The program is an investment advisory program with continuous and regular supervision of investments by WS Wealth Managers Inc. using the advanced brokerage custodian platform provided by FOLIOfn Investments.

Combinations of stocks, exchange traded funds (ETF's), Closed End Funds (CEF's), as well as limited fixed income securities and mutual funds are combined into "model" FOLIO's designed to accomplish specific investment objectives. Subcriptions to certain combinations of FOLIO's and periodic modifications are designed to provide for superior risk management and an efficient and optimized form of Dynamic Asset Allocation custom tailored to each investor.

A "typical" portfolio in the program, analyzed using Morningstar Office software indicates a high degree of diversification with 1500 equity and 500 fixed income holdings. This level of diversification is possible, even in smaller accounts, in part because of the ability of the FOLIOfn platform to trade fractional shares.



Friday, October 8, 2010

WS Rising/High Interest I Description (Thematic)

Diversified portfolio with  25-30 holdings of stocks in companies (in the CIO's judgement) that are expected to have a higher relative profitability during periods of rising interest rates because of their industry and their financial position. In other words, companies with relative pricing power during periods of inflation and financial “staying power” during periods of recession or stagflation. Companies must pass a screening process that compares EBITDA and Cash on Hand to Debt. Stocks are concentrated in Health Care, Technology, and Energy. (Financial Services stocks are avoided.)  Returns in the short run can be highly affected by actions of the US Federal Reserve and other headline risk. FOLIO uses ETF that moves up in value when interest rates rise as well as ETF that tracks Treasury Inflation Protected Securities.The FOLIO may lag the S&P500 significantly during periods of interest rate decline and hence is more risky during transition periods.  It should be categorized as “volatile” and suitable for only a portion of a diversified portfolio. Standard Deviation expected to be 120-140% of S&P500.  Target Beta is approximately 0.90.

Past performance does not predict future performance. Exposure to this FOLIO assumes some probability market expectations for rising interest rates and inflation.

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