models are available for retirement plans, IRAs, and non-profit accounts. Prices, holdings, performance, and tax information are updated daily and can be viewed online. In addition, all iSectors investments provide investors daily liquidity.
Brochures for Advisors
To get started or for more information, contact Scott Jones, iSectors Director of Business Development: 800.869.5184 or firstname.lastname@example.org.