The Dispatch

Manager Spotlight

Ocean Park Asset Management

Outcomes Delivered by Discipline

Since 1988, Ocean Park’s goals have been to help retirees and other conservative investors limit downside risk and grow wealth. Through the years, Ocean Park has remained committed to a truly tactical, quantitative, rules-based investment approach, with the objective of limiting downside risk and producing returns that a conservative investor would deem satisfying. Using decades of strategic research and rules-based disciplines, it strives to help advisors and their clients meet investment objectives.

When to Buy – Quantitative, Rules-Based

Ocean Park’s tactical rules-based investment disciplines only buy when its decision rules show an uptrend has begun or is in progress. It doesn’t just look at share prices, but uses exponential moving averages to help drive its decisions.

• Buy only when its decision rules show an uptrend has begun or is in progress
• Once a given asset class/sector begins an uptrend that is adequate to generate a Buy signal under its proprietary discipline, it analyzes all mutual funds and ETFs in that asset class/sector to determine which to buy.
• Buy signals are quantitative – and the discipline is the contrary of its trailing stops for Sell signals.

What to Buy – The Most Complex Question

As part of the risk-mitigation discipline, Ocean Park gives preference to asset classes and sectors with low volatility. Its trailing stop bands will be tighter, so that when the trend reverses from up to down, it gives back less.

When there are multiple asset classes and sectors in uptrend, preference is given to those that are not highly correlated to each other, or the overall portfolio.

When to Sell – Quantitative, Rules-Based

Ocean Park treats a Sell signal as a mandate, to prevent any possibility of further damage to the portfolio. A Sell signal occurs when the price rises below the recent high of the lower band.

• Monitor and review trailing-stop-loss discipline daily for every holding.
• When the price of a holding declines below the trailing stop sell and move temporarily into cash.
• The trailing stops are completely quantitative and are proportionate to the historic volatility of each asset class/sector.
• The stop-loss discipline limits the impact of any sustained decline on the overall portfolio.

Ocean Park has four strategies on the EQIS platform:

• Ocean Park Tactical Bond Strategy - $25,000 minimum investment per account
• Ocean Park Conservative Allocation Strategy - $50,000 minimum investment per account
• Ocean Park Municipal Bond Strategy - $50,000 minimum investment per account
• Ocean Park Strategic Income Strategy - $50,000 minimum investment per account

Details are available on the EQIS and Freedom Advisors platforms.

If you would like to deploy these strategies using the EQIS platform, go to the respective client contact and from the Action drop-down menu in the upper right corner, select Change Asset Allocation.

This option is only available for clients who have provided you with trading authorization. If you do not have trading authorization, you can either submit a Limited Power of Attorney signed by the client or use the Client Directed Asset Allocation Form found on the Resources Tab and have the client sign it.

Your EQIS Business Consultant is available to help you implement these changes, or contact Advisor Services at support@EQIS.com or 800-949-9936 and press 2.

The information is believed to be reliable but is not guaranteed by EQIS. EQIS and Ocean Park Asset Management are not affiliated. This is not an offer to buy or sell securities.

In This Issue:

• State of the Markets   |   Corporate Credit Opportunity?
• Making it Easier to Do Business   |   Take Advantage of Household Billing
• Manager Spotlight   |   Ocean Park Asset Management
• Best Practices   |   Keeping Score

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