The Milwaukee Company has issued two actively managed fund of funds that systematically adjust their asset allocations to enhance return and reduce risk. The Brinsmere Fund – Growth ETF and the Brinsmere Fund – Conservative ETF trade on the New York Stock Exchange.
The Brinsmere Funds ETFs invest in a globally diversified portfolio of equity and bond markets. They systematically adjust their holdings using two strategies developed by The Milwaukee Company. The strategies are the “Systematic Market Beta Strategy” (SMB) and the “Classic Asset Allocation Revisited Strategy” (CAAR). These strategies are run independently.
Reduce Risk & Adapt to Change
SMB seeks to reduce risk and enhance performance by adjusting asset allocations based on its risk assessment. Its goal is to capture market beta, while limiting volatility by hedging the risk of an extended bear market for stocks, bonds, or both.
CAAR uses a statistical process known as “mean-variance optimization” to tactically adapt its portfolio to changing market conditions.
TBFG seeks long-term growth of capital. It uses a version of CAAR that seeks to create a growth-focused portfolio with the highest expected return for a set of constraints consistent with a growth investment objective.
TBFC, meanwhile, seeks long-term capital appreciation in a manner that is consistent with capital preservation. It uses a version of CAAR that seeks to create a conservative portfolio.
SMB and CAAR rebalance the underlying funds that TBFG and TBFC invest in based on risk-management techniques.
TBFG charges 42 basis points; TBFC charges 41.
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