We understand that no two investors have the same situation, so it is important that your money is invested according to your personal needs. We take the time to place your money in a portfolio that will perform accordingly.

 

Although we offer three distinct portfolios, they all emphasize one important characteristic…the return of your principal versus the return on your principal. In other words, all portfolios will emphasize asset preservation before growth.

 

Below you will find a detail of the three portfolio types, Trend-following, Advisor Choice, and Asset Preservation; we welcome your inquiries.

 

Capital Investment Advisors attempts to achieve long-term appreciation of each client’s investments by investing primarily in equity securities of US and foreign companies primarily through mutual funds and exchange trade funds.  A portion of a client’s assets may be invested in individual equity securities and debt securities domestic or foreign, money markets or cash equivalents.

 

The manager invests using a trend following system.  The system was developed in the 1970’s by Dick Fabian and used with his investment clients through a newsletter subscription. In 1992 he sold the newsletter to his son, Doug Fabian. Successful Investing is the present name of the newsletter. Information about the system and the newsletter can be found at www.Fabian.com.

 

The basis of the trend following system is centered on the Domestic Fund Composite index, which was initially developed by Dick Fabian as the Mutual Fund Composite. The composition may change as per directive from Doug Fabian. As a confirmation of a trend, the Wilshire 5000 index is used. There is a very strong correlation between the two indexes.  A positive trend indicated by the two indices results in client assets being moved in the equity market through Exchange Traded funds (ETFs) or mutual funds. A positive trend occurs when the current trend line of the indices moves above the 200 day moving average of the indices. The client assets will remain invested until the current trend line moving below the 200 day moving average of the indices indicates a negative trend. Effectively, the 200 day moving average becomes a stop-loss for the client assets. This minimizes the downside losses of client assets. Historically, since 1977, the average positive cycle is 14 months. Taxable and non-taxable accounts are appropriate, because most gains result in long term capital gains. 

 

Capital Investment Advisors, Inc. relies on the information to make our moves in and out of the market. Once we have received a confirmation to enter the market, we will review the investment recommendations made by the newsletter. Through a fund screener available on the Fabian.com website we review the top performing ETFs and mutual funds for the Conservative and Moderate growth areas. We evaluate them on a 4, 8, and 12-week basis along with the year-to-date, 3 year, and 5 year returns. Additionally, we research the investment choices through publicly available research information on the Internet. Investment choices are made and then monitored on a regular basis while we are fully invested. When we move our client assets to cash on a negative trend moving through our moving average line, we invest the assets in money market accounts. Depending upon the economic circumstances we may move some of these assets into short-term corporate notes for greater investment yield. We will also consider investment in Enhanced Index (EIF) funds, which capitalize on the negative trends of the market.

 

Based on research completed by Ibbotson and Associates, financial research firm, we may include a 20% position in real estate investment trusts (REITs) or alternative equity/fixed income investments. We identify individual stocks or bonds that are appropriate. Non-correlating attributes relative to the equity market, provide diversification for our portfolios, with greater return and lesser risk based on the Ibbotson and Associates findings. These  positions deviate from the trend following system presented by Doug Fabian and www.fabian.com.  

 

Capital Investment Advisors attempts to achieve long-term appreciation of each client’s investments by investing primarily in equity securities of US and foreign companies primarily, but not limited to, mutual funds and exchange trade funds.  Any portion of this portfolio may be in or out of equity/bond positions. The portfolio will utilize mutual funds and ‘baskets’ such as  i-shares, ETF’s, PowerShares, etc… Monies may be invested in any sector, any country including emerging markets and foreign currencies.

 

Mimics Advisor Choice but may choose to have a greater portion in cash or income producing positions.