March 24, 2015

Financial Professionals

Capital Management Services Inc. (“CMS”) has been a trusted partner to Financial Professionals for over 30 years.

Third Party- Tactical Money Management:

CMS has used the models published by the acclaimed advisor research service The Sherman Sheet for more than a decade, and is authorized to offer its investment models to advisors as a third-party manager.  All of The Sherman Sheet models, and many blends of those models, are now available to advisors at a variety of custodians.

Using CMS to manage your client funds in Sherman Sheet Models frees your time while insuring that your clients benefit from time-tested and proven Sherman Sheet portfolios.

We are on various platforms which you can find at the bottom of this page.

Professionally Managed Tactical Portfolio Choices

Risk Managed Portfolios

Three Risk Managed Portfolios serve as the default investment choices for plan participants. Each contains a mixture of equities and bonds. The distinguishing feature among them is the maximum level of equity exposure.

Maximum Equities Exposure

Risk Managed Portfolio Choices

90%

Risk Managed High Equity Portfolio

60%

Risk Managed Medium Equity Portfolio

30%

Risk Managed Low Equity Portfolio

The goal of the Risk Managed Portfolios is to reduce the potential for damage in high-risk periods, while taking advantage of low-risk periods.

Portfolio Name

1 Year

3 Year*

5 Year*

Risk Managed Low Equity Portfolio

6.46%

5.63%

5.20%

Risk Managed Medium Equity Portfolio

8.25%

5.27%

6.65%

Risk Managed High Equity Portfolio

9.82%

6.13%

9.11%

*annualized

About Dalbar Validation

The Risk Managed Portfolios have been awarded the DALBAR QDIA Validation for 2016, certifying that they are suitable for use as a Qualified Default Investment Alternative and meet all ERISA (Employee Retireement Income Security Act) requirements applicable to QDIAs in 401k plans. In addition, the Risk Managed Portfolios were awarded all A(highest) rankings in the separate DALBAR Asset Allocator analysis.

dalbar2016The DALBAR QDIA validation is recognized as a primary means for for plan sponsors and advisors to satisfy the ERISA requirements, including the requirement of due diligence and analysis of QDIAs used in their 401k plans. Since the Department of Labor has also stated its intention to require that advisors who provide advice on RIA investment must meet the same investment advice standars as the QDIA standards, this validation provides an important level of security and compliance to both the advisor and the IRA investor.

Specialty Portfolios

Seven Specialty Portfolios are available as well as outlined below.

Portfolio Name

1 Year 3 Year* 5 Year*

Bull/Bear Portfolio

4.82%

5.33%

8.39%

Bull/Calendar Portfolio

0.12%

3.05%

8.76%

Calendar Effects Portfolio

7.95%

3.36%

5.49%

Long/Cash Portfolio

17.74%

8.68%

13.84%

Long/Short Portfolio

19.58%

7.05%

11.93%

Multi-Sector Bond Portfolio

10.57%

5.17%

4.30%

Sector Rotation Portfolio 3.02% 7.99%

10.26%

*annualized

Blended Specialty Portfolios

Five Blended Specialty Portfolios are also available. These portfolios seek to reduce risk by deploying funds across multiple Specialty Portfolio strategies, and blends are offered for a variety of investor profiles.

Portfolio Name

1 Year 3 Year*

5 Year*

Conservative Blend

5.91% 3.73%

5.79%

Conservative-Moderate Blend

8.38% 4.70%

7.68%

Moderate-Aggressive Blend

7.82% 4.62%

7.46%

Moderate-Aggressive All-Equity Blend

4.9% 11.7%

12.4%

Aggressive Blend

9.53% 6.55% 11.46%

*annualized

Note: Returns through September 30, 2016. Returns are based upon a systematic, rules based strategy that has been back-tested to produce hypothetical results. Returns include deduction for management fees but do not include plan expenses.
**Performance Disclosures
The performance presented is net of a 0.50% annual management fee, but does not include transaction costs, if any, or other fees which may be imposed on a specific account. Model results do not represent actual trading in client accounts nor do they reflect client-specific activities such as contributions, withdrawals or restrictions. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, such results may not reflect the impact that material economic and market factors might have had if accounts had actually been managed by CMS during the entire period portrayed. Neither past actual nor hypothetical performance guarantees future results. Clients should not rely solely on this performance or any other performance illustrations when making investment decisions. Past performance does not guarantee future results. Client account values will fluctuate, and may be worth more or less than the amount invested.  Clients should not rely solely on this performance or any other performance illustrations when making investment decisions.

Tactically Managed Models Available (but not limited to) the following Platforms:

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