|
|
Current Actions
Our objective is always to produce competitive long-term returns with low-to-moderate risk. During times of high market volatility and uncertainty we find it best to attempt to preserve capital as best we can and to be patient for the coming opportunities (there are always opportunities created from significant declines).
In the discretionary, actively managed accounts we manage we have been rather defensive for the better part of a year now, taking profits and reducing risks where appropriate. Earlier this week, as the stock market rebounded strongly; we took the opportunity to further reduce risks in these accounts anticipating that the economy is likely to continue to slow and the financial markets likely to remain volatile in the months ahead.
After this week's re-allocations, your accounts that we are actively managing are currently invested with approximately 70% to 80% in one-to-three year US Treasury Notes, and approximately 20% to 30% in the broadly diversified, Blackrock Global Allocation Fund. We are taking what could be considered an extremely conservative position feeling that it is best to try to preserve capital rather than ride out the current economic storm, which may last some time.
It is our belief that the approach most conducive to long-term investment success is one that incorporates diversification, risk management, a global menu of investment choices, and most important the flexibility to make changes as the markets and economy changes.
We remain confident that our fluid approach will continue to serve you well moving forward and encourage you to call us at 858-350-1010 if you have any questions or concerns about your investments.
Sincerely,
Craig P. Kelley Sean P. O'Hara
|
* 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.
 |
|
|
|
|
Conference Call
To listen to a replay
of our
January 12, 2008 Conference Call, dial (877)471-6587
and enter Program ID 1038358075004#
|
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).
|
|
