Wealth Management

The Target Balanced Portfolio (TBP) strategy utilizes many asset classifications components including large cap, small cap, mid cap, international, emerging markets, high-yield and senior bank loan floating notes to construct a balanced portfolio. Harvest Oak Capital believes that each asset class has a historical pattern of investment return and tends to regress to the mean historical trend pattern. Regression analysis, along with tactical asset allocation, may provide a guide to higher returns and minimizing downside risk. The optimal target for a diversified portfolio is approximately 60%/40% equities versus bonds and cash reserves. In market extremes the target may range from 75%/25% to 25%/75% using optimization skills to rebalance the components in an effort to provide additional returns while limiting risks.

The Target Income Portfolio (TIP) strategy utilizes income producing asset components such as ETFs, mutual funds, closed-end funds and MLPs to construct a portfolio with an emphasis on income generation. Portfolio components may include treasury securities, corporate bonds, dividend producing equities, high-yield bonds, global bonds and senior bank loan floating notes. Harvest Oak believes each asset class has a historical pattern of investment return and tend to regress to the mean historical trend pattern. Harvest Oak believes that regression analysis, along with tactical asset allocation, may provide a guide to better returns while minimizing downside risk. Generally speaking, a diversified income portfolio has an optimal target allocation of approximately 75%/25% bonds & cash reserves versus stocks.

The Target Closed End Fund Portfolio strategy (sub-advisor Powell Investment Advisors) seeks to benefit from the inefficiencies in the secondary market for Closed-End Funds which typically trade at a discount to the funds underlying net asset value (NAV). Powell uses a combination of the quantitative approach and research-driven qualitative process for selecting closed-end funds utilized to create a portfolio of Closed-End Funds allocated across multiple sectors, strategies, asset classes and managers. The objective is to create a total return comprised of three components: (i) current income; (ii) capital appreciation; and (iii) discount NAV regression to historical average NAV.