Momentum Portfolio - BCA Investment Portfolios

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Overview of the Momentum Portfolio

A dynamic growth portfolio, which invests in high momentum mutual funds (market leaders). The basic premise is "There is a bull market going on some where in the world." This portfolio attempts to identify, and then deploy capital into fund categories showing positive price momentum. This is a sophisticated growth portfolio for clients who want generous growth while keeping market risk moderate to low (mostly pre-retirees).

What is a Stock Mutual Fund?

A Stock Mutual Fund is an investment company which pools money from investors and uses the money to purchase and manage a diversified portfolio of stocks. 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 stocks 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 stock market.

How does the Momentum Portfolio operate?

When BCA's technical indicators determine that an upward trend in prices is established. The Momentum Portfolio allocates investors' capital into the best performing fund categories and funds. Similarly, when BCA's indicators show the upward trend is deteriorating, capital is allocated into the safety of a money market fund. Remember, at any given time, there usually is a bull market going on some where in the world. In addition, BCA monitors over 30 different fund categories and over 300 funds in our attempt to identify moneymaking opportunities. At any given time, we may be invested in up to 5 different investment categories.

How is the Momentum Portfolio so successful?

BCA deals directly with a no-load fund family, or a trust company, where funds have no transaction costs, or commissions. Also, BCA's tactical asset allocation strategy not only improves returns, but more importantly reduces market risk. BCA does not attempt to predict what the market will do - we are trend followers - letting the market tell us how to be invested. Therefore, BCA does not enter the stock market at the exact lows, nor exit at the exact highs, but captures "the meat of the market move." BCA's tactical strategy of investing in fund categories displaying positive price momentum, then deploying capital into funds exhibiting superior relative strength (top performing funds), is a highly profitable strategy.

What kind of performance can be expected?

Over any 5 year time period (full market cycle), BCA's Momentum Portfolio is designed to gain 8-14% per year net of fees. In other words, your money should double about every six years. By using BCA's tactical investment style (active money management), it is possible to make money in any market environment. There's always a bull market going on some where in the world. Some years, returns will be minimal, and even a losing year can occur, however, other years should see substantial gains in excess of 20%.

Managed Income | Income & Growth | Momentum Portfolio

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Brian R. Carruthers & Associates

BCA | A Fee-Only Registered Investment Advisory Firm Since 1990

301 Forest Avenue · Laguna Beach, California 92651-2115 USA
Telephone: 1-949-464-1900 · Facsimile: 1-949-464-1400 · Contact

CFP^®, Certified Financial Planner™ and are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.

CMT^SM and Chartered Market Technician^SM designations are awarded and permitted to use by full members of the MTA. The CMT Program is administered by the Accreditation Committee of the Market Technicians Association (MTA).

The National Association of Active Investment Managers is a professional organization of registered investment advisors who believe in active management of client assets to reduce the risk of down markets and to structure client portfolios to produce high risk adjusted returns.

This page last modified: 2008-04-01T08:50:37-0800

Momentum Portfolio - BCA Investment Portfolios

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