Capital Income Management, LLC (CIM) is an investment advisory service established in 2009 and based in Portland, Oregon. CIM was founded after the financial crisis of 2008 with the philosophy that capital preservation is paramount to the client's interest as is high income from investments. Through a rigorous evaluation of diversified securities, we have found that high income and growth can be achieved with manageable risk. Our goal for clients is to realize steady outperformance of the market indices year in and year out. To learn more about CIM including fees, services and other disclosures, please review our ADV brochure here.
Douglas J Albo is CIM's Principal and Portfolio Manager. Mr. Albo has been a financial advisor for over 16 years, first with Smith Barney in San Francisco and then with Morgan Stanley also in San Francisco. Through his years of experience, Mr. Albo has learned what securities and strategies work best in the client's interest and offer the best potential for income and long term capital appreciation. Mr. Albo is also an author and contributor on the Seeking Alpha financial website where he is regarded as one of the top Closed-End fund contributors.
Douglas J AlboPrincipal
Capital Income Management, LLC (CIM) offers individual account management to high-net worth investors, trusts, businesses and retirement plans/IRAs. Getting to understand your financial picture and your financial goals is the first step in our client relationship. Whether you're nearing retirement, have come into more investable assets, rolling over your 401(k) or just want to consider a new investment approach, every client relationship is unique and we strive to ensure that we are answering your questions and meeting your expectations.
Communicating with our clients and keeping them informed during the inevitable ups and downs of the markets is also paramount. We're confident that once a client understands our investment thesis and strategy that they will feel more comfortable with their investments in all market environments. Since the financial crisis of 2008, we hear more and more from clients that protection of principal and more income is their primary objective. Our goal is to meet these needs and to smooth out portfolio returns no matter how the markets perform.
Capital Income Management offers a selection of model portfolios which utilize a blend of Closed-End funds (CEFs) and Exchange Traded funds (ETFs) to achieve high income as well as appreciation potential.
Clients can then choose which portfolio fits best with their long term objectives whether it be for income, tax-advantaged income, balanced or appreciation targeted investments. All of our model portfolios would focus on high income as a primary objective but dependent on the blend of CEFs and ETFs utilized, model portfolios can overweight yield oriented funds for income weighted portfolios or growth oriented funds for appreciation weighted portfolios. Model portfolios will generally include between 15-20 funds for added diversity though the funds shown can change without notice. Hedged positions are not shown due to ongoing market conditions that can result in more or less hedged positions.
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Followers On Seeking Alpha
Our goal at Capital Income Management (CIM) is to give client's superior total return performance while protecting capital. What separates us from other investment advisors is a unique investment strategy that utilizes the inefficiencies that exist between diversified securities commonly known as Exchange Traded funds (ETFs) and Closed-End funds (CEFs). ETFs and CEFs are used by investors to achieve diversified equity exposure in the markets but not many investment managers analyze the relationship between these funds and develop portfolios based around their relative valuations. We have found that active portfolio management of these two mostly passive investment fund classes is all one needs to realize a high income and growth portfolio with manageable risk.
History has shown that investing in non-diversified securities such as individual stocks can be a minefield during down or bear market cycles and can make portfolio recovery extremely difficult even when markets recover. We only invest in Exchange Traded funds (ETFs) and Closed-End funds (CEFs) which minimizes any sudden drop in security holdings due to their diversity. ETFs and CEFs give investors the relative safety they need while offering the tradability of individual securities.
High Income Securities
Our goal is to offer clients total annual portfolio income yields of at least 7% so that even if the market goes through a rough patch, our portfolios are still yielding income. CEFs and ETFs give us the means to achieve such high income yields through various income strategies.
ETF's can really only match their benchmark indices but because CEFs can often trade with more volatility than ETFs but yet still retain the safety of diversification, CEFs tend to offer better growth opportunities.
Discount Market Prices
CEFs often trade at premium and discount market prices to their NAV's and will often present opportunities for more sophisticated investors. Our strategy monitors over 100 CEF's for dislocations when premium and discount market prices result in under or overvaluation levels.
The success of our strategy during difficult market periods was due in large part to hedging benchmark ETFs or premium priced CEFs securities that provided downside protection when our portfolios were fully invested or when markets looked vulnerable to a correction.
NOTE: ETFs and CEFs are not guaranteed and investors can lose any and all of their investment.
ETF & CEF FUND SPONSORS
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