Dynamic Growth Portfolio
Financial Foresight for Long-Term Capital Appreciation
Portfolio Objective
Our Dynamic Growth Portfolio seeks long-term capital appreciation. The portfolio is managed to respond to the dynamically changing market conditions by rotating assets between aggressive growth mutual funds, diversified mutual funds, and total return mutual funds. Its goal is to outperform the S&P 500 Index on an absolute and risk-adjusted basis (over a full market cycle), by utilizing funds that have a moderate to low correlation to the broad stock market.
Portfolio Discipline
Our investment strategy is objective and employs our proprietary RSM model that is both quantitative and computer driven. We use our methodology to rank approximately 350+ no-load mutual funds based on several measures of price momentum and risk. We then invest in the top nine ranked mutual funds. As market conditions change, so will the mutual funds in this portfolio. Up to 20% of the portfolio may engage in non-directional strategies, such as utilizing inverse index mutual funds.
Forming the foundation for this portfolio are five mutual funds from our Absolute Return Portfolio. This 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.
The other component of the Dynamic Growth Portfolio consists of four aggressive growth mutual funds, typically invested in the companies of smaller to mid size companies, emerging markets, international markets, and sectors (i.e. technology, natural resources, etc…). This portion of the portfolio seeks to be opportunistic and obtain high potential returns by utilizing mutual funds that tend to focus on a few industry sectors, or concentrate their underlying portfolio in a few individual holdings. Although these funds tend to have moderate to high portfolio turnover and higher than average volatility, dynamic asset allocation, when properly implemented, enables the advisor to harness their positive features and energize the investor portfolios.
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)
