The first step in designing our Foundation portfolios is the careful and purposeful selection of Exchange Traded Funds (ETFs) . 

While this popular vehicle has been around for more than 20 years, like any investment, none are created equal. With thousands of ETFs to choose from, their careful selection is a critical and defining element paramount to the success of each of our funds. Using our extensive data base and a quantitative risk and return methodology we determine our ETF universe. Further hand selection of ETFs that will prove most effective for the targeted market exposures determined by our asset allocation program also ensures comprehensive coverage of broad asset classes while avoiding overly co-related ETFs

One 
Long-term positive returns are dependent on asset allocation. While historic returns are no indicator of future returns, a solid understanding of the historic performance of each asset class is critical to understand the capital markets within their current context. Expectations can only be determined by analyzing decades of return information. 

That’s what we do at Foundation Mutual Funds. Through careful analysis of historic returns, we are able to develop long-term expectations. Using this  process, we’re able to determine when one particular asset class is performing outside of the norm, and adjust our portfolios accordingly. 

Our multi-step process starts with taking a broad look at the overall economy – a top down approach that enables us to design portfolios around the asset classes that we believe will perform well in expected scenarios. That way, we are able to overweight or underweight certain asset classes to systematically exploit inefficiencies or temporary imbalances in the market. This ensures that each portfolio always holds the most attractive mix of stocks, bonds and cash. 

Plus One 
The third plus in our equation is one that we truly believe defines our unique opportunity. With asset allocation determined and represented by a carefully selected basked of ETFs, we seek to add value by taking advantage of specialized investment and secular themes. Each one of our portfolio’s allocates a certain percentage of assets under management to be dedicated to opportunities the manager believes will result in out performance. Industry, sector or sub-sector specific themes, chosen at the managers discretion, will compliment the overall strategy and provide the flexibility to ensure optimal performance.

Equals Opportunity
It all adds up for Foundation Fund investors: hand-selected ETFs plus a carefully constructed asset allocation program plus opportunistic themes equals a unique and compelling family of funds suitable for investors seeking returns commensurate with their appetite for risk. Because at Foundation Funds, we truly believe that the whole really is greater than the sum of the parts.