The Bond Account seeks capital preservation and income. The firm will only invest in bonds of corporations listed in the Ward & Company Index and U.S. Federal Government obligations. A major
portion of these securities are selected based on current income, yield to maturity, length of maturity, and the financial rating of individual bonds. Since the account is an income orientated account, it is
designed to hold the bonds until they are redeemed by the issuer. Thus, the primary goal is to hold until maturity and not to trade the bonds themselves. Investment Policies: The Bond Account buys and
sells bonds diversified among individual companies and industries. Because the account is designed more for income potential, different bonds are blended into the account to boost the overall yield
generated. The risk posture of each client is evaluated to determine what type of bonds to be placed into the account. When investing for income, the firm focuses on the bonds of companies with demonstrated
earnings capability and creditworthiness. Although consistent and steady income is the primary objective of this account, every effort is made to determine an appropriate time to invest in a particular
issue. This is done to increase the yield of the account over time. When seeking to achieve its objectives, the firm invests in bonds the portfolio managers believe offer the potential for income generation and
safety of principal. Some of the factors considered when investing in corporate bonds are the nature and scope of a company's business, cyclical conditions, retention of earnings, price stability, debt structure
and the big block activity reported on the ticker tape. Adjustments to bond portfolios will be made to achieve higher yields and reduce risk, when possible. Bond accounts can be customized to meet individual
client needs. Distributions of income, from the portfolios, can be setup to meet the requirements of each individual client. Semiannual, quarterly, or monthly distributions of income are the most
common. Portfolios which require specific calendar distributions of income will contain bonds of companies or U.S. Government securities whose quarterly dividends meet the objectives desired. The management fee
associated with a bond account is a one time charge of no more than 2 1/2 percent of the entire dollars under management. There is no ongoing annual fee. When bonds mature and new bonds are purchased the fee
of no more than 2 1/2 percent will apply. |
