During this period of extraordinary market upheaval, Appleton Group is taking the unprecedented step of disclosing our current approximate offensive vs. defense investment allocations for all of our Private Client Risk-Managed Strategies, Age-Based Hybrid Strategies, and Traditional Risk-Accepting Strategies. Positions will vary for each actual client account invested in each of the strategies listed below.
Offensive positions are generally invested in U.S. equities, foreign equities, high-yield fixed income, commodities, real estate, etc. Defensive positions are generally invested in cash/money market assets, short-term fixed income, inflation-protected U.S. government securities, investment-grade fixed income, etc. During periods of severe market turbulence, it is not uncommon for assets normally considered defensive in nature to also experience unusual market volatility (risk). As such, some traditional “defensive” assets can also experience market risk.
Please note that risk-accepting and stable value strategies for Appleton Group 401(k) clients are excluded from this analysis. Contact your Appleton Group Advisor for additional information. Please click HERE for to access portfolio factsheets for each Appleton Group managed strategy.
Data as of May 28, 2020:
Risk-Managed Strategies
| Strategy Name | Approx % of Assets Offensive vs. Defensive |
|---|---|
| Appleton Group Portfolio | |
| Appleton Group Portfolio – Moderate | |
| Appleton Group Portfolio – Conservative | |
| Tax Managed Growth | |
| Tax Managed Growth – Conservative | |
| Managed Income | |
| clearTREND Opportunities | |
| Social Impact | |
| U.S. Sectors | |
| Wisconsin Focus |
Age-Based Hybrid Strategies
| Strategy Name | Approx % of Assets Offensive vs. Defensive |
|---|---|
| Appleton Group Age-Based 18-29 | |
| Appleton Group Age-Based 30-39 | |
| Appleton Group Age-Based 40-49 | |
| Appleton Group Age-Based 50-59 | |
| Appleton Group Age-Based 60+ |
Risk-Accepting Strategies
| Strategy Name | Approx % of Assets Offensive vs. Defensive |
|---|---|
| Appleton Group Traditional -Aggressive Growth | |
| Appleton Group Traditional -Growth & Income | |
| Appleton Group Traditional – Income Focused |
Principal Risks:
Loss of Money
An investor may lose money when he or she buys or sells the investment, including part of the principal.
Market Volatility
The market value of the portfolio’s securities may fall rapidly or unpredictably due to changing economic, political or market conditions.
Active Management
Performance is subject to the risk that the advisor’s investment strategies are not suited to achieving the investment objective or do not perform as expected, which may cause the portfolio to lose value or underperform investments with similar objectives/strategies.
Portfolio Turnover
Active trading may create portfolio turnover of 100% or more, potentially resulting in increased transaction costs.
Exchanged Traded Funds (ETFs)
Assets invested in ETFs generally reflect the risks of owning the underlying securities they are designed to track, although they may be subject to greater liquidity risks and higher costs than owning the underlying securities directly due to their management fees.
General Disclosures:
The Appleton Group Portfolios are separately-managed accounts, not mutual funds. As market conditions fluctuate, the investment return and principal value of any investment will change. Before investing in any investment portfolio, the
client and financial advisor should carefully consider the client’s investment objective, time horizon, risk tolerance, and fees. Diversification may not protect against market risk. There are risks involved with investing, including possible loss
of principal. Appleton Group LLC utilizes ETFs as the primary underlying investment vehicle. Since each Appleton Group LLC portfolio is a “portfolio of funds” an investor will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which Appleton Group LLC invests in addition to the Appleton Group LLC’s fees and expenses. The investment’s performance may be impacted by its concentration in a certain type of security, adherence to a particular investing strategy or unique aspect of its structure and costs.
Performance results for clients invested pursuant to this proposal will vary due to market conditions and other factors, including cash flows, fund allocations, frequency and precision of rebalancing, cash balances, varying custodial fees, and the timing of fee deductions. As a result, actual performance for client accounts may differ materially from, and may be lower than, that of this presentation.
This presentation is being provided by the Appleton Group, LLC, a SEC registered investment adviser. You must review the Appleton Group, LLC’s Form ADV PART 2A Disclosure Brochure and client agreement form for complete details on their program’s brokerage fees, transaction fees, investment management fees, expenses and other charges.
The cumulative effect of fees and expenses can substantially reduce the growth of your investments. Fees and expenses are only one of the many factors to consider when you decide to invest. Please consider whether an investment in a particular managed strategy, along with your other investments, will help you achieve your financial goals.
