Strategic Real Return Portfolio

INVESTMENT OBJECTIVE DESCRIPTION

Primary emphasis on preservation of purchasing power by focusing on modest capital growth; some emphasis on generation of current income. Focus on conservative fixed-income instruments and/or conservative equities. High exposure to interest rate risk; conservative to moderate exposure to market risk. Exposure to foreign risk and/or currency risk possible.

INVESTOR PROFILE

This diversified portfolio is suitable for investors with a conservative-to-moderate tolerance for risk and/or whose primary objective is to combat erosion of capital by inflation and/or dollar devaluation.

INVESTMENT MINIMUMS

MANAGEMENT STYLE

For this portfolio we begin with a macro picture that helps determine tactical weightings between asset classes such as stocks, bonds, commodities and money markets.

At the micro level, we use fundamental and technical analysis to narrow our selection within each asset class.

Risk management is as important as asset selection. We employ put option strategies, large amounts of cash and treasuries to offset market exposure. These strategies are designed and employed with the intent of reducing the volatility of a portfolio. In volatile markets, our risk management strategy can create higher than normal trading activity; therefore, volatile markets can increase transaction costs for managing the account.

ASSET CLASSES

  • Cash and cash equivalents
  • Fixed-interest securities (primarily bonds, both foreign and domestic)
  • Stocks (primarily large-cap, international companies with longstanding dividend payment policy)
  • Natural resources
  • Precious metals (stock and bullion/coins)
  • Industrial metals/infrastructure
  • Options (covered calls to generate income, put options to mitigate downside risk)
  • Currencies

Other investment products may be considered to be appropriate investment vehicles under specific situations.

Although portfolio holdings are generally long, occasional short index or ETF positions may be warranted by market conditions.

INCEPTION DATE

31 December 2008


INVEST WITH US

If you are interested in opening an account, please complete our Invest with Us inquiry form or call us directly at (888) 486-3939 or (858) 487-3939.


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