Get documents about "MFS_TAM
Document Sample
QA Tactical All Market SM
Strategy Objective: The strategy seeks superior risk-adjusted
investment returns (including positive returns every trailing
twelve months), with a low correlation to the returns of
traditional asset classes, by tactically rotating within and
among a variety of traditional and alternative asset classes
Portfolio Holdings: Fifteen exchange-traded funds (ETFs) within
varying combinations of long equities (up to 5 positions), short
Long Equities, Short Equities,
equities (up to 5 positions), fixed income (up to 4 positions),
Fixed Income, Commodities, Currencies
commodities (up to 4 positions), currencies (up to 4 positions) and/or Real Estate
and/or real estate (up to 4 positions)
Investment Performance through September 30, 2011
ANNUAL ANNUALIZED
SINCE INCEPTION
2009 2010 2011 YTD TRAILING 1 YEAR JANUARY 1, 2009
Net 6.77% 13.85% 1.61% 10.72% 7.98%
Benchmark -4.08 1.11 Not Available Not Available Not Available
I N F O R M AT IO N AL I N D I CES
S&P 500 Index 26.46% 15.06% -8.68% 1.14% 10.89%
MSCI EAFE Index 31.78 7.73 -14.98 -9.36 7.08
Barclays Capital U.S. Aggregate Bond Index 5.93 6.54 6.65 5.26 6.97
U.S. Treasury 3-Month Treasury Bill-Constant Maturity Rate 0.16 0.13 0.08 0.12 0.14
Benchmark: HFRX Quantitative Directional Index
Statistical Analysis through September 30, 2011 (net of fees)
QA TACTICAL S&P 500 MSCI EAFE BARCLAYS CAPITAL U.S. U.S. TREASURY 3-MONTH TREASURY
ALL MARKET INDEX INDEX AGGREGATE BOND INDEX BILL-CONSTANT MATURITY RATE
Standard Deviation 12.05% 18.89% 22.88% 2.89% 0.04%
Correlation Not Applicable 0.42 0.40 -0.21 0.03
Please see the disclosures on the next page
10225 Yellow Circle Drive, Suite 100 · Minnetonka, MN 55343
phone 952-944-3206 · fax 952-944-5789 · www.QAglobal.net
Glossary of Terms
Correlation: A measure of a portfolio’s movement in relation to other tends to increase. A larger negative number indicates a
another. A positive correlation means that as one portfolio stronger tendency to move in opposite directions. It is important
increases the other tends to increase as well. A larger positive to note that correlation does not imply causation.
number indicates a stronger tendency to behave the same. A Standard Deviation: A measure of volatility calculated using
negative correlation means that as one portfolio decreases the historical variations from the mean return of a portfolio.
DISCLOSURES
The investment performance information included in this fact sheet performance of the specific sector or group of industries on which they
has been prepared by Quantitative Advantage, LLC (QA), is for are based; international investments, which are subject to additional
informational purposes only and does not constitute investment risks, such as currency fluctuation, confiscatory policy, political
advice. Upon request, QA will provide you with additional information instability, and potential illiquidity, including investing in emerging
about QA, including QA’s investment programs, strategies and fees. markets, which may accentuate these risks; commodity funds, which
Please review QA’s Form ADV Brochure carefully before you invest. may be subject to volatility in the value of futures contracts and
other instruments relating to underlying commodities, together with
The performance information represents the net composite fluctuations in the prices of the underlying commodities themselves,
performance of client accounts in the QA Tactical All Market as well as leverage, liquidity, counterparty and credit risks; currency
investment strategy. It reflects the re-investment of dividends and funds, which are subject to similar risks as international investments,
other earnings and the deduction of investment management fees including fluctuations in exchange rates; real estate funds, which
of QA, investment advisory fees of third party investment advisors (if are subject to the risks of changing economic conditions, declines in
applicable) and all execution charges incurred by client accounts. the value of real estate, increasing vacancies or declining rents, and
The client accounts included in the composite prior to April 2009 liquidity, counterparty and credit risks; and “inverse” funds, which
consist primarily of QA in-house accounts, which are not subject to utilize derivatives and may engage in short selling in order to emulate
QA’s investment management fees or third party investment advisory the inverse performance of a particular index, and are subject to
fees. Other clients would have been subject to QA’s investment the risks associated with derivatives, including leverage, liquidity,
management fees (typically 0.50% per annum) and, in most cases, counterparty and credit risks. This strategy may also invest in fixed
third party investment advisory fees, which would have resulted in income investments, which are subject to various risks, including
lower net investment returns. changes in interest rates, credit quality, market valuations, liquidity,
Past performance of QA’s investment strategies is no guarantee prepayments, corporate events, tax ramifications and other risks.
of future performance, and QA’s strategies, like most investment Specifically, bonds are subject to market and interest rate risk if sold
strategies, involve the risk of loss. You should not assume that prior to maturity. Bond values and yields will decline as interest rates
future performance results will be profitable or equal to QA’s past rise and bonds are subject to availability and change in price.
performance. The use of QA’s strategies may be appropriate for Although index funds (which QA uses to implement its investment
certain investors as part of their overall investment strategy. However, strategies) are designed to provide investment results that generally
the use of investment strategies is not a substitute for personalized correspond to the price and yield performance of their respective
investment advice and investors should consult with their Advisor underlying indices, the funds may not be able to exactly replicate
before implementing any strategy. the performance of the indices because of fund expenses and other
QA’s investment strategies are implemented using exchange-traded factors. This is especially the case with respect to inverse funds,
funds (ETFs), which are subject to risks similar to those of other which seek to deliver the opposite of the performance of the indexes
publicly-traded shares, including loss of principal, price volatility, they track, where the divergence may be significantly greater than
competitive industry pressures, global political and economic with traditional index funds. Inverse funds pursue their investment
developments, possible trading halts and index tracking error. ETFs objectives by investing in various financial instruments (including
with concentrated holdings will be subject to greater volatility than derivatives), many of which involve the use of leverage, and these
those that invest more broadly. In all cases, investment returns will investment strategies increase the risk of divergence. In addition,
fluctuate and are subject to market volatility, so that a client’s shares, inverse funds seek to track the inverse of their indexes only on a
when sold, may be worth more or less than the original cost. Various daily basis, which means significant divergence can occur over time,
types of investments involve different kinds of risk, and there is no especially when the effect of compounding is taken into account.
assurance that any investment strategy will be profitable. The QA Comparison of QA’s composite returns to the returns of one or more
Tactical All Market strategy may make investments in a variety of specific indices is for illustrative purposes only and does not imply that
asset classes which are subject to potentially greater risks than other any composite will have investments which reflect the composition of
asset categories. In addition, some ETFs in which the strategy may the indices. QA’s investment strategies are less diversified than these
invest may have limited liquidity. QA’s investment strategies involve indices, which may increase both the volatility and risk of client
a high level of portfolio turnover, which may increase transaction accounts. An investor cannot invest directly in an index. An index’s
costs, lower returns and have negative tax consequences in taxable performance does not reflect the deduction of transaction costs,
accounts. management fees or other costs which would reduce returns.
Although many ETFs are registered under the Investment Company Hedge Fund Research, Inc. provides the monthly return of the
Act like traditional mutual funds, some ETFs, in particular those that HFRX Quantitative Directional Index on a preliminary basis by
invest in commodities, are not registered as investment companies approximately the middle of the following month, and on a final
under the Investment Company Act. These types of ETFs may be basis by approximately the end of the month, at which time it makes
formed as limited partnerships or grantor trusts and may have unique any required revisions. You may obtain the most current information
tax consequences. regarding the HFRX Quantitative Directional Index at
Asset classes in which the QA Tactical All Market strategy may invest www.hedgefundresearch.com.
include: small-cap investments, which are subject to greater volatility For a complete definition of the other indices referred to in this
than those in other asset categories; sector funds, which may involve fact sheet, please refer to the sponsor or provider websites at
a greater degree of risk than investments in other funds with greater www.standardandpoors.com, www.mscibarra.com, www.barcap.com
diversification and which may also be adversely affected by the and www.federalreserve.gov.
10225 Yellow Circle Drive, Suite 100 · Minnetonka, MN 55343
2119 - 0911 phone 952-944-3206 · fax 952-944-5789 · www.QAglobal.net
