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Proactive Asset Allocation Strategy (PAAS) Performance


Many investors believe that proactive investing is too complicated. In most cases, people who believe this just don’t know where to get high-quality, accurate information. Proactive investing is not rocket science and doesn’t require you to dedicate endless hours on research. All you need is a sound framework to help you make proactive changes at the appropriate times and the ability to reduce emotional influences. Our Proactive Asset Allocation Strategy (PAAS) provides you a solid framework to be a highly confident and successful investor.


PAAS uses proprietary technology and a disciplined indicator set to help you know when to buy, what to own and when to sell. The PAAS Model   follows a discipline, helping you eliminate emotional influences on your decisions. 


In December 2007, the indicator set issued a global sell signal, so the PAAS Model sold all investments, moving into a cash position. In 2008, the PAAS 5 Model performance was up 11.36% while the S&P 500 dropped 37%. In April 2009, the indicator set gave buy signals so the PAAS Model invested 100% into stocks. The model was up 43.75% in 2009! The total compounded annual average growth rate of the PAAS 5 Model is 25.09% since the beginning of 1995.


When you are in the market, you want to know what to own. Our proprietary Asset Class Ranking system leads you to make the most out of market opportunities. In April 2009, when our indicator set identified the beginning of a bull cycle, our ranking system isolated emerging international markets as the global leaders. Investing in leading asset classes or sectors early in a market cycle leads to rapid wealth accumulation.Broad diversification leads you to mediocre returns. The Asset Class ranking system helps you apply a "focused diversification"... your portfolio is focused, but only within the top performing asset classes while you eliminate the weak performers.


Knowing when to invest using our indicator set, coupled with what to own using our asset class ranking system provides you a powerful combination. Whenever the next bear market arrives, our indicator set will alert you with sell signals helping you to know when to sell and manage your risk. Our comprehensive, proactive strategies provide you a buy and sell discipline that will lead to rapid wealth accumulation during bull cycles and wealth preservation during bear cycles. PAAS will help you take control of your financial destiny, get more out of your investments, achieve security in retirement, and enrich your life.

Paas Performance Percent Chart (1/1/2000 - 2/22/2012)
The chart showing CLO series, CLS series, TLO series, TLS series, GSI series, S&P500 series.
  • Tactical Long/Short 1,308.38 %
  • Core Long/Short 1,280.43 %
  • Tactical 966.13 %
  • Core 942.89 %
  • Global Stock Index -3.80 %
  • S&P 500 -6.70 %
Model Portfolio Returns (as of 2/22/2012)
Model
MTD
QTD
YTD
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
PAAS 5 Core Long/Short3.52 %0.01 %0.01 %-7.96 %8.35 %54.16 %9.96 %31.71 %26.66 %28.57 %17.55 %63.57 %32.48 %21.53 %24.67 %55.86 %11.73 %26.45 %23.58 %24.48 %
PAAS 5 Core3.52 %3.17 %3.17 %-6.37 %14.48 %54.16 %1.62 %31.72 %26.95 %28.57 %17.54 %64.32 %20.69 %5.86 %15.04 %55.94 %14.52 %22.90 %23.58 %24.48 %
PAAS 5 Tactical Long/Short3.52 %0.01 %0.01 %-8.70 %14.53 %54.16 %17.54 %13.99 %35.08 %21.67 %24.29 %63.57 %32.43 %21.50 %22.57 %52.11 %11.78 %21.65 %23.58 %24.48 %
PAAS 5 Tactical3.52 %3.17 %3.17 %-6.85 %21.01 %54.16 %8.62 %13.99 %35.08 %21.67 %24.28 %64.33 %20.72 %5.86 %13.15 %52.21 %14.49 %18.33 %23.58 %24.48 %
Global3.95 %9.90 %9.90 %-9.42 %10.42 %31.52 %-43.54 %9.64 %18.78 %8.83 %13.30 %31.63 %-20.51 %-17.26 %-14.96 %24.83 %19.94 %12.93 %10.94 % 
S&P 5003.45 %7.96 %7.96 %0.00 %12.78 %23.45 %-38.49 %3.53 %13.62 %3.00 %8.99 %26.38 %-23.37 %-13.04 %-9.85 %19.16 %26.70 %30.90 %20.31 % 
Model Performance (as of 1/31/2012)
Portfolio(Ascending)
PAAS 5 Core Long/ShortPAAS 5 CorePAAS 5 Tactical Long/ShortPAAS 5 TacticalGlobalS&P 500
Total Return Since 19954479.38%3348.65%4275.27%3201.80%103.50%185.76%
Last 10 Yrs726.46%676.77%755.19%704.83%35.76%16.12%
Last 5 Yrs122.45%127.93%115.78%121.76%-14.70%-8.75%
Last 3 Yrs48.53%64.68%55.75%73.20%52.22%58.91%
Last 12 Months-4.40%0.31%-8.84%-4.05%-5.64%2.04%
Avg Ann Return27.84%25.35%27.24%24.77%6.19%7.42%
Cash Allocation > 40%22.44%22.44%45.85%45.85%  
Compound Average Growth Rate25.09%23.03%24.76%22.72%4.25%6.34%
Cash Allocation =100%8.78%22.44%8.78%22.44%  
Profitable 12 Mo Periods188188188187133138
Losing 12 Mo Periods66676055
High 12 Mo Return75.33%75.45%74.80%75.50%54.67%50.25%
Low 12 Mo Return-7.96%-6.37%-8.84%-6.85%-49.47%-44.76%

Important Disclosures

All PAAS Models were “mock” traded based on the buy, sell and reallocation disciplines developed by the Investor Education Institute. The returns shown are entirely hypothetical and for illustrative purposes only. The Investor Education Institute believes that the returns illustrated are substantially similar to those an actual investor would have received had they invested in the model at its inception, held it throughout the entire period and been charged fees at the same rate that the study assumes. It should not be assumed that future model performance would equal the past performance of the model .

The results shown here reflect the inclusion of an investment management expense of 1.50% annually, which is a quarterly expense of .375% of the Portfolio Value. Additionally, each transaction incurs a $10 charge to cover brokerage fees. The results shown here do not reflect the inclusion of any dividends that would have hypothetically been received for the market indices.

Investment accounts substantially similar to the model illustrated here were first offered to clients of Arlington Capital Management, Inc. beginning April 1, 2009. No actual accounts were allocated to this model during the test period from January 1, 1995 thru September 30, 2010.

Both buy & sell transaction prices were the average of the high and low price the day the security or asset class was transacted. The prices that an actual client would receive for similar trades could potentially differ from the prices illustrated. This deviation could negatively impact the return to the client.

Arlington Capital Management, Inc. is a Registered Investment Adviser.

As of the publication date of this model, individuals involved in the research of this model, employees of the Investor Education Institute and Arlington Capital Management, Inc. and its’ affiliates and/or members of their households may hold positions in the various PAAS Models.

Securities included in models shown here are selected based upon technical factors. Events affecting the world economy and/or the securities markets, both domestic and international, may have a significant negative impact of the securities included herein. Funds allocated to international investments could be subject to risks associated with changes in currency values, economic, political and social conditions, the regulatory environment of countries in which the funds are invested, as well as the difficulties of receiving current and accurate information.

All investments involve risk and may not be suitable for all investors. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer to buy or sell any securities. The Investor Education Institute makes no representation as to the completeness of the information, factors or data provided. Arlington Capital Management, Inc., it affiliates, directors, officers, employees and employee benefit programs may have a long or short position in any securities of issuers referenced or in related investments.

This report is prepared for general circulation and is circulated for general information only. It does not consider specific investment objectives, financial situations and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness in investing in any securities or investment strategies discussed. Past performance is not a guarantee of the future performance. Actual results will vary. Supplemental information on model results can be obtained from the Investor Education Institute at 21 South Evergreen Ave, Suite 210, Arlington Heights, Il 60005 or 1-800-504-8505.

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