Corporate Income Investments Continue to Perform Well During This Wild Year.

NOVATO, Calif., July 19 /PRNewswire/ -- Winans International year-to-date portfolio results are:

A New Downtrend in Stocks has Begun.

The Winans Trend Indicator™ has given its first sell signal since January 2008 which confirms the negative signal given by the Winans January Barometer earlier this year. Within our individual client portfolios, we are taking defensive action by:

1. Trimming large individual stock positions (i.e. taking profits).
2. Reducing exposure to any individual stocks that violate their intermediate technical uptrends.
3. Using long short/funds as hedging vehicles.
4. Maintaining high cash levels and/or investing in corporate income investments.

While the depth of any correction is uncertain, we will maintain this cautious posture until our research indicates that the stock market is significantly oversold.

What should investors remember during these historic times?

Common Stocks: WHEN to buy and sell is as important as WHAT to buy and sell during these types of market conditions! We believe profitable navigation of these market conditions is possible by using higher levels of investment rotation, holding high levels of cash after significant market advances and/or using the long/short funds for hedging during volatile downturns.

Corporate Bonds: Short to medium term bonds in stable companies are currently yielding 5% to 7.5% annually. Conservative investors should consider investing a large portion of their portfolios into the near certain returns of corporate bonds rather than the ongoing volatility of the stock market or the high risk of default facing many municipal bonds.

Preferred Stocks: We expect preferred stocks to maintain attractive yields and we believe they can be a good addition for up to 25% of an income portfolio.

Definitions:

1. Growth Investments - 100% growth oriented mid to large capitalized U.S. stocks
2. Income Investments - 100% income oriented investments (corporate bonds, reits, preferred stocks, mlps, etc.)
3. Benchmarks - Price Appreciation and Income of the S&P 500 Index and a corporate income composite (50% Dow Jones Corporate Bond Index, 50% S&P Preferred Stock Index). S&P Preferred Stock Index Inception date was 09/13/2009 – Only DJCBI was used for Statistics in 2003
4. Winans International Statistics – Net Internal Rate of Return (IRR-ROI)

Disclosures:

Benchmark performance for each portfolio category is based on the strategic weightings described above and differ from actual weightings of client holdings during the period displayed. Client portfolios included in each portfolio category are based on client's stated investment strategy and not on actual asset class weightings within each client's portfolio. The volatility of each benchmark may be materially different from that of the investment portfolio. The percentage of clients outperforming their benchmark may be less than shown if benchmark weightings were adjusted to reflect actual client asset weightings over the same period. The Difference % in performance between WI Net Return % and Benchmark % may be less than shown, or negative, if benchmark weightings were adjusted to reflect actual client asset weightings over same period.

Past performance should not be taken as representative of future results. A portfolio's performance is a simple or straight average of the time weighted performance of the client portfolios included in each portfolio category and do not meet the requirements of an AIMR track record. The portfolio performance presented may be materially different if using an asset-weighted average of the client portfolios' performance included in each portfolio category. The information supplied and the formula calculations used are considered reliable but cannot be guaranteed. Information supplied can change without notice.

The performance results portrayed reflect the following: the deduction of expenses paid by the client during the period shown; and, the reinvestment of dividends, capital gains, and other earnings when appropriate (such may be invested in a money market fund or other cash equivalent pending reinvestment).

The results portrayed include all clients.

At year end, the results portrayed will relate only to a select group of WI's clients and will exclude portfolios with the following criteria:

1. Accounts opened for less than 12 months
2. Portfolio size is less than $50,000 as of the year-end balance
3. Clients have changed their investment goal and asset allocation by greater than or equal to 11% during at year-end
4. Net deposits and withdrawals are greater than or equal to 25% of the year-end balance
5. Client selected investments are greater than or equal to 10% of portfolio at year-end
6. Clients have placed restrictions on the investment activities of WI at any time during year
7. Winans International retirement plan and employee accounts

The results portrayed may be materially different if excluded accounts were otherwise included in the performance presented. Additional information is available upon request.

SOURCE Winans International

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