Absolute Return Portfolio
Positive Annualized Returns Regardless of Market Conditions
Portfolio Objectives
To achieve moderate returns with a low correlation to the broad stock market as measured by the S&P 500. This portfolio seeks positive annualized returns over a full market cycle, regardless of market conditions. The Absolute Return Portfolio is designed to complement a prudent investor’s overall core portfolio by reducing risk and volatility through a diversification and asset allocation to investment classes that have a low correlation to the overall stock and bond markets. This portfolio is also appropriate for the conservative investor.
Portfolio Discipline
This actively-managed, total-return program, is for investors who are interested in minimizing risk and obtaining moderate returns through a variety of strategies and asset classes. Typically, this portfolio consists of 4 to 6 balanced, no-load mutual funds which could be invested in a blend of common stocks, preferred stocks, utilities, convertibles, bonds, REIT’s (Real Estate Investment Trusts), commodities, TIPs, money market, and cash. As the trends in the market, the economy, and the world change, so will the mutual funds in this portfolio.
At times, this program may contain mutual funds that engage in options or use other derivatives (such as futures contracts)in order to achieve additional yield enhancement. During periods of extreme market stress, portions of this portfolio may be invested in no-load mutual funds that consist of a mix of defensive assets (treasuries, gold, cash, silver, multi-sector bond funds, Swiss franc assets, etc…) or use non-directional strategies, such as short selling or merger arbitrage. Rich Investments, Inc. portfolio managers utilize dynamic asset allocation to guide mutual fund selection in this program. Mutual funds are chosen based on current market conditions, interest rates and currency exchange rates, geopolitical conditions, and economic trends.
Fee Schedule
The fee assessed shall be calculated on the basis of the total market value of the assets under Rich Investment Inc.’s supervision at the close of business on the last day of each quarter.
Minimum Investment: $100,000
Portfolio Manager: Matthew R. Falvey
Custodian: Schwab Institutional
Fee Structure:
$100,000 – $249,999
billed quarterly at 0.40% (1.6% annually)
$250,000 – $499,999
billed quarterly at 0.35% (1.4% annually)
$500,000 – $999,999
billed quarterly at 0.30% (1.2% annually)
$1,000,000 and above
billed quarterly at 0.25% (1.0% annually)
