Trade Log Combination Portfolios

Transcription

1 HIDDEN TEXT TO MARK THE BEGINNING OF THE TABEL OF CONTENTS Trade Log Combination Portfolios LPL Financial Research As of April 10, 2017 Table of Contents Absolute Return Diversified Plus: Tactical Quad-Core Balanced: Tactical Quad-Core Income: Tactical Tactical Opportunities Diversified Plus: Tactical... 5 Overview LPL Financial Research is making changes to the asset allocation within the Model Wealth Portfolios (MWP). In the Quad-Core: Balanced portfolio, we are changing the equity implementation. We do not expect risk profiles to change meaningfully as a result of this trade. We are opportunistically reducing our holdings in dividend growth-focused equities, which have performed well year to date, to lock in some relative gains and to reallocate to some of our favored tactical ideas. Specifically, the proceeds are being allocated to two sectors that we favor, technology and financials, which should also help to increase our up capture in periods of rising interest rates. These changes may positively contribute to achieving the portfolio s mandate of outperformance in rising rate environments. Overall, we initiated the following: Summary Of Changes Quad-Core: Balanced Reduce dividend growth equities Initiate technology sector equities Initiate financial sector equities null Member FINRA/SIPC Page 1 of 7

2 Absolute Return Diversified Plus Portfolios ishares MSCI USA Minimum Volatility ETF USMV Large Blend 7.0 T. Rowe Price Capital Appreciation PRWCX Balanced (Nontraditional) 8.0 Credit Suisse Floating Rate Hi Inc Instl CSHIX Bank Loans 12.0 DoubleLine Total Return Bond Fund DBLTX Mortgage-Backed Securities 19.0 Income with Moderate Growth RidgeWorth Fds Investment Grade Tax-Exempt Bond Fund Class I STTBX Intermediate-Term Municipal Bond 6.0 Invesco Muni Opps. Trust Common 1 VMO Long-Term Municipal Bond 4.0 Dreyfus Global Real Return I DRRIX Alternative (Other) 7.0 Neuberger Berman Abs Ret Multi-Mgr Instl NABIX Alternative (Other) 5.0 Wells Fargo Advantage Diversified Income Builder EKSDX Alternative (Other) 5.0 Neuberger Berman Long Short Instl NLSIX Long/Short 10.0 ishares 7-10 Year Treasury Bond IEF Long Government 8.0 CASH CASH CASH 9.0 LPL Financial Member FINRA/SIPC Page 2 of 7

3 Quad-Core Balanced Portfolios PowerShares QQQ QQQ Large Growth 3.0 WisdomTree US Dividend Growth Fund DGRW Large Growth 13.0 Vanguard Total Stock Market ETF VTI Large Blend 7.0 Global X MLP & Energy Infrastructure ETF MLPX Sector (Energy) 5.0 Financial Select Sector SPDR XLF Sector (Financials) 6.0 Vanguard Information Technology ETF VGT Sector (Information Technology) 4.0 American Beacon Balanced Y ACBYX Balanced 10.0 T. Rowe Price Capital Appreciation PRWCX Balanced (Nontraditional) 15.0 PIMCO Investment Grade Corp Bd P PBDPX Intermediate-/Long-Term Bond 12.0 Vanguard Total Bond Market ETF BND Intermediate-/Long-Term Bond 5.5 SPDR Blackstone/GSO Senior Loan ETF SRLN Bank Loans 6.0 ProShares Short S&P500 SH Alternative (Other) 3.5 SunAmerica Flexible Credit W SHNWX Nontraditional Bond 7.0 CASH CASH CASH 3.0 Growth with Income LPL Financial Member FINRA/SIPC Page 3 of 7

4 Quad-Core Income Portfolios PIMCO Investment Grade Corp Bd P PBDPX Intermediate-/Long-Term Bond 10.0 ishares iboxx $ Invest Grade Corp Bond LQD Long High-Quality Bond 6.0 AllianzGI Short Duration High Inc P ASHPX High-Yield Bond 10.0 Credit Suisse Floating Rate Hi Inc Instl CSHIX Bank Loans 6.0 DoubleLine Total Return Bond Fund DBLTX Mortgage-Backed Securities 25.0 BlackRock Strategic Income Opps Instl BSIIX Strategic Income 10.0 Market Vectors Intermediate Muni ETF ITM Intermediate-Term Municipal Bond 5.0 ProShares Ultra Short S&P SDS Alternative (Other) 3.5 Angel Oak Multi-Strategy Income Fd Inst Shs ANGIX Multisector Bond 10.5 SunAmerica Flexible Credit W SHNWX Nontraditional Bond 10.0 CASH CASH CASH 4.0 Income with Moderate Growth LPL Financial Member FINRA/SIPC Page 4 of 7

5 Tactical Opportunities Diversified Plus Portfolios Aggressive Growth Vanguard Total Stock Market ETF VTI Large Blend 95.0 CASH CASH CASH 5.0 LPL Financial Member FINRA/SIPC Page 5 of 7

6 Investment Objectives Income with Moderate Growth Emphasis is placed on current income with some focus on moderate capital growth. Growth with Income Emphasis is placed on modest capital growth. Certain assets are included to generate income and reduce overall volatility. Aggressive Growth Emphasis is placed on aggressive growth and maximum capital appreciation. This investment portfolio has a very high level of risk and is for investors with a longer time horizon. This portfolio is considered to have the highest level of risk. IMPORTANT DISCLOSURES Investors should consider the investment objectives, risks, charges and expenses carefully prior to investing. The prospectus contains this and other information. You can obtain a prospectus from your financial representative. Read carefully before investing. Value stocks can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies. Stock investing involves risk including loss of principal. Small Cap stocks may be subject to higher degree of risk than more established companies securities. The illiquidity of the Small Cap market may adversely affect the value of these investments. High Yield/Junk Bonds are not investment grade securities, involve substantial risks and generally should be part of the diversified portfolio of sophisticated investors. Investing in real estate/reits involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of this program will be attained. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and are subject to availability and change in price. Precious metal investing involves greater fluctuations and potential losses. Mid-capitalization companies are subject to higher volatility than those of large-capitalized companies. International and emerging market investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. Government bonds and Treasury bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. Structured products typically have two components; a note and a derivative and a fixed maturity. They are complicated investments intended for a buy and hold strategy and offer protection from downside risk in exchange for forging some upside potential to achieve that protection. Principal protection may vary from partial to 100 percent. Commodity-linked investments may be more volatile and less liquid than the underlying instruments or measures, and their value may be affected by the performance of the overall commodities baskets as well as weather, geopolitical events, and regulatory developments Investing in structured notes is not equivalent to investing directly in the underlying securities or index and carry risks such as loss of principal and the possibility that you may own the referenced asset at a lower price, due to economic and market factors that may either offset or magnify each other. At maturity, if the derivative turns out to be valuable, the investor can gain exposure to the upside of that index. Principal Risk: An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks: not diversified, the risks of price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and Index tracking error. The fund s concentrated holdings will subject it to greater volatility than a fund that invests more broadly Nontraditional investments mutual fund strategies are subject to increased risks due to the use of derivatives and/or futures. Nontraditional investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity. Investing in MLPs involves additional risks as compared with the risks of investing in common stock, including risks related to cash flow, dilution, and voting rights. MLPs may trade less frequently than larger companies due to their smaller capitalizations, which may result in erratic price movement or difficulty in buying or selling. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment, including the risk that an MLP could lose its tax status as a partnership. Additional management fees and other expenses are associated with investing in MLP funds. Forward Price To Earnings is a measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period. Investing in alternative investments may not be suitable for all investors and involves special risks such as risk associated with leveraging the investment, potential adverse market forces, regulatory changes, and potential illiquidity. There is no assurance that the investment objective will be attained. The strategies employed in LPL Financial Member FINRA/SIPC Page 6 of 7

7 the management of alternative investments may accelerate the velocity of potential losses. Mortgage-backed securities are subject to credit, default, prepayment risk that acts much like call risk when you get your principal back sooner than the stated maturity, extension risk, the opposite of prepayment risk, market and interest rate risk. This research material has been prepared by LPL Financial. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity. Not FDIC or NCUA/NCUSIF Insured No Bank/Credit Union Guarantee May Lose Value Not Guaranteed by any Government Agency Not a Bank/Credit Union Deposit Member FINRA/SIPC Page 7 of 7 RES Tracking # (Exp. 04/18)