SecurityMaxx

SecurityMaxx Strategies

Bonds | Sector | Domestic Equity | International Equity

SecurityMaxx High Yield Bond (Risk Rating 2 - 3.5)

There are currently three separate Strategies that use bond funds only:

High Yield Bond
Dynamic High Yield
Leveraged High Yield Bond

These Strategies make exchanges between a bond fund, or funds, and a money market fund.

High Yield Bond (Risk Rating 2 / Minimum Account $50,000)
The High Yield Bond Strategy exchanges between a high yield bond fund or funds and a money market fund. This Strategy is a low risk Strategy that is suitable for inclusion in nearly everyone's portfolio. This Strategy trades between high yield bond funds and a money market fund. This strategy has very low volatility.

Dynamic High Yield (Risk Rating 2 / Minimum Account $50,000)
The Dynamic High Yield Strategy attempts to invest in lower-grade, higher yielding bond products during bullish periods while avoiding exposure during bearish trends. The strategy utilizes innovative high yield investments without minimum holding periods or redemption penalties.

Leveraged High Yield Bond (Risk Rating 3.5 / Minimum Account $250,000)
The Leveraged High Yield Strategy exchanges between a high yield bond fund or funds and a money market fund. This Strategy is designed for investors who are comfortable using margin loans to leverage up the returns from the High Yield Bond Strategy. Leverage is not used at all times in this strategy but it is used at times when the price uptrends are most clear and the risk reward is deemed to be in the client's favor. This Strategy trades between high yield bond funds and a money market fund. This Strategy is currently offered only at Charles Schwab & Company. In addition to Spectrum's management fee, clients will also pay Charles Schwab transaction fees and will be charged interest on any margin loans. Please reference the brokerage account agreement for details.

Spectrum Financial Inc.
2940 N. Lynnhaven Road | Suite 200 | Virginia Beach, Virginia 23452
Tel: 757-463-7600

Diversification is the Key to Reducing Investment Risk.

Spectrum's Risk Rating.

There are two ways of reducing investment risk. The first is to invest in low risk/low reward investments such as money funds and short-term bond funds. The second way, and the way Spectrum prefers, is to diversify among several investment methods which all have the ability to produce attractive returns, but are unrelated to each other in terms of what drives performance. By selectively combining Strategies, portfolios can be created for each client based on their individual investment objectives and risk tolerance.

Each Spectrum strategy is risk rated on a scale of 1 to 5, where 1 represents little risk, such as investing in money funds, and 5 represents the risk comparable to investing in a buy-and-hold, aggressive growth strategy. By allocating assets within these risk parameters, clients are able to build risk adjusted portfolios designed to match their tolerance of potential losses and investment objective.