CMA'S 6%- 8% MULTI-ASSET CLASS INCOME PORTFOLIO STRATEGIES

The US stock market has been quite volatile for the past decade and CDs & Money Market Accounts are now paying 1% or less. Savers and investors are seeking alternatives to high risk growth stock market investing and low CD rates. CMA Multi-Asset Class Portfolio Strategies, as discussed in CMA Investor Update reports, provide high current income for building retirement savings and earning high retirement income, as an alternative to more risky "growth stock investing".

WHAT ARE MULTI-ASSET CLASS HIGH INCOME PORTFOLIOS?

These portfolios employ a mix of allocation across multiple assets classes of high dividend common stocks, REITs, MLPs, Preferred Stocks, and Corporate Bonds. This mix of asset class investment creates "Total Return Investments" that provide high current investment income for reinvestment, growth of portfolio income from rising dividends, and potential capital appreciation on equity share values.

Investors can hold these various asset class securities comingled in one account or in separate accounts for each type of asset class used. The different standard account types used by investors (outside of 401k type mutual fund accounts) are: Single name taxable investment account, Joint taxable investment account, IRA account, ROTH IRA account, Revocable trust account, Irrevocable trust account, and Corporate & LLC type accounts. Investors open these types of accounts at a Trust Company or Broker Dealer custodian.

High income multi-asset class portfolios are designed or suitable for "long term investors" seeking high current income from dividends and interest. The annual reinvestment of income adds to the growth of ones wealth and to producing stable and growing retirement income.

CMA Portfolio Strategies are structured to hold only exchange-traded high dividend common stocks, Real Estate Investment Trust (REITs) Master Limited Partnership (MPLs), Preferred Stocks and Corporate Bonds of major companies across many economic sectors or industries.

All securities used in CMA Portfolio Strategies trade on the New York Stock Exchange (NYSE) or other public exchanges.

The "high income portfolio" representation means that when the portfolio is purchased for an investor's account, the custodian states the anticipated "Estimated Annual Income" to be received from the investment holdings, as calculated from the past 12 months of trailing income collections recorded from each security's income payment history. The "percent value" is determined by dividing the Estimated Annual Income dollar amount by the Current Market Value of the portfolio holdings.

The reference of the term "high income" means that the portfolio income can substantially exceed that of: Money Market Funds, CDs, US Treasury securities and the average dividend yield of the S&P 500 stock index that has an average approximate 2% annual dividend yield.

Common stock share values can have high fluctuations in share price values due to changing economic and financial market conditions.

Portfolio assets include Par Value corporate debt (bonds) securities, which are senior to common shares of the issuing company, and also include the preferred shares of publicly listed companies or their subsidiaries. These preferred and bond securities are senior to the issuing company's common stock in their entitlements to a contractual redemption by the issuer at Par Value (Original Issued Price) and they have a Senior Claim, ahead of common stock holders, on the income of the company for paying bond interest and preferred dividends. These securities can preserve capital better than common equities so as to leave a financial legacy to one's heirs.

WHICH ISSUERS MAKE UP THE SECURITIES OF A MULTI-ASSET CLASS PORTFOLIO?

Some common equities used in are the common stocks of: Kimberly Clark, Royal Dutch Shell, Atlantic Power, Southern Copper, Frontier Communications, Carrefour, BAE Systems PLC, Deutsche Telecom, Pitney Bowes, New Zealand Telecom, plus many others.

Real estate Investment Trust issuers include: Common wealth REIT, Duke Realty Corp, Senior Housing Properties, Hospitality Properties, Plum Creek Timber, plus many others.

Master Limited Partnerships include: Boardwalk Pipelines, Energy Transfer Partners, Ferrellgas Partners, Linn Energy, NuStar Energy, plus many others.

Issuers of the corporate debt securities include: Boeing, CBS Corp, Ford, Goodyear, ING, JC Penney, Royal Caribbean Cruises, Bristol-Myers, plus many others. Preferred share issuers include: Apartment Investment & Management, Commonwealth REIT, Healthcare Properties, Lexington Realty, LaSalle Hotels REIT, Dayton Power & Light, El Paso Energy. All issuers of CMA Portfolio Strategy holdings have been in business as a public company, or a subsidiary of a public company, for at least 5 years and others for many decades. Security selections are diversified across many different industries, sectors and countries Thus creating diversification to preserve capital.

HOW CAN INVESTORS UTILIZE MULTI-ASSET CLASS PORTFOLIOS?

Investors should have "asset class" diversification to lower investment risk and preserve capital. This means that their investment funds are put into different asset classes such as: utility stocks, high dividend stocks, income real estate securities, energy, commodity and mining stocks, fixed income bonds and preferred shares, and near-cash money market funds.

HOW IS PORTFOLIO INCOME EARNED AND COLLECTED?

The trust company or broker dealer custodian of an investor's account is collecting all the dividends and interest payments that are paid out by securities' issuers. It is credited to an investor's account either monthly, quarterly or semi-annually as it is paid. Dividends on common stocks, preferred shares, MLPs and REITs are usually paid quarterly, yet some pay monthly distributions to shareholders. On corporate bonds, the interest payments are paid semi-annually. Income is held in a "money fund account" or in Cash within the investor's account. That income can either be paid out to the investor as it is earned and collected, or be re-invested by the investor or his financial advisor into more income producing investments.

CMA Investor Update Reports

Capital Management Associates has been publishing "CMA Investor Update" for 5 years and distributes it to clients and the public as a FREE Subscription, with no obligation to the Subscriber.

CMA Investor Update report is published to "educate and coach" the average investor about understanding asset classes and securities therein. The CMA Investor Update is issued approximately bi-weekly and regularly discusses global economic and financial events and trends that influence investor's stock and bond portfolios. Readers of the Update can learn to do basic high income investing in order to "do-it-yourself", or to better understand how to employ a money manager or Registered Investment Advisor to do the high income investing for them.