DIVERSIFIED INCOME STRATEGY
Objective: Generate annual dividend income of up to 9% +/-. Stay invested 100% of the time by rotating into and out of securities as needed to help maintain a steady income.
Overview: Hold higher-yielding liquid securities (stocks, ETFs (Exchange Traded Funds), CEFs (Closed-End Funds, and Money Market Funds), and Covered Calls for income generation. Securities are subject to market demands, but, as noted below, the objective is income generation and not price appreciation.
Downside Risk Mitigation: Downside risk is mitigated by monthly and quarterly income from dividends plus stop loss settings, based Turner Capital’s proprietary algorithms.
- Maximum of 20 ETFs, CEFs and/or stocks in bull cycles
High-Yielding FDIC-insured holdings in bear cycles
Diversified across multiple market segments.
Generate up to 9% +/- in annual dividend yield
Watch this video to learn more about how the Diversified Income Model works.
Management Approach - Buy and hold (within downside protection parameters) strong, higher-yielding (4% to over 10% dividend yield) Stocks, ETFs, CEFs and Covered Call trades in neutral to bullish-trending markets that are diversified across a wide range of economic conditions. When the market moves into a bearish trend and when there are no strong, higher-yielding ETFs, CEFs or stocks meet the minimum criteria for holding in the portfolio, the manager has the prerogative to move capital into safe FDIC-insured money market funds.
Turner Capital has developed proprietary analysis algorithms that provide the portfolio manager with the following information:
PERFORMANCE - Turner Capital publishes the historical performance of this strategy each week in the Turner Capital "Client Letter". To get a copy of this letter, please fill out the "Start a Dialog" form. IMPORTANT: Past performance provides no guarantee, implied or otherwise, of future returns.
TREND AND CONTINUITY OF TREND - The Turner Capital investment strategy is predicated on the assumption that market and equity trends tend to stay on trend more than they change trend. Therefore, the methodology relies on the mathematical likelihood that a trend will remain reasonably constant until such time as the trend is detected as having reversed. This analysis includes the setting of volatility ranges that each equity has exhibited over at least the past 3 years.
BULL, TRANSITION OR BEAR MARKET CONDITION - The Turner Total Market Index (TMI), in general, is rated by the Turner Capital software system as either in a bullish, transition or bearish trend. A bullish market trend exists when the 200-day moving average of the TMI has a positive slope. A bearish condition exists when the 200-day moving average of the TMI has a negative slope. The market is considered to be "in transition" when the 200-day moving average of the TMI is flat.
DOWNSIDE EXIT - Downside stops are set just below the average of the downside volatility range of each holding in the portfolio.
Moving Into the Market - The portfolio strategy manager has the discretion to have up to 100% of capital invested at all times.
Typical Profile of Holdings - This model focuses ETFs, CEFs and stocks that distribute above average dividends on a monthly or quarterly basis. Two important aspects of each holding are: 1) A consistent and/or growing dividend; and, 2) A reasonably predictable level of volatility.
Portfolio Model Structure - When fully invested, client portfolios following this strategy will be invested in generally less than 20 different equities (ETFs, CEFs and/or stocks) that pay a consistent, higher-than-average dividend, and not more than 20% of capital invested in stocks for Covered Calls. While every effort is made to keep the client's portfolio as diversified as possible, there may be times, depending on market condition, when the investments are not diversified.
Minimum Account Size - $100,000
Fee and Fee Structure - Clients pay a management fee to Turner Capital Investments, LLC. This management fee covers all management services. There are no trade transaction fees. TCI management fees range from 1% to 2% of the net asset value of client account(s). The percentage rate is based, in part, on the aggregated total of an individual client's accounts being managed by TCI (see "Family Discount", below). One-twelfth of the fee is deducted from the client's account(s) monthly.
Family Aggregation for Fee Assessment - When calculating the net asset value of a client's account for the purpose of determining the appropriate management fee, TCI aggregates all the client's personal accounts, plus all of the client's family accounts, such that the aggregate amount of the client plus family accounts are used to get the lowest possible management fee for the client and the family accounts.
Potential Draw-Down - Generally, draw-downs are limited to losses incurred when a stop loss is triggered. The amount of actual loss (peak-to-trough) depends on when the client began following this strategy and the high in his/her account during that time. The average stop loss for holdings in this strategy can run from 2% to 12%. Draw-downs, historically have been in the 5% to 6% range. A draw-down estimate should not be considered the maximum potential loss of capital. A draw-down can occur at any time; and then, at any point in the future, another draw-down can occur. Turner Capital does not warrant or promise or guarantee any maximum potential loss in this or any investment strategy that we manage.