Kendall Capital

Income & Growth Portfolio

The Income & Growth strategy is designed and managed to maintain a high current yield and growth of that income over time, while achieving a moderate amount of capital appreciation. The distinguishing feature of the Income & Growth strategy is its desire for consistently high level of current income, comprised of interest and dividends paid to investors regardless of market conditions.

The Income and Growth portfolio offers investors the advantage of not just relative attractive current income, but the opportunity for increasing future income.

Stable Asset Value Portfolio

Stable Asset Value strategy seeks to preserve and increase the purchasing power value of investors over the long term through strategic investments in a broad array of different asset classes, regardless of current or future market conditions.

The Stable Asset Value does not try to out-guess the markets or forecast future economic events, but rather commits a fixed percentage of its assets to six carefully chosen diverse and “low correlated” investment classes. Such diversification seeks to provide balance, liquidity and profit potential combined with the additional benefits of international diversification.

The six investment categories for the Stable Asset Value strategy include:

1. Precious Metal—gold, silver and other precious metals offer the benefits of owning an asset class that is expected to benefit from an inflationary environment
2. Currency—investments in short term non currency hedged foreign bonds that offer the Stable Asset Value portfolio the differentiation advantage of currency while at the same time receiving a relatively high current income relative to only owning foreign currencies.
3. Natural Resources—low correlated securities that usually behave much differently than the general equity market
4. Aggressive Growth Stocks—allow the Stable Asset Value portfolio to have a stake in any extended bull stock market, but to do so with a limited risk to the overall Portfolio
5. Real Estate—seeks long-term growth through a combination of capital appreciation and current income through the investment in real estate companies as well as companies that derive a substantial portion of revenues or profits from servicing real estate firms
6. U.S. Treasury Bills, Bonds & other US Government Securities—securities issued or guaranteed by the U.S. government or its agencies

Since markets and economic circumstances are constantly changing, the predetermined allocation of the assets invested in this strategy may drift from time to time. We continually monitor the portfolio for such conditions and we rebalance back the portfolio to target percentages. The rebalancing strategy may gain from large, short-term fluctuations in investment prices as it takes profits on investments that have risen in price and adds them to the ones that have fallen in value. Such strategic portfolio adjustments are necessary to provide the Stable Asset Value portfolio with the ability to meet its investment objectives.