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THREE DISTINCT INVESTMENT PROGRAMS
Supervised Portfolio Management Account (SPM)
Accounts of individual securities under the direction of professional portfolio managers, who are identified, monitored, and sub-contracted by NEW ENGLAND CAPITAL. Multiple investment styles available (Growth, Value, Balanced). Minimum account size ranges from $250,000 to $1,000,000, depending on manager selection.
Strategic Funds Account (SFA)
Diversified, actively managed portfolios of no-load mutual funds utilizing a tactical asset allocation investment strategy. Minimum account size is $50,000.
Strategic Sectors Account (SSA)
Actively managed aggressive growth portfolios investing in concentrated positions in industry-specific "sector" mutual funds (technology, finance, energy, healthcare, etc.), index funds or exchange-traded options (S.P.D.R.'s). Minimum account size is $50,000.
Supervised Portfolio Management (SPM) Supervised Portfolio Management (SPM) accounts provide our clients with the ability to command the expertise and attention of nationally recognized and respected portfolio managers who carefully select and manage accounts of individual securities. In many instances, this level of sophisticated and specialized management would only be available to large, institutional investors. Obviously, just as no two investors are alike, no two portfolio managers are alike.
Some favor a conservative investment strategy, stressing capital preservation and current income; others specialize in seeking out growth opportunities where income is a secondary consideration. The NEW ENGLAND CAPITAL advisor provides both guidance in determining which manager is right for the client as well as on-going supervision of management performance. Management fees are based on the market value of the account. The client's investment advisory needs, as well as other objectives and risk tolerances are first reviewed with a NEC advisor and a particular portfolio manager is selected after a discussion of compatible investment philosophies.
Accounts are managed on a discretionary basis. Certain limitations or restrictions can be applied above and beyond a particular manager's strategy and would be submitted in writing to the manager. Modifications, within reason, can always be made. Monthly custody statements are provided by Gage-Wiley & Co., Inc. detailing all account transactions, including but not limited to purchase and sales, interest and dividend receipts, capital changes and stock splits, transfers and deposits and withdrawals.
NEW ENGLAND CAPITAL provides the client with quarterly appraisals and performance reports as well investment commentary. NEW ENGLAND CAPITAL and Gage-Wiley have established relationships with a wide range of professional managers, each offering an individual approach to portfolio management. Some names are sure to be familiar while others are not often available to retail clients and thus may be relatively unknown to the individual investor:
- Frontier Capital Management
- Taylor Investments
- The Burney Company
- Estabrook Capital Management
- Valicenti Advisory Services
- Zacks Investment Management
- Brandywine Asset Management
- UAM Investment Services
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Strategic Funds Account (SFA)
A NEW ENGLAND CAPITAL Strategic Funds Account (SFA) is a diversified, actively managed portfolio of no-load mutual funds. The primary investment goals are to reduce overall volatility by investing in a diversified group of funds and to simultaneously enhance performance, as compared to other diversified strategies, by overweighing in selective funds where the intermediate to long-term market trend favors a fund's specific style or strategy.
The SFA strategy focuses on the market's internal rotation, and seeks to identify when different management styles or strategies move in and out of favor. This rotation of ÒfavoritismÓ can last anywhere from six months to three years, and is usually a major contributor to the relative outperformance of specific funds during that time period.
Specific portfolio allocations are typically diversified among no-load mutual funds whose investment management style or specialty is focused on one of the following: large-cap, mid-cap, small-cap growth or value, foreign, emerging markets, or fixed income.
Individual portfolios may be invested differently depending on the risk/return objectives of the investor.
SFA Investment Philosophy and Assumptions
- No-Load mutual funds offer an efficient, convenient, and cost-effective investment vehicle.
- Investment performance is enhanced through tactical allocation among different asset classes and management styles.
- Portfolio volatility is reduced by investing in a diversified group of no-load mutual funds.
- Intermediate and long-term trends of specific asset classes and management "styles" are identifiable through qualitative and quantitative analysis.
- Over short to intermediate periods, broad market and industry trends have greater influence on investment performance than individual security selection.
- The timely purchase of well managed, top-performing mutual funds of different management styles and objectives can be identified through fundamental and technical research.
- Change is permanent. Recognition of that fact is the key to investment success.
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Strategic Sectors Account (SSA)
A NEW ENGLAND CAPITAL Strategic Sectors Account (SSA) is an actively managed portfolio of four to six industry-specific sector funds, index funds, or exchange-traded options (S.P.D.R.'s). The primary investment goal is to outperform the market by overweighing in sectors where the short and intermediate-term outlook is favorable.
The SSA strategy focuses on the market's internal rotation, trying to identify when different industry sectors move in and out of favor. This rotation of ÒfavoritismÓ can last anywhere from two months to two years and is usually a major contributor to the relative outperformance of specific funds during that time period.
Specific portfolio allocations are typically diversified among five sectors, with no one sector having more than a 40% weighting. The portfolio will almost always be fully invested.
SSA Investment Philosophy and Assumptions
- Sector funds offer an efficient, convenient, and cost-effective investment vehicle.
- Investment performance is enhanced through tactical allocation among different sectors of the economy. The portfolio will almost always be fully invested in the attractive sectors.
- The portfolio is invested only in specific sectors, therefore performance is less dependent on the overall market.
- Short and intermediate-term trends of specific sectors are identifiable through qualitative and quantitative analysis.
- The timely purchase of well managed sector funds can be identified through fundamental and technical research.
- Change is permanent. Recognition of that fact is the key to investment success
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