Elite Dividend Portfolio
BSAN Elite Dividend Portfolio Tom Breiter, President - For Financial Professional Use Only -
Rules-Based Portfolio Manager Elite Dividend Portfolio started in 2004. Branded for BSAN in 2013. Firm philosophy is to “Win by Not Losing”. Risk Control is paramount. Focus on Rising Dividends Low Turnover / Tax Efficient Lower Volatility than S&P 500 Index High Quality Companies Potential for Above Average Returns
The Historical Record is Clear Over time, dividend payers (as a group): Outperform non-dividend payers Enhancers outperform ‘stagnant’ payers Tend to have lower risk Provide growing income stream
Why Rising Dividends? We believe rising dividend payments identify great growth companies which offer both an attractive long-term income stream and growth of value.
Why Rising Dividends?
Source: Strategas Research Partners; Results from 12/31/1929 – 3/31/2014
Typical Elite Dividend Companies
Observations from 11 Years of History Beta against S&P 500 of 0.6 – 0.7
Standard Deviation 15% - 20% less than S&P 500 Drawdowns during major corrections 50% - 60% of S & P 500 drawdown Historical performance & risk characteristics cannot be guaranteed to hold true in the future.
Annualized Return 18.00% 16.00% 14.00% 12.00% 10.00%
8.00% 6.00% 4.00% 2.00% 0.00% Elite Dividend (Gross) Elite Dividend (Net) S&P 500
1 year
3 year
5 year
7 year
10 year
4.02% 1.45% 7.42%
13.65% 10.83% 17.31%
15.59% 12.72% 17.34%
10.16% 7.43% 9.42%
8.54% 5.86% 7.89%
Since Inception 7.96% 5.28% 7.75%
* Inception date is 06/30/2004 Composite returns are actual, not model returns, and include reinvestment of dividends. Returns are presented gross of fees and net of FAAS’s maximum fee of 2.5% annually. Most clients will pay a lower fee with corresponding higher net results. Index return is provided for comparison. Individuals cannot invest in an index. Past performance is not a guarantee of future results and portfolio values will fluctuate.
Composite Performance Results By Year for BSAN Elite Dividend Portfolio – 06/30/15 For Professional Use Only
Elite Dividend Gross of Fees
Elite Dividend Net of 2.5% Fees
S & P 500 Index
2004*
3.89%
2.60%
7.19%
2005
2.06%
-0.47%
4.91%
2006
15.88%
13.01%
15.79%
2007
2.07%
-0.46%
5.49%
2008
-16.56%
-18.63%
-37.00%
2009
14.33%
11.50%
26.46%
2010
13.91%
11.09%
15.06%
2011
9.57%
6.85%
2.11%
2012
11.33%
8.58%
16.00%
2013
27.24%
24.09%
32.39%
2014
10.50%
7.77%
13.69%
2015 YTD
-0.70%
-1.94%
1.23%
* Inception date is 06/30/2004 Composite returns are actual, not model returns, and include reinvestment of dividends. Returns are presented gross of fees and net of BCM’s maximum fee of 2.5% annually. Most clients will pay a lower fee with corresponding higher net results. Index return is provided for comparison. Individuals cannot invest in an index. Past performance is not a guarantee of future results and portfolio values will fluctuate.
Elite Dividend is Ideal for Bucket 3-A Rising income stream will be significant in 15 - 25 years Capital appreciation likely over 15 - 25 years Tax efficient Higher quality, lower volatility portfolio helps clients stay the course as “owners”
Current Portfolio Yield – Approx. 2.6% Current holdings have increased dividends at an average rate of over 14% annually for last five years. • Assuming this rate continues • Based on original capital investment, yield will be > 6% in 7 years > 16% in 14 years > 40% in 21 years
Even if Stock Prices Failed to Appreciate Over 20 Years….. Dividend income may be high enough to replace buckets 1B & 2 without having to sell bucket 3 holdings. In reality, if dividends increase at these rates over 15 - 25 years, it is highly likely capital appreciation will also occur.
Proactive Risk Control In addition to the inherent defensive nature of the Elite Dividend Portfolio; we employ risk control measures based quantitative trend indicators. Our goal is to identify the times to be fully invested, or when to raise cash (typically not more than 25% in Elite Dividend Portfolio).
Summary We believe the Elite Dividend Portfolio is ideal for a portion of Bucket 3-A of the Bucket Strategy. Your goal as an advisor is to have the client stay the course so your bucket strategy plan will work. Clients understand the concept of more money to spend each year – and will view their portfolio as “owners”, not “traders”
Disclosures •
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. All investment strategies have the potential for profit or loss and past performance is not a guarantee of future results. Changes in investment strategies, contributions or withdrawals may materially alter the performance, strategy and results of your portfolio. The use of charts, formulas or models does not guarantee a particular success rate or prevent potential losses.
•
The performance of various indexes and asset classes being referred to in this information does not reflect the performance of Breiter Capital Management’s clients. It is not possible to invest directly in an index. Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark.
Rules-Based Portfolio Manager Elite Dividend Portfolio started in 2004. Branded for BSAN in 2013. Firm philosophy is to “Win by Not Losing”. Risk Control is paramount. Focus on Rising Dividends Low Turnover / Tax Efficient Lower Volatility than S&P 500 Index High Quality Companies Potential for Above Average Returns
The Historical Record is Clear Over time, dividend payers (as a group): Outperform non-dividend payers Enhancers outperform ‘stagnant’ payers Tend to have lower risk Provide growing income stream
Why Rising Dividends? We believe rising dividend payments identify great growth companies which offer both an attractive long-term income stream and growth of value.
Why Rising Dividends?
Source: Strategas Research Partners; Results from 12/31/1929 – 3/31/2014
Typical Elite Dividend Companies
Observations from 11 Years of History Beta against S&P 500 of 0.6 – 0.7
Standard Deviation 15% - 20% less than S&P 500 Drawdowns during major corrections 50% - 60% of S & P 500 drawdown Historical performance & risk characteristics cannot be guaranteed to hold true in the future.
Annualized Return 18.00% 16.00% 14.00% 12.00% 10.00%
8.00% 6.00% 4.00% 2.00% 0.00% Elite Dividend (Gross) Elite Dividend (Net) S&P 500
1 year
3 year
5 year
7 year
10 year
4.02% 1.45% 7.42%
13.65% 10.83% 17.31%
15.59% 12.72% 17.34%
10.16% 7.43% 9.42%
8.54% 5.86% 7.89%
Since Inception 7.96% 5.28% 7.75%
* Inception date is 06/30/2004 Composite returns are actual, not model returns, and include reinvestment of dividends. Returns are presented gross of fees and net of FAAS’s maximum fee of 2.5% annually. Most clients will pay a lower fee with corresponding higher net results. Index return is provided for comparison. Individuals cannot invest in an index. Past performance is not a guarantee of future results and portfolio values will fluctuate.
Composite Performance Results By Year for BSAN Elite Dividend Portfolio – 06/30/15 For Professional Use Only
Elite Dividend Gross of Fees
Elite Dividend Net of 2.5% Fees
S & P 500 Index
2004*
3.89%
2.60%
7.19%
2005
2.06%
-0.47%
4.91%
2006
15.88%
13.01%
15.79%
2007
2.07%
-0.46%
5.49%
2008
-16.56%
-18.63%
-37.00%
2009
14.33%
11.50%
26.46%
2010
13.91%
11.09%
15.06%
2011
9.57%
6.85%
2.11%
2012
11.33%
8.58%
16.00%
2013
27.24%
24.09%
32.39%
2014
10.50%
7.77%
13.69%
2015 YTD
-0.70%
-1.94%
1.23%
* Inception date is 06/30/2004 Composite returns are actual, not model returns, and include reinvestment of dividends. Returns are presented gross of fees and net of BCM’s maximum fee of 2.5% annually. Most clients will pay a lower fee with corresponding higher net results. Index return is provided for comparison. Individuals cannot invest in an index. Past performance is not a guarantee of future results and portfolio values will fluctuate.
Elite Dividend is Ideal for Bucket 3-A Rising income stream will be significant in 15 - 25 years Capital appreciation likely over 15 - 25 years Tax efficient Higher quality, lower volatility portfolio helps clients stay the course as “owners”
Current Portfolio Yield – Approx. 2.6% Current holdings have increased dividends at an average rate of over 14% annually for last five years. • Assuming this rate continues • Based on original capital investment, yield will be > 6% in 7 years > 16% in 14 years > 40% in 21 years
Even if Stock Prices Failed to Appreciate Over 20 Years….. Dividend income may be high enough to replace buckets 1B & 2 without having to sell bucket 3 holdings. In reality, if dividends increase at these rates over 15 - 25 years, it is highly likely capital appreciation will also occur.
Proactive Risk Control In addition to the inherent defensive nature of the Elite Dividend Portfolio; we employ risk control measures based quantitative trend indicators. Our goal is to identify the times to be fully invested, or when to raise cash (typically not more than 25% in Elite Dividend Portfolio).
Summary We believe the Elite Dividend Portfolio is ideal for a portion of Bucket 3-A of the Bucket Strategy. Your goal as an advisor is to have the client stay the course so your bucket strategy plan will work. Clients understand the concept of more money to spend each year – and will view their portfolio as “owners”, not “traders”
Disclosures •
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. All investment strategies have the potential for profit or loss and past performance is not a guarantee of future results. Changes in investment strategies, contributions or withdrawals may materially alter the performance, strategy and results of your portfolio. The use of charts, formulas or models does not guarantee a particular success rate or prevent potential losses.
•
The performance of various indexes and asset classes being referred to in this information does not reflect the performance of Breiter Capital Management’s clients. It is not possible to invest directly in an index. Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark.
