The PDA Allocation Models aim to provide diversification across major asset classes by investing in actively managed mutual funds or ETFs that are believed to be best in class. Tactical allocations are made to protect capital when equities markets are posed for a downturn or there is a spike in volatility. Portfolio Design Advisors offer four sets of asset allocation models based on an advisor's preferences.
The Full Mutual Fund Allocation Models
Utilize mutual funds that are managed by some of the most successful portfolio managers relative to peers in their respective asset class. The typical model invests in approximately twelve mutual funds that invest in all the major asset classes as well as some non-traditional asset classes like Emerging Markets, Fixed Income and Alternatives.
The ETF Allocation Models
Utilize Vanguard’s diversified ETFs to gain broad market exposure while allocating to specialized ETFs such as a preferred stock ETF and master limited partnership ETF to add alpha. The typical model invests in approximately ten ETFs.
The Lite Mutual Fund Allocation Models
Utilize actively managed mutual funds that offer broad market diversification. Relative to the Full Mutual Fund Allocation Models these models have less exposure to non-traditional asset classes like Emerging Markets Fixed Income and Alternatives but model costs and account minimums are lower. The typical model invests in approximately six mutual funds.
The Enhanced Alternative Strategy Model
Seeks long term growth of capital by investing in "alternative asset classes" such as merger arbitrage, managed futures, MLPs, commodities, market neutral, long/short equity, foreign currency trading strategies, etc. These alternative asset categories generally have a low correlation with the broad U.S. stock and bond markets.
Portfolio Design Advisors
9055 East Mineral Circle, Suite 200 Centennial, CO 80112