Corporate Income Investing and Active Equity Trading Have Performed Well During This Wild Year

Oct 12, 2011, 18:06 ET from Winans International

NOVATO, Calif., Oct. 12, 2011 /PRNewswire/ -- While many investors have been whipsawed in 2011, investors with active equity strategies corporate income investments have navigated the market volatility well. As can be seen below our year-to-date portfolio results, Winans International's portfolios have generally weathered 2011 well.

Winans International Separate Managed Account Average

Percentage Change December 31, 2010 thru September 30, 2011:


Winans International:





Balanced (50/50)






See descriptions and disclaimers below.

More information can be found at

As stated in the latest article written by Winans International's President & Founder, Kenneth G. Winans, "Our key stock market indicators turned negative on August 5th." As a result, we took timely defensive action within our individual client portfolios by:

  1. Increasing cash levels through trimming large individual stock positions and reducing exposure in individual stocks that violated key technical signals such as the 200-day moving average.
  2. Reallocating portfolios to corporate income investments such as preferred stocks and corporate bonds. In fact, The YTD total return of the Winans International Preferred Stock Index (WIPSI) is up 5.5%!
  3. Using The Winans Long Short Fund (ETFMX) as a hedging vehicle. In fact, the latest performance figures from Morningstar show ETFMX as having the best performing 12-month return of all mutual funds in the "Moderate Allocation" category.

While the depth of any near term correction is uncertain, we expect the foreseeable future will resemble the economic challenges of the 1970's. During that time, major stock market averages traded within a well-defined, sideways range and income investments (bonds, preferreds, reits, etc.) offered comparable returns to stocks.

Portfolio Definitions:

  1. Growth Investments - 100% growth oriented mid to large capitalized U.S. stocks
  2. Income Investments - 100% income oriented investments (corporate bonds, preferred stocks, etc.)
  3. Benchmarks - S&P 500 Index and a corporate income composite (50% Dow Jones Corporate Bond Index, 50% S&P Preferred Stock Index).
  4. Winans International Statistics – Net Internal Rate of Return

Performance Disclosures:

Benchmark performance for each portfolio category is based on the strategic weightings described above and may differ from actual weightings of client holdings during the period displayed. Client portfolios included in each portfolio category are based on client's stated investment strategy and not on actual asset class weightings within each client's portfolio. The volatility of each benchmark may be materially different from that of the investment portfolio. The percentage of clients outperforming their benchmark may be less than shown if benchmark weightings were adjusted to reflect actual client asset weightings over the same period. The Difference % in performance between WI Net Return % and Benchmark % may be less than shown, or negative, if benchmark weightings were adjusted to reflect actual client asset weightings over same period. Past performance should not be taken as representative of future results. A portfolio's performance is a simple or straight average of the time weighted performance of the client portfolios included in each portfolio category and do not meet the requirements of an GIPPS track record. The portfolio performance presented may be materially different if using an asset-weighted average of the client portfolios' performance included in each portfolio category. The information supplied and the formula calculations used are considered reliable but cannot be guaranteed. Information supplied can change without notice. The performance results portrayed reflect the following: the deduction of expenses paid by the client during the period shown; and, the reinvestment of dividends, capital gains, and other earnings when appropriate (such may be invested in a money market fund or other cash equivalent pending reinvestment).

The year-end results relate only to a select group of WI's clients and excludes portfolios that:

  1. Accounts opened for less than 12 months
  2. Portfolio size is less than $50,000 as of the year-end balance.
  3. Clients have changed their investment goal and asset allocation by greater than or equal to 11% during at year-end.
  4. Net deposits and withdrawals are greater than or equal to 25% of the year-end balance.
  5. Client selected investments are greater than or equal to 10% of portfolio at year-end.
  6. Clients have placed restrictions on the investment activities of WI at any time during year.
  7. Winans International retirement plan and employee accounts.

The results portrayed may be materially different if excluded accounts were otherwise included in the performance presented. Additional information is available upon request.

SOURCE Winans International