Commonly asked questions about the SignalPoint™ Portfolio Strategy
1. What is the SignalPoint™ Portfolio Strategy ?
SignalPoint™ is an investment model which uses exchange traded funds and Walnut Capital Management’s proprietary investment algorithm to invest in the stock market. It provides a transparent and “emotion-free” platform that seeks to provide competitive rates of return with less risk than the overall stock market due to its cash positions.
Exchange traded funds (ETFs) are sold by prospectus. Please consider the investment objectives, risk, charges and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest.
2. When Walnut Capital Management (WCM) is hired to manage a SignalPoint™ account, who actually has the client’s money?
Your funds are maintained with Wachovia Securities, the nations’s third largest broker dealer and diversified financial services company.*
3. At the inception of management, will the client’s investment portfolio be invested all at once or in stages?
Each new client’s assets are invested with about 30 percent remaining in cash, depending on what WCM’s proprietary market risk indicators are reading.
4. What kinds of reporting services can clients expect from Walnut Capital Management as it relates to the SignalPoint™ Portfolio Strategy?
You may expect a monthly statement illustrating positions and activity; a quarterly summary of portfolio allocation; quarterly and yearly performance reporting; a quarterly newsletter; and an annual tax reporting statement. In addition to the above, IDs and passwords for secure Internet account access are issued at request.
5. What is the minimum account size?
The minimum account size for our Managed Risk Portfolio is $500,000. Amounts are negotiable at the discretion of WCM management.
6. How are investment decisions made for the SignalPoint™ Portfolios?
The team at Walnut Capital Management monitors computerized models, its proprietary algorithm and market risk indicators on a daily basis for possible changes in the holdings.
7. How often can clients expect changes in their portfolio?
One of the benefits of our process is the use of the indexed approach to investing. Changes occur less often, which helps reduce costs to the client while lowering risks and increasing returns. There is no pre-conceived time line from which changes are made. Allocation changes are totally dependent upon market and economic conditions. In colloquial terms, the process allows the portfolio to “sell to the greedy, and buy from the scared.”
8. Is it possible for clients to lose money in one of Walnut Capital Management’s SignalPoint™ allocations?
Yes. As in all market investing there is risk. We at WCM believe we have significantly lowered this market risk while attempting to enhance returns with our process.
9. What if I have a different risk tolerance than other clients of WCM?
There are 9 different portfolios which we manage under the SignalPoint™ discipline. Each portfolio was created to provide access to a different area of the market, for risk tolerances ranging from moderate to aggressive.
10. Once a client invests with Walnut Capital Management, are they “locked in” for any specific period of time?
No. However, we do recommend an investment horizon of at least five years.
11. What ability to communicate with the managers should be expected?
In addition to the regular reports, you always have access to the staff of Walnut Capital Management who are actively involved in managing your portfolio. Unlike a mutual fund, our process allows you access to the people managing your money.
12. What do I do if I want to open an account with Walnut Capital Management or get more information?
Click here to be directed to an online interest form and a member of our team will contact you or call toll free: 877.869.4422.
Exchange Traded Funds seek investment results that, before expenses, generally correspond to the price and yield of a particular index. There is no assurance that the price and yield performance of the index can be fully matched and investors can not invest directly in an index. Exchanged Traded Funds are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost.
The PIM program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wachovia Securities Financial Network advisory disclosure document for a full description of our services.
* Based on customer assets as of June 30, 2007. Wachovia Securities is the trade name used by two separate, registered broker-dealers and nonbank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SPIC, and Wachovia Securities Financial Network, LLC, Member FINRA/SPIC.