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Investment Services
Our customized investment services include:
Balanced Portfolio Management
While one client may require an assured income stream, another may require high growth. Not sure where you fit? That’s where Sundowner comes in — creating custom portfolios utilizing expertise in both stocks and bonds to achieve each client’s unique goals.
Along with you, Sundowner selects the most appropriate mix of stocks and bonds for each portfolio we create. We determine the right asset mix based on long-term growth goals, income and cash flow requirements, and tolerance of market volatility in the portfolio’s market value. Example target allocation ranges are as follows:
| 75% stock / 25% bond allocation is appropriate for clients with: | 25% stock / 75% bond allocation is appropriate for clients with: |
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Once the proper mix of stocks and bonds has been established, Sundowner manages the stocks, bonds — and the balance of assets between the two — ensuring your allocation remains on target and is strategically positioned for your financial goals.
Equity Management
Selecting Stocks
When it comes to buying or selling stocks, Sundowner does not attempt to time the market, or simply purchase the glamour stock of the week. We methodically apply a disciplined selection and retention strategy to each stock. That’s how we’re able to create a customized equity portfolio designed with your best interest at heart.
The Sundowner "Buy Discipline"
Sundowner selects stocks based on methodical analysis, beginning with the assumption that corporate earnings are the most important determinant of the future price of any stock. Stocks are analyzed weekly using Standard & Poor’s data services, and Quantative Earnings Digest — a proprietary computer program employed by one of the largest mutual fund managers in the country.
Sundowner analyzes a stock’s recent price change compared to the market as a whole. A
review of Value Line timeliness, safety and technical ratings, industry group relative price performance and earnings performance compared to Wall Street projections is also conducted.
Finally, we evaluate recent news about a company or industry, the financial strength of a
company and the dividend yield of a stock.
A number of other strategies guide Sundowner’s stock investment decisions, including:
- Avoiding concentration in any one industry
- Periodically selling a portion of a well-performing stock
- Weighing each new stock equally
- Maintaining fully-invested portfolios
The Sundowner "Sell Discipline"
Knowing when to sell is as important as knowing what to buy. Sundowner looks at several variables when considering selling a stock, including price performance relative to the market as a whole, whether the stock has become "overvalued," and disappointing earnings reports. A stock may also be sold when it underperforms, or when consensus earnings forecast predict significantly lower future earnings.
Bond Management
Sundowner only purchases high quality, investment grade intermediate term bonds for our clients. Portfolios may include corporate bonds, treasury securities and government agency bonds. Municipal bonds may also be purchased for taxable portfolios when after-tax rates of return will be higher than can be achieved with high-grade taxable bonds. We do not consider junk bonds.
Sundowner ladders bonds by maturity date for stability, consistency and flexibility. That is, we typically buy intermediate term bonds maturing in successive years, starting in year one and going out ten years. This provides you the following benefits:
- Greater price stability
- Smoother rates of return
- Maximum flexibility for unanticipated capital needs
- Less price fluctuation
Mutual Fund Management
Disciplined Screening
Sundowner only selects no-load mutual funds that provide consistent performance and those that are regularly in the top-tier of their peer group. Plus, diversification is our primary tool to manage volatility and changes in market sentiment.
Using Morningstar, the industry leader in mutual fund analysis, Sundowner screens
approximately 10,000 mutual funds to select only the very top performing funds based on:
- Performance
- Consistency
- Fund expenses
- Tax efficiency
- Diversification
- Superior risk-adjusted returns
Regular Monitoring
All funds held are regularly monitored. While Sundowner would prefer to never sell a fund, we recognize that a fund’s style may change, may become too concentrated in one industry, or other changes may occur that would lead us to sell, including client needs and profit-taking.