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What Goes Down ...
Given the volatility we are experiencing in the financial markets, we wanted to take a moment to assure you that the Global Allocation Strategy we have found successful in managing your assets will remain the same as it has for many years.
Our goal remains to produce competitive long-term returns with lower volatility than "stock-only" investments. We have found that the best way to consistently achieve this goal is to hold the majority of assets (the "core") in globally diversified investments. Investments that allow for allocations between stocks, bonds and cash equivalents to be varied from time-to-time in response to changing market and economic trends.
Last week, we re-allocated additional monies from stock investments into bond investments in some of your more aggressive accounts in an attempt to further reduce volatility as the turbulence in the financial markets continues. As you know, we came into 2008 with monies allocated in a rather defensive manner, choosing investments that we felt would help us to mitigate risk as best we could. We are very pleased with the overall performance of the portfolios we manage on your behalf, and we are confident that the moderate and balanced approach we have implemented should provide significantly less volatility through this phase of the current economic cycle than a "stock-only" approach.
Looking forward, we are reviewing investment opportunities that we think will perform very well when the economy and financial markets resume their upward growth, as they most certainly will. Specifically, we are looking for opportunities that are a perfect fit for our Global Allocation Strategy and that have proven performance with limited volatility.
If you have any questions regarding your accounts please call us at (858)350-1010.
Sincerely,
Craig P. Kelley Sean P. O'Hara
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* Performance information stated above is for the one year time period, January 1, 2008 through December 31, 2008, from December 31, 2008 through January 31, 2009, and from inception, March 31, 2006 through January 31, 2009, as is indicated. Performance information is for Kelley Investments Managed Accounts Program where client accounts are managed on a discretionary basis. Not all accounts managed by Kelley Investments are part of the discretionary Managed Accounts Program. Performance information stated above does not pertain to any accounts that are not part of the Managed Accounts Program. Performance results for accounts that are not part of the Managed Accounts Program may differ significantly. Performance information quoted above represents past performance and is not a guarantee of future results. Performance information is quoted on a Gross basis and does not include deductions for management fees or trading expenses. If these fees and expenses were taken into account, performance would be lower. The investment return and principal value of investments in the Managed Income & Growth or Managed Growth Portfolios will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
**For illustrative purposes only. It is not possible to invest directly in an index. Comparisons with the S&P 500® Index are not meant to be indicative of any of Kelley Investments Managed Portfolio strategies, asset composition or volatility. Given the wide scope of securities held by S&P 500, it should be inherently less volatile. Our results may differ markedly from those of the S&P 500 in either up or down market trends. The performance of the S&P 500 is shown with all dividends reinvested into the index and does not reflect any reduction in performance for the effects of transaction cost or management fees.
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Conference Call
To listen to a replay
of our
January 12, 2008 Conference Call, dial (877)471-6587
and enter Program ID 1038358075004#
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Craig P. Kelley offers Investment Advisory Services through Kelley Investments, A Registered Investment Advisor. Client assets are held in custody at Fidelity Investments clearing firm, National Financial Services LLC (NFS).
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