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MERIT'S HIGH YIELD BOND SERVICE USING ClOSED-END FUNDS
Accounts are held at FolioFn (www.foliofn.com) where they invest in a "Folio," consisting of closed-end high yield funds (75%) and the SHY ETF (25%). We began offering this service April 30, 2006. The model we use to manage these accounts averages 4 round turns (8 exchanges) per year, moving accounts between the high yield “Folio” and a money market fund (or an inverse high yield fund if the client wishes.) Minimum account size is $50,000. Performance results, based on an actual account, are shown below. Results are net of Merit's 1.6% management fee and all other expenses.
Month
Ending |
Account
Value |
Monthly
Change |
Cumulative
Results |
Period
Covered |
| 04-30-06 |
$123,612 |
- |
- |
- |
| 05-31-06 |
123,302 |
-0.25% |
-0.25% |
1 Mo |
| 06-30-06 |
122,674 |
-0.51% |
-0.99% |
2 Mos |
| 07-31-06 |
124,265 |
1.30% |
0.53% |
3 Mos |
| 08-31-06 |
127,913 |
2.94% |
3.48% |
4 Mos |
| 09-30-06 |
130,097 |
1.71% |
5.24% |
5 Mos |
| 10-31-06 |
130,080 |
-0.00% |
5.23% |
6 Mos |
| 11-30-06 |
131,916 |
1.41% |
6.72% |
7 Mos |
| 12-31-06 |
134,433 |
1.91% |
8.75% |
8 Mos |
| 01-31-07 |
135,169 |
0.55% |
9.35% |
9 Mos |
| 02-28-07 |
134,818 |
-0.26% |
9.07% |
10 Mos |
| 03-31-07 |
136,135 |
0.98% |
10.13% |
11 Mos |
| 04-30-07 |
137,414 |
0.81% |
11.17% |
12 Mos |
| 05-31-07 |
137,966 |
0.40% |
11.61% |
13 Mos |
| 06-30-07 |
134,676 |
-2.58% |
8.95% |
14 Mos |
| 07-31-07 |
131,978 |
-2.00% |
6.77% |
15 Mos |
| 08-31-07 |
133,747 |
1.34% |
8.20% |
16 Mos |
Ticker Symbols of the Funds in the Portfolio as of 8-31-07
|
BDJ |
5.00% |
|
DSU |
4.00% |
|
|
|
|
PHK |
|
|
CSQ |
7.00% |
|
EAD |
|
|
JQC |
|
|
PTY |
|
|
DCS |
4.00% |
|
EVV |
|
|
|
|
|
|
|
|
DNP |
4.00% |
|
GDV |
|
|
|
|
|
|
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The 25% allocation to SHY, which is the Lehman Bros. 1-3-Yr Treasury ETF, helps reduce price volatility and draw downs.
These investments are not FDIC insured,
not bank guaranteed and may lose money.
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