Asset Management by Windsor Securities : Income 2 Strategy (MI2)

Summary

MFIP, Inc. is registered with the NFA and CFTC as a Commodity Trading Advisor and Commodity Pool Operator. Windsor Securities is a SEC-Registered Investment advisor which has managed client assets on a discretionary basis since 1973. MFIP, Inc. and Windsor Securities (together "WSI") are affiliated through common ownership and personnel. MFIP Income 2 Strategy (MI2) uses proprietary mathematical models to discern the probability of broad-market short-term moves in bonds and interest rates, and invests assets through frequent re-allocation in Ultra U.S. Treasury Bond futures. Our objectives are increased Alpha and reduced Beta: superior capital growth uncorrelated with equity, bond, and CTA indexes; significant absolute returns in all market scenarios; and added-value diversification to portfolios with other assets. The MI2 strategy began trading September 1, 2015, with historical pro-forma results back to Sept 2002.

Investment Strategy

MI2 uses an alternative tactical overlay structure to opportunistically buy and sell highly liquid US Treasury derivatives over short time periods. MI2 can be invested long or short and uses no leverage. It retains the desirable aspects of fixed income assets while substantially reducing the portfolio’s interest rate risk.

Risk Management

Shorter-term indicators act as trading curbs to reduce exposure. Risk is further managed by varying exposure to U.S. Treasury Bonds.

Significant consensus among the technical indicators leads to a beta 1.0 position, long or short. Limited consensus lowers exposure. In the absence of consensus, no position is taken.

Focus on limiting exposure to limit volatility, without sacrificing return.