This is our most conservative portfolio. It is designed for investors where income, and preservation of principal are your primary investment goals. This portfolio is a "tactically" managed bond portfolio which invests 100% in bond mutual funds, such as treasury, government, corporate (including high yield bonds) and international bond funds. Money market funds may also be utilized during defensive periods. The Managed Income Portfolio is an ideal portfolio for retired individuals, and clients who want to invest 100% in bonds while avoiding the volatility of the stock market.

What are Bonds and Bond Mutual Funds?

A Bond is evidence of a loan made to an organization (government, municipality or corporation) from another party. The organization promises to pay the bond holder a specified amount of interest for a certain time and to repay the loan amount (principal) on the bond maturity date.

A Bond Mutual Fund is an investment company, which pools money from investors and uses the money to purchase and manage a diversified portfolio of bonds. Investors buy shares in this managed portfolio. Shares of mutual funds are not traded on the open market, but are purchased from, and redeemed by the mutual fund company itself. The price of shares fluctuates daily with the price of the bonds in the portfolio. The price per share is also referred to as the net asset value (NAV) and is determined once a day at the close of the bond market.

How does the Managed Income Portfolio operate?

When BCA's technical indicators determine that an upward trend in bond prices is established, BCA allocates investors' capital into 1 - 4 bond fund(s). The bond fund(s) selected are ones showing the best performance. Similarly, when BCA's indicators show the upward trend is deteriorating, we become more defensive by allocating capital into the safety of a money market fund. Also, BCA invests for "Total Return" which includes the potential for some price appreciation, plus yield.

How is the Managed Income Portfolio so successful?

First, the funds selected have no transaction costs, or commissions. Secondly, after a thorough analysis, BCA invests in the top performing bond categories and funds. For example, government bonds and high yield corporate bonds do not necessarily perform the same. It's common for high yield bonds to far outperform government bonds during certain periods of our economic cycle. This tactical allocating, over time, greatly enhances the performance of your bond portfolio. BCA's clients consistently earn a high total return, while maintaining a high level of safety.

What kind of performance can be expected?

Over any 5 year time period (full market cycle), BCA's Managed Income Portfolio is designed to achieve an average annual gain of 6 - 8% per year net of fees. Some years we'll have gains in excess of 10%, while some years, gains we be minimal and even a loss may occur.

^{Disclosure: High yield debt securities may offer higher yields, but also carry greater risk of default and greater volatility.}