IMS Strategic Income Portfolio A flexible strategy designed ...


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

IMS Strategic Income Portfolio A flexible strategy designed ...

  1. 1. IMS Strategic Income Portfolio A flexible strategy designed for changing market conditions
  2. 2. IMS Capital Management – Firm Overview <ul><li>Founded in 1988, 17 th year in business </li></ul><ul><li>$741 million in assets as of September 30, 2005 </li></ul><ul><ul><li>$190mm mutual funds </li></ul></ul><ul><ul><li>$551mm separate accounts </li></ul></ul><ul><li>Three no-load mutual funds </li></ul><ul><li>Northwest-based, offices in Portland, Seattle and San Jose, California </li></ul><ul><li>Staff of ten professionals </li></ul><ul><li>Independently-owned and operated, boutique value shop </li></ul>
  3. 3. Highly Experienced Investment Team CARL W. MARKER – 17 years industry experience Carl W. Marker, 42 is the founder, president and chief investment officer of IMS Capital Management. Mr. Marker received a BS degree from the University of Oregon and has managed the IMS family of no-load mutual funds since their inception. He is a member of the Portland Society of Financial Analysts, serves on the board of the Clackamas County Library Foundation and is frequently interviewed by the national television and print media. ARTHUR G. NUNES – 21 years industry experience Mr. Nunes is a portfolio manager and a principal of IMS Capital Management. He co-manages the IMS Strategic Allocation Fund and performs research and technical analysis for the firm. He earned a BS degree from Ohio State University. Prior to joining IMS, Mr. Nunes worked for RBC Dain Rauscher and Salomon Smith Barney. Mr. Nunes is a Level III candidate in the Chartered Market Technician (CMT) program. JOSEPH M. LEDGERWOOD – 4 years industry experience Joseph M. Ledgerwood is a research analyst and trader for IMS Capital Management and the IMS family of no-load mutual funds. Prior to joining IMS, Mr. Ledgerwood gained financial services and investment experience working at a bank and full service brokerage firm. Mr. Ledgerwood graduated from the University of Portland, where he earned a Bachelor of Business Administration degree in Finance. Mr. Ledgerwood is currently a Level III candidate in the Chartered Financial Analyst (CFA) program.
  4. 5. The Current Backdrop for Income Investing <ul><li>Stocks are near 3-year highs. </li></ul><ul><li>Investors have been gravitating toward the sectors that have been hot: real estate, energy, utilities, commodities and basic materials. </li></ul><ul><li>Short-term rates peaked around 1980 near 20%, and have been mostly falling ever since. Long rates went from a high of 14% in 1981 to 4% by June 2003. </li></ul><ul><li>Fixed income investors have been spoiled as rates have been generally falling for 25 years. </li></ul><ul><li>Long-term interest rates are finally starting to rise. </li></ul>
  5. 6. The Traditional Approach to Generating Income <ul><li>Over the last two decades, the conventional method for generating income has been to use investment-grade bonds with various maturities. </li></ul><ul><li>Investment-grade bonds do well when interest rates are flat to falling; however, the 20-year bull market for bonds caused by falling interest rates appears to be over. </li></ul><ul><li>More comprehensive and flexible strategies are necessary to produce income and protect principal in today’s rising interest rate environment. </li></ul>
  6. 7. Keys to Successful Income Generation <ul><li>In a Rising Interest Rate Environment </li></ul><ul><ul><li>Maintain less exposure to investment-grade bonds </li></ul></ul><ul><ul><li>Diversify into securities that are well-positioned for a recovering economy </li></ul></ul><ul><ul><li>Maintain equity participation at appropriate times </li></ul></ul><ul><ul><li>Own floating rate funds and adjustable rate funds </li></ul></ul><ul><li>In a Flat to Falling Interest Rate Environment </li></ul><ul><ul><li>Own long maturity investment-grade bonds and Treasuries </li></ul></ul><ul><ul><li>Focus on quality and credit ratings above single A </li></ul></ul><ul><ul><li>Maintain exposure to securities that historically have done well in a falling interest rate environment. </li></ul></ul>
  7. 8. The Complete Toolbox for Income Investing <ul><li>investment-grade bonds </li></ul><ul><li>high yield bonds </li></ul><ul><li>municipal bonds </li></ul><ul><li>corporate bonds </li></ul><ul><li>US government bonds </li></ul><ul><li>international bonds </li></ul><ul><li>convertible bonds </li></ul><ul><li>convertible preferred stocks </li></ul><ul><li>preferred stocks </li></ul><ul><li>high dividend common stocks </li></ul><ul><li>REITs </li></ul><ul><li>covered calls </li></ul><ul><li>income trusts </li></ul><ul><li>closed-end income funds </li></ul><ul><li>open end income funds </li></ul><ul><li>adjustable rate mortgage funds </li></ul><ul><li>floating rate bank funds </li></ul><ul><li>oil royalty trusts </li></ul><ul><li>business development companies </li></ul><ul><li>short term and inverse bond funds </li></ul><ul><li>cash equivalents </li></ul>
  8. 9. IMS Strategic Income Approach <ul><ul><li>Take advantage of the “complete tool box” of income-producing securities as opposed to using just bonds. </li></ul></ul><ul><ul><li>Use the tools that are appropriate for the current economic, interest rate and market conditions. </li></ul></ul><ul><ul><li>Emphasize high, current income. </li></ul></ul><ul><ul><li>Actively adjust weightings to manage risk when interest rates are rising and take advantage of opportunity when interest rates are falling. </li></ul></ul><ul><ul><li>Use top down analysis to determine weights in various categories of income-producing securities. </li></ul></ul><ul><ul><li>Be flexible and nimble enough to be in the right place at the right time. </li></ul></ul><ul><ul><li>Maintain broad diversification to reduce risk and reduce volatility. </li></ul></ul><ul><ul><li>Use a multi-sector approach to help provide lower volatility, favorable yields and attractive total returns. </li></ul></ul>
  9. 10. Investment Process--IMS Strategic Income Consider any security that produces income. Use top down analysis to identify areas of opportunity Use a proprietary 19-point research model to select income-producing securities on the basis of quality, frequency of payments, volatility, yield, market cap, industry, financial strength, and potential for appreciation. Resulting portfolio 60 to 70 securities
  10. 11. IMS Strategic Income Fund vs. Lipper Income Category Average As of September 30, 2005 Past performance above does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than original cost. Figures include change in principal value, reinvested dividends and capital gain distributions. Current and monthly performance may be lower or higher than that above, and is available by calling 1-800-408-8014. The Lipper Income Category Average reports the average return of all income funds tracked by Lipper for the periods noted. It is not available for direct investment. .
  11. 12. A History of Monthly Dividends – IMS Strategic Income Fund The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. Before making an investment decision, it's important to check the fund's prospectus for factors such as investment objectives, costs and expenses, liquidity, fluctuation of principal or return, and tax features. See performance data current to the most recent month-end at, which may be higher or lower than that cited. The current yield is defined as the annual income divided by the current price. 4.71% $10.18 11/15/2005 $0.0400 11/14/2005 5.70% $10.53 10/15/2004 $0.0500 10/14/2004 6.65% $10.83 11/15/2004 $0.0600 11/12/2004 7.55% $11.13 12/15/2004 $0.0700 12/14/2004 6.77% $10.63 1/14/2005 $0.0600 1/13/2005 7.84% $10.71 2/15/2005 $0.0700 2/14/2005 6.77% $10.62 3/15/2005 $0.0600 3/14/2005 5.90% $10.17 4/15/2005 $0.0500 4/14/2005 8.41% $9.99 5/13/2005 $0.0700 5/12/2005 6.32% $10.25 6/15/2005 $0.0514 6/14/2005 6.85% $10.51 7/15/2005 $0.0600 7/14/2005 8.00% $10.49 8/15/2005 $0.0700 8/12/2005 8.02% $10.48 9/15/2005 $0.0700 9/14/2005 5.92% $10.14 10/14/2005 $0.0500 10/13/2005 Current Yield Reinvest Price Reinvest Date Amount Record Date
  12. 13. Sector Weightings – IMS Strategic Income Fund As of September 30, 2005 Sector weights are subject to change at any time.
  13. 14. Largest Holdings As of September 30, 2005 <ul><li>IMS Strategic Income Fund </li></ul>Portfolio holdings are subject to change at any time. 2.26% Level 3 Communications, 11.25%, 3/15/2010 2.13% Ford Motor Credit 7.875%, 6/15/2010 2.56% Lucent Technology 6.45% 3/15/2029 2.76% Fidelity Floating Rate Fund 2.84% Kelmoore Strategy Liberty Fund 2.12% Cenveo Corp 7.875%, 12/1/2013 2.30% Land O’Lakes, 8.75%. 11/15/2008 2.52% Alliance World Gov’t Dollar Fund 2.54% Ford Motor Company 7.25%, 10/01/2005 3.07% General Motors 6.375%, 5/1/2008 % of PORTFOLIO HOLDINGS
  14. 15. Why IMS Capital Management? <ul><ul><li>Independently owned and operated boutique value shop </li></ul></ul><ul><ul><li>Distance from Wall Street fosters independent thinking </li></ul></ul><ul><ul><li>Highly focused, skilled investment team, experienced in both up and down markets </li></ul></ul><ul><ul><li>Portfolio managers invest significant personal assets in IMS Funds. </li></ul></ul><ul><ul><li>Commitment to constantly improving investment process </li></ul></ul><ul><ul><li>17 years in business, three quarters of a billion dollars in assets </li></ul></ul><ul><ul><li>Nationally recognized by Kiplinger’s Personal Finance, Money Magazine, Investment News, Serious Money and many other leading industry publications and television programs. </li></ul></ul><ul><ul><li>Mission: Deliver exceptional client service, outstanding investment counsel </li></ul></ul><ul><ul><li>and superior investment returns. </li></ul></ul>
  15. 16. Important Disclosure <ul><li>Past performance of the IMS Strategic Income Fund does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's return, when redeemed, may be worth more or less than original cost. Figures include change in principal value, reinvested dividends and capital gain distributions. Current performance may be lower or higher than that quoted herein. Monthly performance is available by calling 1-800-408-8014 or by visiting . </li></ul><ul><li>The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other information about the investment company. Please read it carefully before investing. The prospectus is available by calling 503-788-4200 or by visiting . Distributed by Unified Financial Securities, Inc., Member NASD. </li></ul>