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OPERATIONS ANNOUNCEMENT  & INVESTMENT MANGEMENT SERVICES
Capital Research Advisors, LLC will continue to offer the same services as we have for the past 17+ years.

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Investment Advisory     Asset Management     Financial Planning

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4185-B Silver Peak Parkway, Suwanee, GA 30024

Tel: 770-925-1000 | Fax: 770-932-9685 | Email: info@capitalresearchadvisors.com



 

 

CORONAVIRUS ANNOUNCEMENT &
INVESTMENT PROCESS DURING COVID-19

 

     Capital Research Advisors, LLC will continue to offer the same services as we have for the past 17+ years. Our portfolio management systems are continuing to meet the daily needs of all our clients and our review of models has continued without any issues.

     We are available by email, phone and video chat when needed.  We can schedule video chats via join.me.

     From a client standpoint, our job is to create portfolios which can minimize larger downside volatility. So far, we believe our quantitative tactical portfolios have fared well as we have looked for defensive allocations to possibly allocate funds to. As of this reading, we are currently using some larger than average cash positions in our tactical portfolios as well as defensive holdings and assets which are designed to rise under large banners of stress which markets can and do get under at certain times.

 

     The discussions we have had in our monthly newsletters have been reviewing this idea where markets are overpriced and/or going up even though earnings from companies have not been rising as of late. Adjustments have been made and currently are being made which is consistent since the inception of CRA-LLC when certain key factors motivated Jim and I to start CRA-LLC back in 2002.

     We believe the multi-model set up we have, while not the traditional buy & hold strategy has traditionally been well equipped at handling higher levels of volatility. We manage this volatility mitigation both by changes in weightings which we make to our models, as well as the fully different design to each model from it’s other siblings which can help to override the other models during periods of downward volatility.

 

    We believe that there are substantial risks to the economy building as this virus continues to grip our nation. Small business will be greatly affected, but this will pass on through to the largest of corporations as well. The broad section of the corporate bond market, from very high quality to low-quality bonds, has suffered substantially. Some of the bond indices are down over 15% Year to date.  We do anticipate corporate bond defaults to be as much as three times higher than they were in the years after 2008.
 

     Should markets turn up (we don’t see this as a bounce-back quick situation at all on a broad market basis) we have the opportunity to see potentially substantial returns. We have also been able to see strong returns in treasuries over the past several months and feel over an open time spread, more is likely happen.  


BUSINESS CONTINUITY

     As we continue to keep a close eye on the coronavirus (COVID-19) outbreak in the United States, we are taking proactive steps to help ensure the safety of staff and clients both while still attempting to maintain security and work continuity for our clients. For all those that have been impacted directly by the virus, our thoughts and our prayers are with you.
 

    In light of the recent developments of the coronavirus disease (COVID-19), CRA-LLC Asset Management, Inc. continues to review and test our business continuity plans to ensure continuous operation of CRA-LLC critical services and prompt response to any business disruption.
 

     Our main communication channels will not change. If communication lines change, these will be promptly provided.
 

     No impact is expected on electronic communications channels such as emails, buying or selling of holdings client account management.  Accounting and compliance support will be provided by our usual channels.
 

     Below are the five key preventive measures we are taking and recommend for our clients to follow to ensure optimum safety as well as continuity of business operations.
 

1. Review our Business Continuity Plan.
 

2. Verify key employees have documentation on and have tested remote access capabilities; this includes ensuring employees have adequate remote access resources;
 

3. Contact with custodians, service providers and key partners regarding their business continuity efforts and disaster recovery programs;
 

4. Encourage staff who have any concerns about office presence to feel free to work outside the office at a place of their choosing which meets their needs.
 

5. Provide multiple elements of sanitization of the office in all areas;
 

6. Supply disinfecting wipes to use each day to keep workspaces clean;
 

7. Follow the guidance of the Centers for Disease Control (CDC) and Prevention and the World Health Organization (WHO) policies.
 

     We will continue to monitor the changing landscape and provide updates as we deem appropriate. Please do not hesitate to contact your CRA-LLC trusted contacts with any questions.
 

     This commentary has been prepared for informational purposes only and should not be construed as an offer to sell or the solicitation to buy securities or adopt any investment strategy, nor shall this commentary constitute the rendering of personalized investment advice for compensation by CRA-LLC Asset Management, Inc. (hereinafter “CRA-LLC”). This commentary contains only partial analysis and should not be construed as CRA-LLC general assessment or outlook with respect to the topics discussed herein.

     This commentary contains views and opinions which may not come to pass. To the extent this material constitutes an opinion or assumption recipients should not construe it as a substitute for the exercise of independent judgment. This material has been prepared from information believed to be reliable, but CRA-LLC makes no representations as to its accuracy or reliability. The views and opinions expressed herein are subject to change without notice. Returns for specific CRA-LLC portfolios are available upon request.


 

     It should not be assumed that investment decisions made in the future will be profitable or guard against losses, as no particular strategy can guarantee future results or entirely protect against loss of principal. There is no guarantee that the strategies discussed herein will succeed in all market conditions or are appropriate for every investor. Investing in CRA-LLC portfolios involves risk, including complete loss of principal. General portfolio risks are outlined in CRA-LLC’ Form ADV Part 2A and specific strategy brochures, which are available upon request. Clients and prospective clients should review these risks with their financial representative before deciding to invest in CRA-LLC portfolios. 

     We very much look forward to a migration back toward daily live which many are much more comfortable with and accustomed to in terms of daily schedules, daily functioning and interactions with those we are in family with, work with and choose to make a key part of day over day life. We just wanted to remind clients that we are here and our plans have been laid out and tested to be available to you as much as we have always been to help meet your needs.
    


 We remain watchful. 


Ken Graves, Chief Investment Officer

Capital Research Advisors, LLC
 
 

 

CaptialResearchAdvisors.com 

Capital Research Advisors, LLC, 
4185 B Silver Peak Parkway, 
Suwanee, GA 30024 
770-925-1000 
800 -767- 5364 
All rights reserved

 



 

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This report/summary is to be considered general in nature, reflects our opinions and is based on our best judgment at the time of writing. All information is deemed to be from reliable sources but we cannot guarantee its accuracy. No warranties are given or implied as to their promise of occurrence in the future or their accuracy. It is the readers’ responsibility to decide if any of our opinions are suitable for their own individual situation, and in what manner to use the information. No specific decisions should be made based on this report. These opinions should not be construed as a solicitation for any service. Past performance does not guarantee future results. The opinions expressed in this piece are those of the author and do not necessarily reflect the opinions of Ceros Financial Services, Inc.

Securities offered through Ceros Financial Services, (Not affiliated with Capital Research Advisors, LLC) 1445 Research Boulevard Suite 530 Rockville, MD

(866) 842-3356 Member FINRA/SIPC

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IMPORTANT DISCLOSURES

All the information in our newsletter is believed to be reliable and much of it is based on the proprietary research of Capital Research Advisors, LLC itself. However, because of the volume of information we review and the frequency with which it changes the information can only be provided as is on a best efforts basis. The information is not intended to be actionable investment research and therefore should not be used as such. Sources for this information include, but are not limited to, CBS MarketWatch, Big Charts, Bloomberg, Streetscape, Money/CNN, Futuresource, Stock Chart, Yahoo Finance, AmiBroker and http://www.newyorkfed.org/

CaptialResearchAdvisors.com

Capital Research Advisors, LLC,
4185 B Silver Peak Parkway,
Suwanee, GA 30024
770-925-1000
800 -767- 5364
All rights reserved







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Capital Research Advisors, LLC · 4185 B Silver Peak Parkway · Suwanee, GA 30024 · USA

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