Frequently Asked Questions

Our strategy is called Frontier Based Tactical^™, a blend of traditional asset allocation with tactical management. We start with a diversified portfolio and use various quantitative techniques to over and underweight asset classes relative to each other. This is combined with risk on/risk off adjustments that attempt to move the portfolio within a predetermined range when risk is not being compensated in the markets. These dual screen tactical shifts control exposure to each class, and also control the overall risk being taken by the investor.

Many traditional asset management and advisory firms often follow a buy-and-hold approach to investing and adjust the asset allocation infrequently, often based on time rather than need. They also tend to avoid deviating too far from long-term estimates based on current market conditions. This passive approach rides the market wave up and down and can lead to investment decisions driven by emotion, not data or math.

Our difference is that we use proprietary mathematical algorithms and asset allocation models that attempt to ride upward market trends in a relatively passive manner when it makes sense to do so. We use active tactical strategies when our models indicate that conditions are not favorable for taking risk. This approach blends the best attributes of both investment approaches.

Most tactical strategies are not focused on maintaining a diversified asset allocation and as a result, invest in a way that pulls your asset allocation off the efficient frontier. Managers make "calls" that concentrate the portfolio into a small number of asset classes and can significantly increase the amount of risk to the investor. If a manager moves a portfolio into one or two classes, the manager may make the right call and not lose during a specific period, but this is not a good way to assess the true risk of the strategy. You and your advisor need to look at the risks of the potential portfolio that you could own, based on the decision making process of the manager. Current tactical style is very reliant on the next call being correct. That type of management is fine as a trading strategy, but should not be used as an overlay when constructing a portfolio.

Our choice of ETFs and funds is based on our belief that it is more important to manage the exposure to the class than choose an active manager within the class. We are trying to get exposure to each class as efficiently as possible, and add value by adjusting the amount that is allocated to that class. ETF's are a great tool for that purpose, but not all classes are represented well with that vehicle, so there are times when mutual funds still provide the best option.

Premise Capital was founded by its Senior Portfolio Manager Jason Rolence and a team of financial advisors frustrated by a marketplace which forced them to use buy and hold asset managers, unconstrained tactical managers or a disjointed combination of the two through the core/satellite industry model. With more than 70 years of combined experience, the founders strongly believed that there should be an option for investors and their advisors to package the best elements of each approach into a single, seamlessly managed portfolio.

We make trades on an as-needed basis whenever our proprietary algorithms and asset allocation models identify trend changes. This approach means a trade could happen any day, but by no means do we trade every day. Historically, we have made far fewer trades than many other tactical asset management firms because we differentiate trends on the basis of their importance to investors, not traders. Investors who have used other tactical managers may even find us boring.

Yes, because we only use publicly traded vehicles, our portfolios are very liquid. Obviously it takes some time to make trades so it may be a day or two before an account is completely divested. The time period is usually dependent on the platform or method you are using to access our models. We do encourage you to have a longer time horizon to invest in our portfolios, as benefits are seen over full market cycles.

Yes, as with any investment, you can lose money. When we talk about downside protection, it is the attempt to create a structure that doesn't just remain static in down trends.

Unfortunately, no. We work through your financial advisor, who can determine the appropriate risk tolerance and portfolio for you as well as discuss fees and expenses. If you don't have an advisor, we have a network of advisors that can assist you with opening an account. If your advisor doesn't have access to Premise Capital, have them contact us.

While portfolio trades and holdings aren't disseminated directly, if you are an investor, your advisor will have access to the holdings every day, and in most cases, will be aware of transactions as they occur. Our core portfolios use publicly traded ETFs and mutual funds that can be tracked on every major financial website using their ticker symbols.

No, our core portfolios do not use any type of leverage. The ETF choices are made for class exposure, not for placing market bets. We do not use leveraged or short ETFs in our core portfolios.

Yes, both types of accounts are excellent options for our funds and we have specific portfolios designed for the tax attributes of each.