SIP Fund Management Services
High Falls Advisors LLC offers the SIP Fund Management Service. We provide a style of management that works to control the downside risk of your portfolio. The long term performance trends of the funds available to SIP clients determine the extent to which you are invested in equity funds, or under the stability of the fixed income fund. Using long term trends as buy or sell signals is a technical concept based on historical values. We do not attempt to predict future trends in the market, but we pay attention to long term trends. When we approach a negative threshold, we react in a defensive way, thus controlling the downside risk of the portfolio.

Asset Allocation
All investment markets have good years and bad years. The investor does not know in advance which market will outperform the other. Therefore, the concept of asset allocation allows the investor to participate in the performance of all markets in a well-diversified portfolio. This service sets a target asset allocation that is unique to each investor and would be fully “invested” only when every fund is performing above its long term trend.

Fund Selection
SIP funds are analyzed continuously to determine their inclusion or exclusion in the service. Funds that are used in the management service are selected from those we believe will provide the best representation of each broad investment category, including fixed income, large cap stock (value and growth) mid cap stock, small cap stock, international stock, and real estate.

Management Process
Our service tracks participating funds on a daily basis. When a selected fund’s unit value is above its long term average, the target allocation to that fund is invested. When the unit value falls below its long term average, the allocation goes into SIP’s fixed income fund to wait out the downward trend for that fund. At the end of the year, the portfolio is rebalanced to the original asset allocation.

Pricing
Starting with your initial consultation, we help you determine your goals and identify your risk tolerance. Participants in this program are billed every 3 months based on the value of their funds at the end of each quarter. The annual, ongoing management fee is calculated as a percentage of total asset value.

• See Jim Englert for more