Asset Allocation Portfolio Model Objectives

Aggressive Portfolio:  The primary objective of the Aggressive Portfolio is capital appreciation.  This portfolio will be 65% to 95% invested in carefully selected equity mutual funds, with the remainder in fixed-income mutual funds and cash equivalents.  An active asset allocation approach is utilized by monitoring the portfolio on a daily basis, rebalancing quarterly, and making changes as market conditions warrant.  It is not the objective of this portfolio to market time, but to take advantage of existing trends and market opportunities.  This portfolio is suitable for investors seeking a growth-oriented portfolio and willing to assume a potentially high level of risk for potentially greater returns.

 

Moderately Aggressive Portfolio:  The primary objective of the Moderately Aggressive Portfolio is to provide long-term capital appreciation by investing in a portfolio of carefully selected equity mutual funds with some diversification through fixed-income mutual funds.  This portfolio will be 50% to 80% invested in equity mutual funds, with the remainder invested in fixed-income mutual funds and cash equivalents.  An active asset allocation approach is utilized by monitoring the portfolio on a daily basis, rebalancing quarterly, and making changes as market conditions warrant.  It is not the objective of this portfolio to market time, but to take advantage of existing trends and market opportunities.  This portfolio is suitable for investors seeking a growth-oriented portfolio with more moderate risk than a portfolio of all equity investments.

 

Moderate Portfolio:  The primary objective of the Moderate Portfolio is capital appreciation, with capital preservation as a secondary objective.  This portfolio will be 35% to 65% invested in carefully selected equity mutual funds, with the remainder invested in fixed-income mutual funds and cash equivalents.  An active asset allocation approach is utilized by monitoring the portfolio on a daily basis, rebalancing quarterly, and making changes as market conditions warrant.  It is not the objective of this portfolio to market time, but to take advantage of existing trends and market opportunities.  This portfolio is suitable for investors seeking moderate growth potential with a measure of downside risk protection.

 

Moderately Conservative Portfolio:  The primary objective of the Moderately Conservative Portfolio is capital preservation and fixed-income, with capital appreciation as the secondary objective.  This portfolio will be 20% to 45% invested in carefully selected equity mutual funds, with the remainder invested in fixed-income mutual funds and cash equivalents. Generally, conservative-style, well-diversified mutual funds are chosen for this portfolio.  An active asset allocation approach is utilized by monitoring the portfolio on a daily basis, rebalancing quarterly, and making changes as market conditions warrant.  It is not the objective of this portfolio to market time, but to take advantage of existing trends and market opportunities.  This portfolio is suitable for investors seeking asset protection and income, with a measure of growth potential.

 

Conservative Portfolio: The primary objective of the Conservative Portfolio is to provide capital preservation and strong current income by investing in a portfolio of carefully selected fixed-income mutual funds with some diversification through equity mutual funds.  Equity oriented mutual funds will account for 10% to 25% of the portfolio, with the remainder invested in income oriented mutual funds and cash equivalents.  Generally, conservative-style, well-diversified mutual funds are chosen for this portfolio.  An active asset allocation approach is utilized by monitoring the portfolio on a daily basis, rebalancing quarterly, and making changes as market conditions warrant.  It is not the objective of this portfolio to market time, but to take advantage of existing trends and market opportunities.  This portfolio is suitable for investors who are most comfortable with a conservative investment approach that preserves capital, minimizes risk, and generates strong current income.

Prepared by R. Cory levetan, CFP®, Investment Advisor Representative, Securities America Advisors.