Management Approach - The investment strategy utilizes the Turner Capital proprietary "income harvesting" approach in regard to capturing dividend yield.  The portfolio will hold a diversified mixture of ETFs, CEFs and/or stocks that exhibit a consistent to growing dividend yield from 4% to well over 10%, depending on the equity.  The objective is, primarily, income.  Holdings will, on occasion, include short-term covered call and/or naked put trades.  If no high-yielding equity meets the minimum requirement to be in the portfolio strategy, the strategy will focus on the highest-yielding safe money market funds available at the time.

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Turner Capital has developed proprietary analysis algorithms that provide the portfolio manager with the following information:

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• PERFORMANCE - Turner Capital publishes the historical performance of this strategy each week in the Turner Capital "Client Letter".  To get a copy of this letter, please fill out the "Start a Dialog" form.  IMPORTANT: Past performance provides no guarantee, implied or otherwise, of future returns.

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• TURNER CAPITAL INCOME HARVESTING STRATEGY - Turner Capital has developed a proprietary set of algorithms that analyze higher-yielding stocks and closed-end funds to determine, from historical data, the best day to buy the equity prior to the ex-div date.  Once the equity has been purchased, an upside bid price and downside stop loss price is set for the equity as we hold for either upside bid price or ex-div date is reached.  As soon as the ex-div date is reached, the objective is to exit the holding as soon as it reaches the basis price.  For an equity to be considered for this strategy, it must show an historical likelihood of reaching its basis within 2 weeks following the ex-div date.  One objective is to hold these high-yielding equities for the shortest period of time possible, since they tend to be hypersensitive to downside trends in the market.  The goal of this "Income Harvesting Strategy" is to capture dividend premium and exit the position as soon as possible to avoid downside risk of capital loss.

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• TREND AND CONTINUITY OF TREND - The Turner Capital investment strategy is predicated on the assumption that market and equity trends tend to stay on trend more than they change trend.  Therefore, the methodology relies on the mathematical likelihood that a trend will remain reasonably constant until such time as the trend is detected as having reversed.  This analysis includes the setting of volatility ranges that each equity has exhibited over at least the past 3 years.

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• BULL, TRANSITION OR BEAR MARKET CONDITION - The Turner Total Market Index (TMI), in general, is rated by the Turner Capital software system as either in a bullish, transition or bearish trend.  A bullish market trend exists when the 200-day moving average of the TMI has a positive slope.  A bearish condition exists when the 200-day moving average of the TMI has a negative slope.  The market is considered to be "in transition" when the 200-day moving average of the TMI is flat.

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• ​DOWNSIDE EXIT -   Downside stops are set just below the average of the downside volatility range of each holding in the portfolio.

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• Moving Into the Market - The portfolio strategy manager has the discretion to have up to 100% of capital invested at all times.

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Typical Profile of Holdings - This model focuses ETFs, CEFs and stocks that distribute above average dividends on a monthly or quarterly basis.  Two important aspects of each holding are: 1) A consistent and/or growing dividend; and, 2) A reasonably predictable level of volatility. 

 

Portfolio Model Structure - When fully invested, client portfolios following this strategy will be invested in generally less than 20 different equities (ETFs, CEFs and/or stocks) that pay a consistent, higher-than-average dividend, and not more than 20% of capital invested in stocks for Covered Calls.  While every effort is made to keep the client's portfolio as diversified as possible, there may be times, depending on market condition, when the investments are not diversified.

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Minimum Account Size - $100,000

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Fee and Fee Structure - Clients pay a management fee to Turner Capital Investments, LLC.  This management fee covers all management services.  There are no trade transaction fees. TCI management fees range from 1% to 2% of the net asset value of client account(s).  The percentage rate is based, in part, on the aggregated total of an individual client's accounts being managed by TCI (see "Family Discount", below).  One-twelfth of the fee is deducted from the client's account(s) monthly.  

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Family Aggregation for Fee Assessment - When calculating the net asset value of a client's account for the purpose of determining the appropriate management fee, TCI aggregates all the client's personal accounts, plus all of the client's family accounts, such that the aggregate amount of the client plus family accounts are used to get the lowest possible management fee for the client and the family accounts.

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Potential Draw-Down - Generally, draw-downs are limited to losses incurred when a stop loss is triggered.  The amount of actual loss (peak-to-trough) depends on when the client began following this strategy and the high in his/her account during that time.  The average stop loss for holdings in this strategy can run from 2% to 12%.  Draw-downs, historically have been in the 2% to 4% range.  A draw-down estimate should not be considered the maximum potential loss of capital.  A draw-down can occur at any time; and then, at any point in the future, another draw-down can occur.  Turner Capital does not warrant or promise or guarantee any maximum potential loss in this or any investment strategy that we manage.