Balanced Funds Model

  This model is designed to provide a balanced mix of income and growth for investors with moderate risk tolerances. The intended objective of the allocation is moderate current income and potential for capital appreciation. The strategy utilizes several asset classes - domestic and international corporate bonds, U.S. government bonds, U.S. mortgage bonds, large capitalization stocks, mid capitalization stocks, small capitalization stocks, international stocks, and money market/cash reserve funds. Generally, the managers of the bond mutual funds within this model purchase securities conservative in nature. These will include high quality bonds and other debt obligations to control interest rate risk and reduce credit risk. The managers of the stock mutual funds within this model purchase stocks with high growth potential and high intrinsic values compared with their current market value. Appropriate investors have a short-to-intermediate term time horizon of 5 to 10 years.