BSAN Elite Dividend Annual Report Financial Professional Use Only

Transcription

1 BSAN Elite Report Financial Professional Use Only January 2016 Stocks generally declined moderately in December, with the benchmark S&P 500 Index declining 1.58%. The BSAN Elite Portfolio declined 1.19% (gross of management fees). For 2015 the portfolio trailed the S&P 500 slightly, gaining 0.21% vs. 1.38% for the index (gross of fees). Obviously, these results are reduced by the management fees paid by a client. Performance was hurt by poor results from our energy holdings (Conoco Phillips, Chevron, and Exxon Mobil) as well as industrial companies Parker Hannifin and WW Grainger. Hormel Foods was our largest winner, followed by defense firm Harris Corp. Details on the 2015 performance of all portfolio holdings are listed on page 2. The soft market in December gave way to a poor start for 2016 with the market experiencing the worst decline for the first week of the year ever. Major indexes lost about 6% for the week. The BSAN Elite Portfolio declined approximately 4.6%. We are not immune to market price fluctuation, but pleased with the lower volatility of the strategy compared to the general market. Call us at to learn more about the BSAN Elite Portfolio. Investment Methodology We invest in companies that have exhibited a strong commitment to increasing the dividend payment to shareholders on a regular basis. Breiter Capital s quantitative selection criteria also focus on measures of profitability and dividend yield to identify companies we believe will provide a strong total return experience for investors. Most portfolio holdings will have 25 years of consecutive dividend payments without reduction. The minimum length of dividend payment history is 5 years. We target a portfolio of holdings, and generally will have 25 positions when fully invested. Proactive risk control techniques are employed to raise a moderate level of cash when our indicators signal that markets are at a heightened risk of decline. The result is a portfolio which exhibits desirable characteristics, such as: High total return potential through long-term capital appreciation and a rising dividend income stream. Lower than average risk. Potential, given enough time, for an income stream from dividends to exceed the yield historically available on traditional income producing investments. Founded in 1992, Breiter Capital Management is dedicated to providing independent, disciplined rules based money management using proven strategies while controlling risk. Portfolio Management Thomas Breiter President, Portfolio Manager Founder of Breiter Capital Management 27 years investment experience BA (Business Admin.) Columbia College Geoffrey Niebaum Vice President, Portfolio Manager Breiter Capital Management since years investment experience BA (Business Admin.) Saint Leo University MBA University of South Florida

2 Current BSAN Elite Holdings as of December 31 st, Price 2015 Total Return 5 yr. Increase Name Symbol Yield AFLAC AFL Financials -1.93% 0.54% 2.50% 6.70% Blackrock Inc. BLK Financials -4.54% -2.53% 2.40% 16.90% Colgate-Palmolive CL Consumer Staples -3.51% -1.56% 2.30% 8.10% ConocoPhillips COP Energy % % 5.50% 12.10% Chevron CVX Energy % % 4.70% 8.50% W.W. Grainger GWW Industrials % % 2.30% 17.20% Hormel Foods Corp HRL Consumer Staples 53.20% 54.47% 1.50% 18.90% Harris Corp HRS Information Technology 21.33% 24.04% 2.40% 15.60% IBM IBM Information Technology % % 3.70% 14.90% Intel INTC Information Technology -5.25% -2.21% 2.80% 8.79% Lockheed Martin Corp LMT Industrials 12.33% 16.18% 3.00% 18.40% 3M MMM Industrials -8.18% -5.91% 2.60% 14.30% Altria MO Consumer Staples 18.87% 23.11% 3.90% 8.40% Microsoft MSFT Information Technology 18.65% 22.69% 2.60% 18.60% Parker Hannifin PH Industrials % % 2.40% 18.70% Qualcomm QCOM Information Technology % % 3.90% 20.20% Stryker Corp SYK Health Care -1.12% 0.01% 1.40% 18.10% Target TGT Consumer Discretionary -3.61% -1.60% 3.10% 20.80% T. Rowe. Price Group, Inc. TROW Financials % % 2.70% 14.00% VF Corp VFC Consumer Discretionary % % 2.30% 17.00% Walgreens Boots Alliance WBA Consumer Staples 12.05% 13.61% 1.70% 17.40% Wal-Mart Stores WMT Consumer Staples % % 3.30% 10.60% ExxonMobil XOM Energy % % 3.60% 10.60% Yum Brands YUM Consumer Discretionary 0.97% 2.50% 2.50% 13.90% Average -4.94% -2.20% 2.88% 14.53% Data as of December 31, 2015 S&P % 1.38% 2.20% 13.80% * YTD Price change is averaged for all holdings equal weighted, and does not reflect the cost of any management fees or transaction costs, and should not be interpreted as the result of any investment portfolio.

3 Portfolio Review Actions 2015 YTD Ticker Former Ticker Former AFLAC Inc. AFL $1.64 $ % Altria Group MO $2.26 $ % BlackRock Inc. BLK $8.72 $ % Microsoft Corp MSFT $1.44 $ % Colgate-Palmolive CL $1.52 $ % Parker PH $4.10 $ % ConocoPhillips COP $2.96 $ % QUALCOMM Inc. QCOM $1.92 $ % Chevron CVX $4.28 $ % Stryker Cop SYK $1.52 $ % Grainger (W.W.) GWW $4.68 $ % Target Corp TGT $2.24 $ % Hormel Foods HRL $1.16 $ % T.Rowe Price Group TROW $2.08 $ % Harris Corp HRS $2.00 $ % VF Corp VFC $1.48 $ % Walgreens Boots Intl Bus. Machines IBM $5.20 $ % Alliance WBA $1.44 $ % Intel Corp INTC $0.96 $ % Wal-Mart Stores WMT $1.96 $ % Lockheed Martin LMT $6.60 $ % Exxon Mobil XOM $2.92 $ % 3M MMM $4.10 $ % Yum Brands YUM $1.84 $ % Avg $2.88 $ % Portfolio Additions Portfolio Sales Ticker Ticker 3M MMM Baxter International BAX Blackrock Inc. BLK Becton Dickinson BDX VF Corporation VFC McDonalds Corp MCD Medtronic MDT

4 Top 5 Risers Bottom 5 Risers Target Consumer Discretionary 20.80% AFLAC Financials 6.70% Qualcomm Information Technology 20.20% Colgate-Palmolive Consumer Staples 8.10% Hormel Foods Corp Consumer Staples 18.90% Altria Consumer Staples 8.40% Parker Hannifin Industrials 18.70% Chevron Energy 8.50% Microsoft Information Technology 18.60% Intel Information Technology 8.79% Top 5 Performers Price Total 5 Yr. Div. Return Yield Inc. Hormel Foods Corp Consumer Staples 53.20% 54.47% 1.50% 18.90% Harris Corp Information Technology 21.33% 24.04% 2.40% 15.60% Altria Consumer Staples 18.87% 23.11% 3.90% 8.40% Microsoft Information Technology 18.65% 22.69% 2.60% 18.60% Lockheed Martin Corp Industrials 12.33% 16.18% 3.00% 18.40% Bottom 5 Performers Price Total 5 Yr. Div. Return Yield Inc. Qualcomm Information Technology % % 3.90% 20.20% ConocoPhillips Energy % % 5.50% 12.10% Wal-Mart Stores Consumer Staples % % 3.30% 10.60% Parker Hannifin Industrials % % 2.40% 18.70% W.W. Grainger Industrials % % 2.30% 17.20% 22.5% 20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% Allocation Elite Weighting S&P 500

5 Yield by Allocation 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Elite Weighting S&P 500 Performance Elite Price Return S&P 500 Price Return Diff Elite Total Return S&P 500 Total Return Consumer Discretionary -6.1% 8.4% 14.5% -4.8% 10.1% 14.9% Consumer Staples 10.4% 3.8% -6.6% 12.6% 6.6% -6.0% Energy -22.8% -23.6% -0.8% -19.3% -21.1% -1.8% Financials -7.7% -3.5% 4.2% -4.8% -1.5% 3.2% Health Care -1.1% 5.2% 6.3% 0.0% 6.9% 6.9% Industrials -10.3% -4.7% 5.6% -7.9% -2.5% 5.4% Info Tech -3.6% 4.3% 7.9% 0.5% 5.9% 5.4% Materials *0.0% -10.4% -10.4% *0.0% -8.4% -8.4% Telecom *0.0% -1.7% -1.7% *0.0% 3.4% 3.4% Utilities *0.0% -8.4% -8.4% *0.0% -4.9% -4.9% *Did not have exposure to sector Diff Disclosure for Elite Holdings The holdings represented above are the securities included in the First Allied Asset Management BSAN Elite Portfolio as of the date provided. Certain client accounts may vary in the exact allocation and securities held. Holdings may change without notice. No guarantee can be made as to the level of performance or income generated by the strategy and past performance is not a guarantee of future results.