Global Tactical Asset Allocation

Based on our proprietary framework, the Berunda Global Tactical Asset Allocation (GTAA) strategy attempts to rebalance client portfolios across US equity sectors, European and Emerging Market equities and other global asset classes such as bonds, gold, agricultural commodities and the US Dollar index on a monthly basis or if the bull-bear market probabilities change significantly.  The strategy also takes into account certain tax considerations for investors and may therefore be considered less tactical than a typical Tactical Asset Allocation strategy. The Berunda-GTAA strategy is primarily a long portfolio strategy, with limited shorting (10-20% of portfolio) to minimize downside risk. Actual long/short ratios depend on our outlook of the macroeconomic environment and the probability of a bear market.

The table below shows the actual performance of the GTAA strategy since significant AUM on a 2023, 2022, 2021 annual basis (as of  year-end 2023) and also shows the actual performance of the GTAA strategy since significant AUM on a monthly basis (as of 12/31/2023):

The chart below shows the hypothetical fund performance side by side with major benchmarks from March 1, 2004 to December 31, 2023. Major benchmarks include S&P 500 Total Return (SP500TR), MSCI All Country World Index (ACWI) and the Credit Suisse Hedge Fund Index (CSHFIND). All benchmark and fund returns are in US Dollars. Performance assumptions include margin and borrowing rates in excess of the risk-free rate by 150 basis points, trading commissions of 0.45% or 45 basis points on all trades, slippage in time of one-day trading for friction and no explicit currency hedging.

Disclosure:  Backtested performance is NOT an indicator of future actual results. The results reflect the performance of a strategy not historically offered to investors and do NOT represent returns that any investor actually attained. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. General assumptions include: That the fund would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Changes in these assumptions may have a material impact on the backtested returns presented. No representations and warranties are made as to the reasonableness of the assumptions. This information is provided for illustrative purposes only. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Actual performance may differ significantly from backtested performance. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable.  No cash balance or cash flow is included in the calculation.