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Managed Asset Allocation
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Bismarck Investment Group, LLC provides Managed
Asset Allocation Services for all levels and types of Investors, large
and small, and in a manner distinctly different from what most people
have become accustomed to. The basic premise is that Asset
Allocation is a personal planning tool that helps assure that an
investment portfolio is "tuned in" to the goals, objectives, and
relevant time frames of each individual investor.
Bismarck Investment Group, LLC customizes Investment Portfolios
with an Asset Allocation that never includes "one-size-fits-all"
Conventional Mutual Funds and other Investment Products! A true Asset
Allocation plan just cannot include products and an Asset Allocation
Mutual Fund is an oxymoron!
You absolutely must have a thorough understanding of:
for investment
success... defined realistically as personal goal attainment.
Click the underlined links above for a complete discussion of each of
these important concepts.
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Asset
Allocation based on The Working Capital Model allows investors:
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To never
be "in" or "out" of the Market based upon guesswork as to market
direction. A person should always be investing in new opportunities and taking
reasonable profits when they are available.
- To successfully manage and discipline themselves to follow a
consistent strategy. Each selected security must contribute to goal
achievement and be consistent with the client's risk tolerance.
Normal Stock Market Volatility is cherished for the opportunities it
creates in both directions!
- To select stocks
with short term growth as the only objective, while Bonds, Preferred
Stocks, Municipal Bonds, etc. are expected to produce income and
nothing else. The Bismarck Investment Group, LLC strategy seeks a
10% net/net gain, taken as quickly as possible, in either class of
security.
NOTE: The 10% target
is an annual portfolio goal, not a guarantee or an absolute target for
every trade... in some environments
four 7%ers may be easy while three tens are impossible!
CEFs are used for small accounts and for Fixed Income.
(See Discussion of CEFs.)
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Just as Asset Allocation is the Investment Planning step,
hands on Investment Management with consistent rules, disciplines, and
expectations makes long term growth and goal achievement more likely.
Some basics in a Bismarck Investment Group, LLCs Managed Asset
Allocation Program include:
o attempt to follow
every Equity, or experimentation with fancy strategies, gimmicks,
indices, or options. We specialize in trading NYSE, B+ or better rated, dividend paying
companies.
Historically, I estimate that the average holding period for a
stock is between 4 and 7 months.
An initial "buy" target is a price 20% below the stock's high of the
last twelve months. Maximum positions are not taken initially so
that more of the security can be purchased if it moves to lower
levels.
Thus,
Bismarck Investment
Group, LLCs' clients are never buying
stocks at historically high prices.
A "sell" target is
established at a price approximately 10% above cost basis
(commissions are a piece of cost basis). When the price approaches
this level, it is closely monitored to assure that a profit taking
opportunity is not missed.
The shorter the holding period, the more quickly we sell, even for a
smaller profit!
Generally speaking, stocks are treated like inventory on the shelves
of any retail store.
An acceptable "mark up" is assigned to each item and
accepted without question when a customer appears. New inventory is
then found to replace the old. This is simply GREED CONTROL, an
important feature, unencumbered by hindsight.
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Allocation (divisible by 5 and including only two Classes of Investment
Securities) is acceptable in a Bismarck
Investment Group, LLC' Managed Portfolio, UNLESS Investment Manager Robert Oyler finds it to be an inappropriate
allocation for the individual client. Every prospective
client is interviewed personally to assure an eyes wide open set of
expectations, and there is an Asset Allocation Formula with an
appropriate risk level inside.
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- Bismarck Investment Group, LLC's Fee Schedule includes
Investment Management Fees Only. Fees are normally deducted directly from the
investment account, BUT not in advance, which is the industry norm.
- The Portfolio Size figure includes all of
the accounts in a Management Relationship...YES, you and your
relatives.
- The Management Fee Schedule is based on
Bismarck Investment Group, LLC's standard operating procedures and brokerage relationship.
Special arrangements that increase the paperwork and/or reduce
operating efficiencies are not in the best interest of clients and
will only be considered under exceptional circumstances... and at a
much higher fee.
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Investment Management Fees
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Average Size |
Annual Charge |
under $500,000 |
1.50%
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| 500,000 and up |
1.00% |
| Fixed Income |
.75%
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- Bismarck Investment Group, LLC's' Managed Portfolios range in
Asset Allocation from 100% Equity to 100% Fixed Income, and since individual securities
make up the bulk of the securities held, portfolios are very flexible
and easy to alter as a person's situation changes.
- Asset Allocation adjustments are never made in an effort to
"time the market" or just to "look smart" on
client monthly statements!
- The pie charts below do not represent fixed portfolio choices.
They are merely samples. Any figure (divisible by 5%) is possible,
and actual portfolios will vary slightly from "the Plan"
dependent on cash flow and availability factors in the Stock Market.
- Any account with less than 20% in Equities is considered an
"income" portfolio for analysis (and for billing) purposes.
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A Conservative Account
25% Equities
75% Fixed Income |
An Average Account
60% Equities
40% Fixed Income |
An Aggressive Account
80% Equities
20% Fixed Income |
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