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Equity Investment Strategies |
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Noyes
Capital
offers a full range of equity investment options
in order to meet the long term investment goals
of our clients. During the consultation process,
we work with our clients to determine the Asset
Allocation Guidelines which we mutually agreed-upon.
These guidelines contain target allocations and
acceptable ranges that we implement at our discretion
on behalf of our clients. These parameters allow
us the discretion and flexibility to address particular
market developments (i.e. overweighting in Bonds
during a bear market and overweighting in equities
during a bull market, in each case within the
Asset Allocation Guidelines). Additionally, these
guidelines determine the various asset classes
(i.e. large cap stocks, small cap stocks, fixed
income, international, foreign fixed income and
commodities) that will be purchased in your portfolio.
Various strategies include:
Income
Focused Strategy
Our
Income-Focused Strategy structures portfolios
with lower volatility, designed for investors
seeking steady returns and stable incomes. Traditional
equities usually make up no more than 30% of
Income portfolios although stable high dividend
securities (Utilities, energy, preferred stocks)
may increase the percentage of equities in the
portfolio. Typical investments in this portfolio
include CD's, inflation indexed notes, high
dividend stocks, arbitrage funds, corporate
bonds and US Treasury Bonds. Over time, we work
with our clients to determine the appropriate
balance between the demand for current income
and the risk of higher rates and the resulting
decline in principal value.
All Weather Portfolio
This
strategy is designed to add risk in Bull markets
and reduces risk in Bear markets. Equities share
of this portfolio ranges between 35% and 45%.
It is designed by placing a group of active
allocation mutual funds in the middle of a portfolio
of low cost index-type mutual funds. The fixed
income component can be created with either
taxable or tax-free bond portfolios. Fixed income
investments such as bonds, bank loan funds,
utilities, REITs and foreign bond funds help
create a stable source of diversified income.
The goal of the “All Weather Portfolio”
is to outperform the overall market over the
next five years with moderate volatility.
50-50
Moderate Growth Strategy
Our
50-50 Balanced Strategy typically entails portfolios
that blend fixed income instruments and equity
securities which we believe provides a more
stable source of return over time. In creating
a 50-50 Balanced Strategy portfolio, we use
our 25 years of market experience to establish
the proper portfolio blend comprised of different
types of investments having various market capitalizations
(large and small), investment styles (value
and growth), and maturities (for fixed income).
At any given time, A 50-50 Balanced Strategy
may have substantially more equities than bonds
and visa-versa depending on then-prevailing
market conditions. Over time, however, portfolios
in this category will have a 50-50 balance.
The goal with the 50-50 Balanced Strategy is
to generate a long-term stable return with less
volatility for the client.
50-50
Moderate Growth Strategy plus International
Our
50-50 Balanced Strategy plus International contemplated
the balanced strategy discussed immediately
above with some exposure to international securities
for added diversification. International markets
and securities are generally more volatile than
the U.S. markets and securities. Nonetheless,
these securities can add to a portfolio's level
of diversification and higher-expected return
goals. In a 50-50 Balanced Strategy plus International,
a small portion (typically less than 10%) of
your portfolio will be committed to emerging
markets such as South America, Eastern Europe
and India. Equities from developed countries
such as Western Europe, Japan and Canada will
generally be included in order to smooth out
international exposure.
Growth
Strategy plus International
Our
Growth Strategy focuses on buying stocks, mutual
funds, ETFs and closed-end funds of US and International
securities. Typically, equities total 60% to
75% of the portfolio. The growth strategy includes
high growth securities in areas such as biotechnology,
telecommunication emerging market companies
and small companies from developed countries.
Mutual funds used in this portfolio category
may be diversified funds, sector funds, index
funds, and perhaps even leveraged funds.
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