Investment Timing And Asset Allocation Service

Asset Builders Corporation is now proud to present a new service to its investors.  In addition to our current management service, we have introduced an investment timing and asset allocation service, which is designed for use with mutual funds and variable annuities.  This service will attempt to maximize your returns by doing the following:

1. Timing the market and going to cash when necessary.

2. Allocating assets to sectors that are currently in favor; and

3. Using hedge funds, which are inversely correlated to the performance of the corresponding index.¹

This service is thus meant to try and minimize losses and maximize gains² by being either fully invested or going to cash or hedge funds when necessary.  It will also involve choosing the right investment sectors³ at appropriate times and right asset classes to match your risk tolerance level.

If you are an existing Asset Builders Corporation customer, you are already receiving this service as stated in our Investment Management Agreement.  However, if you have mutual funds, or variable annuities invested elsewhere, we have the capability to apply the timing and asset allocation service to those accounts.  You may choose to leave your assets wherever they are or transfer it to our custodian.  In either case signing a limited power of attorney designating me as your investment advisor will give me the discretionary power to make the changes.

¹ A hedge fund is a very specialized, volatile, open end investment company that permits the manager to use a variety of investment techniques usually prohibited in other types of funds.  These techniques include borrowing money, selling short, and using options.  Hedge funds offer investors the possibility of potentially large gains but have above average risks.
² Timing the market with personal assets may result in short or long term capital gains. Assets in a retirement plan or in an annuity will not incur immediate taxation, neither might you have the advantage of taking losses.

³The choice of your fund family or annuity might hinder our asset allocation policy if the required sector fund or hedge fund is not available in that family of funds or in that annuity.
⁴Past performance is not a guarantee of future performance. Investment return and principal value of an investment will fluctuate, and an investor’s shares when redeemed may be worth more or less than their original cost.

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