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ATHENA
GLOBAL TACTICAL

Tactical market rotation strategy designed to invest in the right market at the right time.

  • Inception

    September 2010

  • Benchmark

    Morningstar Global Markets NR Index

  • Morningstar Category

    Tactical Allocation

Investment Overview

Objective

The strategy seeks to generate long-term capital appreciation.

Strategy

Athena uses patented behavioral market indicators to gauge and select broad market exposure among various equity markets, market capitalization, or cash each month. The strategy invests in positions within US small cap, US large cap, or international equities when market indicators are strong. When indicators are very strong, the strategy’s exposure can increase to twice the market to enhance returns. When indicators are weak, the strategy can move to 100% cash.

Ratings & Rankings

As of December 31, 2023

Morningstar RatingTM

Overall
3-Year
5-Year
10-Year

Morningstar Ranking

1-Year
#288 out of 417
3-Year
#110 out of 372
5-Year
#17 out of 330
10-Year
#3 out of 187
Overall Morningstar Rating™ for Athena Global Tactical as of December 31, 2023, rated against 372 Tactical Allocation Funds.

At A Glance

Tactical Tilt

Systematically deliver a tactical tilt to your overall portfolio making your allocation more responsive to market conditions.

Market Rotation

Market rotation is driven by our patented research measuring deep macro-level crowd behaviors.

Opportunistic & Defensive

Increases exposure up to 200% in attractive equity markets or moves to 100% cash for defensive purposes.

Investment Performance

Growth of Hypothetical $10,000 Investment1

September 1, 2010 – March 31, 2024

  1. Growth of Hypothetical $10,000 Investment and all performance figures and statistics are based on composite portfolio performance. Performance is reported net of all trading, custodial, and management fees. Benchmark growth is based on historical index returns over the same period. Assumes reinvestment of dividends and is reported on a pre-tax basis.

Annualized Trailing Performance

As of March 31, 2024

* One Month and Year to Date returns are not annualized.
† Portfolio performance is net of management fees.
^ 2010 returns are Sept 1 – Dec 31 and are not annualized.


Investment Management

Athena uses patented behavioral market indicators to gauge and select broad market exposure among various equity markets, market capitalization, or cash each month. The strategy invests in positions within US small cap, US large cap, or international equities when market indicators are strong. When indicators are very strong, the strategy’s exposure can increase to twice the market to enhance returns. When indicators are weak, the strategy can move to 100% cash.

Portfolio Managers

C. Thomas Howard, PhD.

12 years on strategy, 45 years of experience

University of Idaho, BS in Mechanical Engineering
Oregon State University, MS in Management Science
University of Washington, PhD in Finance

Andrew C. Howard

12 years on strategy, 12 years of experience

University of Denver, BSBA in Finance


Investment Literature

Core Materials


Investor Guide

May 2022 Revision
Introductory guide to facilitate client discussions about the investment strategy.

Fact Sheet

As of March 31, 2024
Current performance and statistics report for the strategy updated monthly.

GIPS® Report

As of December 31, 2022
Composite GIPS® performance and disclosure report updated annually.

Commentary

As of March 31, 2024
Strategy, market, and economic commentary updated quarterly.

Investment Disclosures

This document is informational in nature only. Nothing herein is intended to imply that an investment in this portfolio may be considered “safe” or “risk free.” This investment portfolio may not be suitable for all types of investors. This information is not intended to constitute legal, tax, accounting or investment advice. Prospective clients should consult their own advisors about such matters. No regulatory authority has passed upon or endorsed this summary or the merits of an investment using our strategy.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE.

PORTFOLIO PERFORMANCE  Monthly performance results include all discretionary accounts within the Athena Global Tactical portfolio including accounts that are no longer active as of the time of the publication of this document. Accounts are included in the composite performance after the day the initial portfolio position trades settle to the present or to the closing of the account. Performance results are asset-weighted composite returns calculated using a daily wealth relative method. Composites are valued daily and cash flows are accounted for on a daily basis. Monthly returns are calculated based on the daily wealth relative series and monthly geometric linking of performance results is used to calculate longer time period returns. Return figures are calculated using posting date accounting. All realized and unrealized capital gains and losses as well as all dividends and interest from investments and cash balances are included. The performance figures presented are net of brokerage commissions and all other expenses, including Athena’s management fee. The investment results shown are not representative of an individually managed account’s rate of return, and differences can occur due to factors such as timing of initial investment, client restrictions, cash movement, etc. Securities and portfolio weights used to implement the portfolio can differ based on account size, custodian, and client guidelines.

PORTFOLIO ALLOCATION GUIDELINES  Information concerning portfolio allocations is representative of the target portfolio guidelines as of the publication date and does not necessarily reflect an actual client account. Actual client account composition may differ as a result of client-imposed investment restrictions, the timing of client investments, current market and economic conditions, and security availability. The investment manager may chose to substantially change asset class and individual security allocations at any time and without notice.

PRINCIPAL INVESTMENT RISKS  An investment utilizing our investment methodology involves risks, including the risk of loss of a substantial portion (or all) of the amount invested. There is no assurance that the investment process outlined in this document will consistently lead to successful results. PAST PERFORMANCE DOES NOT GUARANTEE OR INDICATE FUTURE RESULTS. Risks of investing in the Athena Global Tactical portfolio include, but are not limited to:  ETF, MF AND CEF RISK  The cost of investing in the portfolio will be higher than the cost of investing directly in Electronically Traded Funds (ETFs), Mutual Funds (MFs) and Closed-End Funds (CEFs) and may be higher than other portfolios that invest directly in stocks and bonds. Each ETF, CEF and MF is subject to specific risks, depending on the nature of the fund.  LEVERAGED OR GEARED ETFS RISK  Leveraged ETFs seek to deliver multiples of the performance of the index or benchmark they track. For example, a 2x leveraged S&P 500 ETF seeks to deliver twice the investment return of the S&P 500 Index for one day. This also means that this ETF will lose 2% for every 1% loss in the index. Most leveraged ETFs “reset” daily, meaning that they are designed to achieve their investment objective on a daily basis. The returns, losses, and volatility of the underlying index are all amplified when using leveraged ETFs. For more information about how leveraged ETFs implement their investment strategies and their specific risks, please refer to each ETF’s prospectus.  ADDITIONAL RISKS OF HOLDING LEVERAGED OR GEARED ETFS FOR PERIODS LONGER THAN ONE DAY  The Athena Global Tactical investment strategy makes frequent and substantial use of leveraged ETFs, investing all of its assets in a single 2x leveraged ETF roughly 50% of the time. The strategy invests in leveraged ETFs for periods longer than one day, up to months or years, which can result in performance that is significantly different than the indicated multiple of the underlying index or benchmark, including performance in the opposite direction of the underlying index’s return. The strategy’s practice of holding leveraged ETFs for longer than one day may be contrary to the design and investment objective contained in the leveraged ETFs’ prospectuses and exacerbates the impact of compounding on the strategy’s performance, especially during periods of high market volatility.  DATA TIMING RISK  In managing the Athena Global Tactical strategy, AthenaInvest makes investment decisions once per month, at most. The investment strategy’s design results in holding periods of six to nine months on average, which, when the strategy is holding a 2x leveraged ETF, is contrary to the design and investment objective contained in the leveraged ETFs’ prospectuses.

BENCHMARK DISCLOSURE  The benchmark for the Athena Global Tactical portfolio is composed of 100% Morningstar Global Markets Index. This benchmark was selected to generally represent a similar opportunity set of investments compared with the portfolio. The portfolio does not seek to replicate the composition, performance, or volatility of the benchmark or its constituent indices and can be expected to have investments that differ substantially from the securities included in any index. Accordingly, no representation is made that the performance, volatility, or other characteristics of the portfolio will track the benchmark. It is not possible to invest directly in an index.

INDEX DEFINITIONS:  MORNINGSTAR GLOBAL MARKETS INDEX The index measures the performance of the stocks located in the developed and emerging countries across the world. Stocks in the index are weighted by their float capital, which removes corporate cross ownership, government holdings and other locked-in shares.

Athena portfolios are not sponsored, endorsed, sold or promoted by Morningstar, Inc. or any of its affiliates (all such entities, collectively, “Morningstar Entities”). The Morningstar Entities make no representation or warranty, express or implied, to the owners of Athena portfolios or any member of the public regarding the advisability of investing in Athena portfolios or the ability of the portfolio to track general market performance.

THE MORNINGSTAR ENTITIES DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE ATHENA PORTFOLIOS OR ANY DATA INCLUDED THEREIN AND MORNINGSTAR ENTITIES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.

DATA DISCLOSURE  All of the information included in this document is current as of the date indicated and is subject to change. Certain information has been obtained from various third-party sources believed to be reliable, but we cannot guarantee its accuracy or completeness. This information is not intended to be complete, and material aspects of the descriptions contained herein may change at any time. While the information prepared in this document is believed to be accurate, we make no express warranty as to the completeness nor can we accept responsibility for errors made in good faith.

INVESTMENT MANAGER  Portfolio management is provided by AthenaInvest Advisors LLC, an SEC-registered investment advisor. Such registration does not imply that the Securities and Exchange Commission approves or endorses AthenaInvest, its investment strategies, or any of its marketing materials.


Morningstar Ratings™ are based on risk-adjusted performance as of 12/31/2023. The Morningstar Rating™ for a strategy is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating™ metrics. For each strategy with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a strategy’s monthly performance (including the effects of applicable fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of strategies in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star.

© 2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.