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Managed
Asset Allocation (fee
schedule below)
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| Sanco Services
provides Managed Asset Allocation Services for all levels and types
of Investors, large and small, and in a manner distinctly different from
what most people have become accustomed to. The basic premise is
that Asset Allocation is
a personal planning tool that helps
assure that an investment portfolio is tuned-in to the goals, objectives,
and relevant time frames of each individual investor. Sanco
Services customizes Investment Portfolios with an Asset Allocation
that never includes one-size-fits-all
Conventional Mutual Funds
and other Investment Products. A true Asset Allocation plan just cannot
include products and an asset allocation mutual fund is an oxymoron!
You absolutely must
have a thorough understanding of:
for investment
success... defined realistically as personal goal attainment. Click the
underlined links for a complete discussion of each of these
important concepts.
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| In the controversial Investment Management Book,
The
Brainwashing of the American Investor: The Book that Wall Street does
not Want YOU to Read, Investment Manager Steve
Selengut takes Asset Allocation back to its roots with The
Working Capital Model, a reality based method for monitoring
both Asset Allocation and portfolio performance on a uniquely personal
level... based upon each individual investors' goals and
objectives.
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Asset Allocation
based on The Working Capital Model
allows investors:
- To
never be "in" or "out"
of the market based upon guesswork as to market direction. A person
should always be investing in new opportunities and taking reasonable profits when they are available.
- To
successfully manage and discipline themselves to follow a consistent strategy. Each selected security must contribute to goal achievement and be consistent with the client's risk tolerance.
Normal Stock Market Volatility is cherished for the opportunities it creates
in both directions!
- To
select stocks with short term growth as the only objective, while Bonds,
Preferred Stocks, Municipal Bonds, etc. are expected to produce income and nothing else.
The Sanco Services Investment Management Strategy seeks a 10% net/net gain, taken as quickly as possible, in
either class of security.
NOTE: The
10% trading target is simply a target, and not an annual portfolio goal
or market value expectation of any kind. It is also not a guarantee or an absolute
target for every trade... in some
environments four 7%ers may be easy while three tens are impossible!
CEFs are used for small
accounts and for Fixed Income. (See
Discussion of CEFs.)
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Just as
Asset Allocation is the Investment Planning
step,
hands on Investment Management with consistent rules, disciplines, and
expectations makes long term growth and goal achievement more likely.
Some basics in a Sanco Service's Managed Asset Allocation Program include:
- No attempt to follow every Equity,
or experimentation with fancy strategies, gimmicks, indices, or options. We specialize in trading NYSE, B+ or better rated, dividend paying
companies, companies the we call Investment Grade Value Stocks or
IGV stocks. Of all the stocks out there, approximately 450 are IGV
stocks, and until recently , no Investment Grade Value Stock
Index (IGVSI) existed. Historically, it is estimated that the average holding period for an
IGV stock is between 4 and 7 months.
- An
initial "buy" target is a price 20% below the stock's high of the last twelve months. Maximum positions are not taken initially so that more of the security can be purchased if it moves to lower levels. Thus,
Sanco Services' clients are never buying stocks at historically
high prices.
- A
"sell" target is established at a price approximately
10% above cost basis (commissions are a piece of cost basis). When the price approaches this level, it is closely monitored to assure that a profit taking opportunity is not missed. The shorter the holding period, the more quickly we
sell, even for a smaller profit. Profits are taken pre-target during
extended corrections to take advantage of larger numbers of IGVS
Bargains.
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Generally speaking, stocks are treated like inventory on the shelves of any retail store. An acceptable
"mark up" is assigned to each item and accepted without question when a customer appears. New inventory is then found to replace the old.
This is simply GREED CONTROL, an important feature of the methodology,
and unencumbered by hindsight.
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| Any
Asset Allocation (divisible by 5 and including only
two classes of Investment Securities) is acceptable in a Sanco Services'
Managed Portfolio, UNLESS Investment Manager Steve
Selengut finds it to be an inappropriate allocation for the individual
client. Every prospective client is
interviewed personally to assure an eyes wide open set of expectations,
and there is an Asset Allocation Formula with an appropriate risk level inside.
(In some instances, this interview may be conducted by others who are familiar with and conversant in the
investment strategies used by Sanco Services.) |
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***
Financial Website Warning Label: Please Read Me ***
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- Sanco Services' Fee Schedule
(below) includes
Investment Management Fees Only. Clients may have some options with respect
to how commissions are handled... either by transaction or (if
eligible) through a
flat annual fee. Fees are normally deducted directly from the
investment account, BUT not in advance, which is the industry norm.
- The Portfolio Size figure includes all of
the accounts in a Management Relationship...YES, you and your
relatives.
- The Management Fee Schedule is based on
Sanco's standard operating procedures and brokerage relationship.
Special arrangements that increase the paperwork and/or reduce
operating efficiencies are not in the best interest of clients and
will only be considered under exceptional circumstances... and at a
much higher fee.
- Sanco clients' will be managed through a
full service broker who has become an expert in the management
style, concepts, and investment strategies employed by Sanco
Services. The idea that two independent entities can work together
to provide a comparatively cost effective and better service
experience to their joint clients is a basic tenant of the business
environment in a free-enterprise, capitalistic, society.
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Investment Management Fees
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Average Size |
Annual Charge |
under $300,000 |
1.20%
(min=$1,000) |
| 300,001 - 600,000 |
.95% |
| 600,000 and up |
.80% |
| Fixed Income |
.65%
(min=$1,000) |
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- Sanco Services' Managed Portfolios range in
Asset Allocation from 100% Equity to 100% Fixed Income, and since individual securities
make up the bulk of the securities held, portfolios are very flexible
and easy to alter as a person's situation changes.
- Asset Allocation adjustments are never made in an effort to
"time the market" or just to "look smart" on
client monthly statements.
- The pie charts below do not represent fixed portfolio choices.
They are merely samples. Any figure (divisible by 5%) is possible,
and actual portfolios will vary slightly from "the Plan"
dependent on cash flow and availability factors in the Stock Market.
- Any account with less than 20% in Equities is considered an
"income" portfolio for analysis (and for billing) purposes.
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A Conservative Account
25% Equities
75% Fixed Income |
An Average Account
60% Equities
40% Fixed Income |
An Aggressive Account
80% Equities
20% Fixed Income |
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