Balanced Portfolio

1. Balanced Portfolio
Terry Au

2. Building Blocks of Life
Investment Objectives:
 Preservation of Capital
 Tax Benefits
 Steady Income Stream
 Growth

3. Block I: Preservation of Capital
Types of Municipal Bond Funds
 Oppenheimer AMT-Free Municipals C Class
 Ticker: (OMFCX)
 Federal and AMT tax free
 Monthly dividends yielding at 5.25% (accrued 5.40%)
 1 year maturity
 Face value; commission free*
 Price: $6.97

4. Oppenheimer AMT-Free Municipals C
Class Ticker: (OMFCX)

5. Block II: Steady Income Stream
 REITs – Real Estate Investment Trusts:
Equity, Mortgage & Hybrid
 Minimize liquidity risks compared to ownership of
properties
 REITs gives a strong dividend due to tax incentives
for the corporation
 Slow Capital appreciation
 Steady Monthly income payout

6. Block II: Steady Income Stream
 ARMOUR Residential REIT, Inc. invests in hybrid
adjustable rate, adjustable rate and fixed rate
residential mortgage-backed securities issued by or
guaranteed by U.S. Government agencies or U.S.
Government sponsored entities such as:
 Federal National Mortgage Association (Fannie Mae)
 Federal Home Loan Mortgage Corporation, (Freddie Mac)
 Government National Mortgage Administration, (Ginnie Mae)

8.  Price 7.00
 52 weeks high 7.71
 52 weeks low 5.40
 177 millions outstanding
 Average Vol. 3.7 million
Market Cap: 1.26B
P/E13.34 EPS 0.53
Div & Yield: 1.20 (16.90%)


9. ARR Performance Comparison

10. Block III: Growth
Prominent stock – Pfizer
Pfizer selling divisions to focus on their core
business
Market cap: 171 billion
 $11 Billion buyback for 2012
 FDA advisory panel gives 90% approval on an
Arthritis revolutionary drug to be launched in
September 2012
 $2 billion sales first year expectation (same as
Lipator)
 Price target $29; long term 7/2013 at $35

11. What’s best for you
 Type 1: Value Portfolio:
 60% Muni 5.25%
 10% ARR 17%
 30% PFE 4%
 Type 2: Moderate Portfolio
 50% Muni 5.25%
 20% ARR 17%
 30% PFE 4%
 Type 3: Semi Moderate Portfolio
 30% Muni 5.25%
 20% ARR 17%
 30% PFE 4%
 20% Trade stocks (long/short)

12. Contact – Terry Au, Aegis Capital Group