E-Portfolio
The Equity Portfolio, or E-Portfolio, is Vision Advisors flagship program designed for growth-oriented investors. Given the risks involved with investing in the equity market, the assistance of a professional money manager is vital. Vision Advisors' internal research efforts focus on the analysis of balance sheets and several market factors to help make prudent decisions on the selection of investments in the Equity Portfolio.
Vision Advisors strongly believes that a select number of quality stocks are worth owning. These stocks fit the investment characteristics displayed by seasoned companies poised for further growth. Accordingly, the Equity Portfolio consists of 15 to 30 companies with a market capitalization dollar value of over $8 billion, making them "large cap" stocks. Such a portfolio has exhibited in the past a high level of financial strength coupled with a demonstrated record of substantial growth and Vision believes, strong prospects for continued growth. Vision Advisors' principal objective in its Equity Portfolio is to provide returns from a diversified group of large cap growth companies that outpace the S&P 500 Composite Stock Price Index over a broad market cycle.
Vision Advisors' internal research efforts focus on identifying companies that have in Vision's opinion, sustainable revenue (top-line) and earnings (bottom-line) growth, as well as competitive advantages in their market and above-average returns on equity. To this end, Vision Advisors employs proprietary screening methods to predict expected revenue and earnings over the next one to two years. Upon identifying a number of companies, the selection is further narrowed by applying other proprietary investment rules to predict price earnings ratios and evaluate future price prospects. Final selection of the portfolio is made through analysis of an issuer's quality of management, new product developments, potential for unabated growth, capitalization and other significant factors.
Securities in the Equity Portfolio may represent several sectors of the economy, but generally will not be concentrated in any one sector or typically constitute more than 15% in any one issuer. Securities are sold when they are deemed to have reached their maximum level of growth or to make room for securities with more attractive growth potential. Other selling considerations may be deceleration in sales or earnings growth, excessive competition, over-expansion or product pricing weakness.
Vision Advisors also believes that it makes sound economic sense to employ from time to time a strategy of writing covered call positions against some or all of the stocks in the Equity Portfolio*. The primary purpose of option writing is to earn additional income through premiums received from the buyers of the call options. At the same time, the premium income received by the investor serves as a measure of downside protection if the price of the underlying stock declines. By means of this option writing program, Vision Advisors will attempt to enhance total returns in the portfolio by writing covered call options on its stock and collecting the premium. Further information about writing covered calls may be found here.
