November 3, 2017
Strategy and Portfolio Allocation
Our investment objective is to provide income and a
long-term increase of capital. This means we access a lot of areas of the
domestic and international markets to find the best opportunities where to
invest. We employ a consistent portfolio management process that allows for
flexibility and customization to your specific accumulation goals. These
portfolios seek intermediate- and long-term capital appreciation appropriate
for your risk budget.
Strategy and Portfolio Allocation
The Fund will attempt to achieve its investment
objective by investing in a wide range of U.S. stocks. Another part where we
will invest heavily is real estate. We have found some big lands in the south
of Florida. Our professionals predict that the value of these lands will
increase drastically in the following years. Precious metals like gold, silver,
chrome etc is another market we will be investing on. We feel that this market
is going to explode in the future. What is left then from the fund will be 20%
invested in cryptocurrency and the other part will be kept in cash.
Cryptocurrency is an exploding market. The value of
bitcoin for example has been increasing a lot these last years. We think it is
going to increase a lot more. So, we are investing 70% on Bitcoin. The other
30% will be invested on Litecoin.
In the “Portfolio
Turnover” section you will not be able to give a number yet – you are just
starting your fund! Simply describe here your plan for rebalancing the
portfolio, which you need to do regularly. For the second assignment of this
course you will be reporting on the results of your fund, and the requirement
will be that you have had a turnover of at least 50% of the initial portfolio
Principal Risks of the Fund
affect the Fund’s performance. The Fund’s share price changes daily based on
changes in market conditions in response to economic, political and financial
developments. The direction and extent of those price changes will be affected
by the financial condition, industry and economic sector, and geographic
location of the securities in which the Fund and the Underlying Funds
invest. The Fund
is not federally insured or guaranteed by any government agency. You may lose money by investing in the fund.
ability of the Fund to meet its investment objective is directly related to the
allocation of the Fund’s assets. CLS may allocate the Fund’s investments so as
to under-emphasize or over-emphasize investments under the wrong market conditions,
in which case the Fund’s value may be adversely affected.
Risk: Investments in securities in general are
subject to market risks that may cause their prices to fluctuate over time. The
Fund’s investments may decline in value due to factors affecting securities
markets generally, or particular countries, segments, economic sectors,
industries or companies within those markets. The value of a security may
decline due to general economic and market conditions that are not specifically
related to a particular issuer.
Turnover Risk: The risk that a high portfolio turnover rate has the potential to result
in the realization by the Fund and distribution to shareholders of a greater
amount of gains than if the Fund had a low portfolio turnover rate, which may
lead to a higher tax liability.
Medium Issuer Risk: Investments in Underlying Funds that own small and medium
capitalization companies and direct investments in individual small and medium
capitalization companies may be more vulnerable than larger, more established
organizations to adverse business or economic developments.