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ASSET ALLOCATION MANAGEMENT PROGRAM (AAMP)

AAMP incorporates all of PRI’s programs into one package. PRI develops an allocation between equities and fixed income. To develop an asset allocation, PRI evaluates the client’s income needs and need for capital growth.

The equity portion is invested in broad-based equity index funds. Fixed income is invested utilizing PRI’s fixed income programs. US Treasuries are the foundation of all AAMP portfolios. While Treasuries do provide yield, their most important use is portfolio protection. Unlike many other fixed income instruments, Treasuries can allow PRI clients to participate in cyclical bull markets that occur when the equity markets experience downturns, often called “flights to quality”.  All of this means that PRI clients enjoy the upside of the equity market while maintaining the protection of a Treasury portfolio.

Occasionally, PRI will use covered call writing against the equity portion of the portfolio to generate additional income. In addition, covered call options reduce downside risk of the underlying equity.

AAMP utilizes highly liquid asset classes to ensure that, if needed, the assets can be liquidated with little financial effect. Value averaging is employed with all changes or new investments with an emphasis on volatility reduction.