Income and Growth

OBJECTIVES

The BWFA Income and Growth model emphasizes income needs over growth. Returns from investments provide both income for current consumption and a level of “downside” protection in a declining market. This model is designed to suit investors who are low risk takers primarily concerned with current income. Investors using this model are generally not overly concerned about growing their wealth.

INVESTMENT DETAILS:

Portfolios following this model are invested primarily in income-producing securities intended to provide income with sufficient growth to maintain a consistent inflation-adjusted income level. The significant income orientation of the model seeks stable income with relatively low risk to capital. The modest emphasis on growth in this model orients the portfolio to stocks of companies experiencing high earnings growth, strong revenue growth, and a sustainable competitive advantage. Equity investments in this model consist of large dividend-paying stocks and large-capitalization growth stocks. A portion of portfolio assets is allocated toward international bonds. The international bonds we seek represent institutions outside the United States that meet our investment criteria. This model also holds a modest allocation to liquid assets.

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 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.