Objective

Model portfolios at Kerns Capital Management are risk-based and have long-term growth of capital as the primary objective. As a secondary, but equally important objective, the portfolios seek to manage volatility and market risk. The primary goal of the portfolios during bear markets is capital preservation.

Strategy

Our process is based on a combination of tactical and strategic investment principles designed to optimize the asset allocation and protect against catastrophic loss. Equity and income-based mutual funds or ETFs are used to implement the strategies. During major market corrections, we will take some or all of the equity holdings to cash in an effort to preserve capital.

Portfolios

The portfolios include Aggressive, Moderate, Conservative, and Stable.

Aggressive

Defined by high risk, the Aggressive portfolio seeks to exceed long-term inflation by a high margin. Investors can accept a high degree of short-term volatility to achieve higher growth over a long-term horizon (greater than 10 years). This portfolio may have substantial fluctuations in value greater than the overall equity markets

Moderate

The objective is to achieve steady portfolio growth while limiting fluctuations in value of the portfolio to less than the fluctuations of the overall equity markets. Investors are willing to accept a fair degree of risk, and are seeking to exceed long-term inflation by a fair margin (e.g., 3-5% over the long-term). Short-term volatility is expected in achieving higher long-term returns.

Conservative

Characterized by risk aversion, minimizing volatility is a priority over growth. The Conservative portfolio is appropriate for investors with a relatively short time horizon (less than five years), with a need for more predictable income or with a high sensitivity to short-term volatility. This portfolio can be expected to produce low average total returns but have relatively low volatility. Long-term capital preservation is favored over substantial returns potential.

Stable

The emphasis is on the preservation of capital, with current returns in excess of money markets rates and inflation. Little consideration is placed on the growth of capital.

If your objective is long-term growth of capital, while managing volatility and market risk, contact us for a free consultation.

Important Disclosures

Note: The model portfolios may invest in all asset types, both domestic and international. Deviations may occur relative to the Account allocations during any specific short-term period due to market conditions or Adviser-perceived and/or anticipated market developments. There can be no assurance that any such perceived and/or market developments will occur, be correct or prove profitable.