Equity Income

OBJECTIVES

The BWFA Income model seeks moderate appreciation of capital as well as above-average current dividend income by using conservative equity investments paying dividends. This model is designed to suit investors who seek both capital appreciation and current income from an equity portfolio. Portfolios invested according to this model may have uncertain short-term investment returns, but the potential for the long-term rate of return is higher than for those of BWFA’s more conservative investment models. The regular dividends paid by the securities in this model help to dampen overall portfolio volatility as well as provide a moderate level of current income.

INVESTMENT DETAILS:

Portfolios following this model typically invest in 30-40 equities of well-established companies paying consistent dividends. The model looks for securities providing a yield that exceeds the composite yield on the securities comprising the Standard & Poor’s 500 Index. The model’s emphasis on growth orients the portfolio to stocks of companies that are capable of experiencing growth in earnings, revenues and dividends, and an industry-leading position. A portion of portfolio assets is allocated toward international equities, representing companies based outside the United States that meet our investment criteria. The portfolio may also help maintain an allocation to income-producing equities with moderate potential growth that meet our investment criteria.

MODEL ASSET ALLOCATION:

INVESTMENT STRATEGY:

Our aim is to create diversified client portfolios that earn favorable investment returns while controlling volatility and risk according to the parameters of each client’s chosen investment model. We work to achieve strong performance over multiple market cycles, relying on the consistent application of a proven investment process. We adhere to an investment philosophy that values both vision and discipline. We do not believe that long-term goals can be met by chasing short-term results. Instead, we focus on the larger picture while remaining mindful of the current environment.