This new investment strategy … provides downside protection by increasing the cash allocation when weakness in any individual asset class is detected -- a feature that many investors are again clamoring for in light of the last few trading days.
Austin, TX (PRWEB) May 14, 2010
Investors interested in an alternative to a generic bond fund or a diversified bond portfolio have a new conservative investment strategy to consider from MarketTrend Advisors (MTA). The strategy is called MTA Income and it uses MarketTrend Advisors’ proprietary trend-following models and is designed for investors seeking current income and capital preservation with low volatility.
“This new investment strategy uses a tactical asset allocation approach and provides downside protection by increasing the cash allocation when weakness in any individual asset class is detected -- a feature that many investors are again clamoring for in light of the last few trading days,” said Garrett Beauvais, MarketTrend Advisors’ MTA Income portfolio manager.
The MTA Income strategy invests in a variety of income-producing asset classes which may include investment-grade U.S. corporate bonds, high yield U.S. corporate bonds, U.S. treasuries, mortgage-backed bonds, sovereign debt bonds including emerging market bonds, real estate investment trusts and oil and gas limited partnerships.
The portfolio primarily holds ETFs and closed end funds and may also invest in U.S.-listed large cap stocks that provide consistently high dividend yields. The strategy averages about one trade per month and usually holds seven to 10 positions. The MTA Income investment strategy is designed to complement existing equity investments and carries a 1% annual management fee with a minimum account size of $50,000.
“We expect that over the course of a typical year MTA Income will pay out 40-50 dividend payments equivalent to a yield of 5% to 6% based on current valuations and interest rates,” adds Beauvais. “We found that our clients were seeking high yields but they did not want to be locked into income investments that matured in five, 10, or 20 years nor did they want to be heavily invested in junk bonds given the enormous run up that occurred over the last year. Now, with the introduction of MTA Income, we are able to provide them with the high yields, capital protection, low volatility and liquidity they are looking for.”
About MarketTrend Advisors:
MarketTrend Advisors is a Texas-based S.E.C.-registered investment advisor serving individual investors, high net-worth investors and other registered investment advisory firms. An independent, fee-only advisor, MarketTrend Advisors is a specialist in ETF investing and has been offering all-weather ETF portfolios since 2005. MarketTrend Advisors aims to deliver strong returns in all market conditions through superior risk management. MarketTrend Advisors’ innovative strategies and tactical asset allocation models helped grow the firm’s assets under management 30%+ in 2008-2009, a period during which most investors suffered significant losses. For more information, visit http://www.markettrendadvisors.com.
MarketTrend Advisors, Ltd. is an independent, S.E.C.-registered investment advisor. MTA is not registered as a broker or dealer and no partners or employees are affiliated with any broker or dealer. See our S.E.C. Form ADV, Part II for official declarations. The MTA Income Investment Service assumes risk and no assurance is made that investors will avoid losses. No representation is made that clients will or are likely to achieve profits or incur losses comparable to those shown. Past performance may not be indicative of future results. No assumption should be made that the future performance of any specific investment or investment strategy will be profitable or equal to corresponding past performance levels.
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