67 WALL STREET, New York - May 9, 2014 - The Wall Street Transcript has just published its Investing Strategies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Small Cap Investing - Value Investment - Investment Risk Management Strategies - Long-Term Investing - High-Quality Companies - Investing in Agriculture - International Microcap Investing - Low-Volatility Investing
Companies include: EMC Corporation (EMC), Apple Inc. (AAPL), Amgen Inc. (AMGN), Time Warner Cable Inc. (TWC), Comcast Corporation (CMCSA), The Home Depot, Inc. (HD) and many others.
In the following excerpt from the Investing Strategies Report, an expert analyst discusses the outlook for the sector for investors:
TWST: To get started, it would be helpful to have a brief history of MAI Wealth Advisors since this is a new fund that's being offered.
Mr. Shalov: So let me tell you a little bit about the background of MAI and talk about the genesis of the fund, why did we do this and what problem are we trying to solve. The background of MAI is that we got started in 1973, and originally MAI stood for McCormack Advisors International. The firm was part of another firm called IMG. Both IMG and MAI were formed by Mark McCormack, who was the first person to really get into the sports-representative area. He was an agent for golfers starting out, going back to when his college roommate, Arnold Palmer, needed somebody to represent him, and Mark filled that role.
Out of that came a business where IMG was representing golfers, and then tennis players and other professional athletes getting in team sports, and McCormack built a huge empire representing sports players. IMG represented them in their contracts, and MAI handled all of their financial affairs, their investments, their tax matters, paying their bills, so that the athletes could focus on their athletic careers. That flourished through the 1970s, 1980s and 1990s until about 2003 when Mark McCormack passed away and things changed; IMG was sold, and MAI was not part of that sale, so the businesses split.
In 2007, MAI was sold to the current group of owners led by Rick Buoncore. The firm grew from approximately $800 million in assets in 2007 to where we are today, which is over $3.5 billion in assets. The firm broadened its target markets over the past few years to include clients other than the athletes. We still service many of our legacy sports clients, but we added wealthy families, business owners and corporate executives to our roster of clients.
Also in the 2007, 2008 and 2009 timeframe, some proprietary strategies started, of which Dividend Plus+ is one, and it's the most visible one now because we have decided to take the Dividend Plus+ strategy to the institutional market. By institutional market, I mean registered investment advisers, multifamily offices, family offices and financial advisers, brokers/dealers -such as the wire houses - and consultants, who advise institutional investors.
We've received interest about our Dividend Plus+ strategy from other financial advisers. We understand the pain points of their clients because we have clients with similar pain points. And what I mean by pain points are that we're in a very unique environment with historically low interest rates, and we have clients who seek portfolio income while trying to minimize the amount of risk they're taking. It's an unsettling environment for clients and their financial advisers, and we understand that very well, and that's why we created Dividend Plus+ back in 2009.
TWST: Can you provide some insight into the strategy and philosophy of Dividend Plus+?
Mr. Shalov: The Dividend Plus+ strategy is a risk-managed, liquid alternative-investment vehicle that seeks to preserve capital and provide durable portfolio income without being dependent on directional equity markets. In addition...
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