The Palm Beach Post from West Palm Beach, Florida on December 6, 1997 · Page 96
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The Palm Beach Post from West Palm Beach, Florida · Page 96

West Palm Beach, Florida
Issue Date:
Saturday, December 6, 1997
Page 96
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The Palm Beach Post SECTION S SATURDAY, DECEMBER 6, 1997 - hjsioe WEEKEND V AV - ' j? X V v STOCKS Check out charities before writing the check, Charles Jaffe says. PAGE 21S ; : Susan Antilla A little P.R. goes a long way for firm I A look at the most noteworthy funds In America. By Upper Analytical Services, Inc. and The Associated Press. Pegasus Intermediate Bond Fund (Class I) The fund seeks to maximize total rate of return while providing relative stability of principal by investing predominantly in intermediate-term debt securities. Investors searching for safety in the wake of the stormy Asian markets are looking toward short-intermediate U.S. bond funds. Of these funds, one of the brightest stars is the Pegasus Intermediate Bond Fund, which boasts a long history of outstanding performance. Fund family MBDFirst Chicago I Phone 80O688-3350 ; Adviser First National Bank of Chicago Portfolio manager Douglas Swanson, since 1991 : Fund began 1991 J Total net assets $482.5 million as of Oct.3l Minimum first investment $1,000 Load (maximum) None Redemption fee None 12b-1 plan None Expense ratio 0.67 Short to intermediate U. S. government bonds The fund is ranked No. 1 out of 40 funds for the 5-year period ending Nov. 26. It has returned 39.59 percent vs 29.27 percent for the average fund in the short to intermediate U.S. government funds objective. For the one-year period, it is ranked No. 1 out of 86 funds, returning 7.41 percent of total net assets Top holdings (As of Dec, 31, 1996) Top sectors Government AAA A rated AA rated Note: Funds must have live years of performance history in order to be evaluated. Lowering risks while raising returns The Pegasus Intermediate Bond Fund invests primarily in United States government bonds with dollar-weighted average maturities of one to five years. It has enjoyed tremendous success since its inception in June 1991. For the 12-month performance period ending Oct 31, the fund has a yield of 6.40 percent 77 basis points higher than the short to intermediate U.S. bond fund objective average of 5.63 percent Furthermore, it is the No. 1 performer in both the one-year and five-year performance periods ending Nov. 26. The Pegasus Intermediate Bond Fund's strategy is to match the Lehman Brothers Intermediate Government Corporate Index. By consistently keeping the duration of his fund within plus or minus 5 percent of the Lehman Brothers Index, portfolio manager Doug Swanson keeps duration neutral, thereby reducing interest rate risk. However, the old rule of finance, less potential risk means lower potential return, does not necessarily hold true when talking about the Pegasus Intermediate Bond Fund. According to Swanson, there are two main reasons the fund manages to produce high returns without adding unnecessary risk. First Swanson concentrates on investing in high quality holdings; 97 percent of the funds holdings are either United States government securities or AAA rated corporate bonds. Second, he finds undervalued securities with superior riskreward characteristics. Recently, Swanson's investment style has produced positive returns. In his never-ending quest for a good value, Swanson increased holdings in asset-backed securities and mortgaged-backed securities, while reducing the amount of corporate bond holdings. Swanson found the asset and mortgage backs to be heavily undervalued and corporate bonds to be overpriced. His focus on high quality holdings has also proved a good strategy. Swanson has begun to see a shift away from lower quality paper into more stable, higher quality securities. As for a long-term outlook for the United States economy, Swanson does not like to speculate, but he suspects the volatility in Asia may lead to a deflationary pressure in the coming months. - By Upper Analytical Services of total net assets 96.1 2.2 . 1.7 of total Asset allocation net assets Common 0.0 Convertibles 0.0 Bonds 96.6 ' Cash & Equivalents 3.4 Other 0.0 Treasury notesbonds , J 47.8 GNMA, other mortgage bonds 34.3 Asset-backed H 10.1 Corporate notesbonds 3.2 U.S. Dollar-denom. foreign govt 1.2 .' The biggest back-from-the-dead news of the year is that of U.S. Wireless Data Inc., a company that figured out resuscitation is as easy as finding the right public relations guy. ; U.S. Wireless is an Emeryville, Calif., company that sells those little machines vendors use to find out whether you're a good credit risk or a bum. Though the records say the company is a mess, its stock has leaped from 81 cents on Aug. 4 to $8.75 Oct. 2. It now trades in the $4 range. Aug. 4 wasn't just a bottom for the stock. It also happens to be the day U.S. Wireless Data took on John Liviakis as its PR man. ; Liviakis is a controversial type known to have a network of stock brokers who pant on learning he's taken on a client. And panting appears to be what they're doing over U.S. Wireless shares. U.S. Wireless has sought out a niche of the credit-checking business that caters to vendors who can't get easy access to a phone line flea markets, dating services ... you get the idea. Use the company's cellular-based gizmo, and you can check the same information that Macy's plugs into but without the wires. When Liviakis, who runs his investor relations firm out of Sacramento, signed on as investor relations counsel, he promised to represent the ailing company "in investors' communications and public relations with existing shareholders, brokers, dealers Please see ANTILLA22S f Pegasus Intermediate Bond Fund (Class I) On a scale of A to E How did this .iwm- objective rank? jf How did this fund rank? 14000 , S BCSQ yr 65SQ am 2000 i i . i A Current Market C Last Bear Market D - Last Bull Market D (As of Nov. 26) Avg. for all funds In obj. Cumulative This return fund lYear 7.41 5 Years 39.59 10 Years NA 12-Month Yield 6.40 ' ' ' ' 'ft If you had invested $2,500 five years ago, and added another $500 every quarter, this would be the result: $14,888.69. The total value includes change in share price, reinvestment of dividends and capital gains. It is not intended to portray the future performance of this fund or any fund. 5.67 29.27 98.82 5.68 Sprint. Sprint PCS" i GOOD NEWS FROM LR.S. ! ! Recent tax law changes will reduce your estate taxes and in some cases eliminate them entirely. This will be possible, provided your willstrusts have been properly drafted to maximize the tax law benefits. Plan on attending our TAX STRATEGY SEMINAR. THINK OF IT ASA PORTABLE ANSWERING MACHINE NTRODUCING iMimmssmMtmmr With mail-in coupon. Requires purchus o! Samsung SCH-1Q00 or SGH-1800 Msd and ssrvica activation with Sprint PCS M betweso 11397 tnd 122497. certain restrictions apply. See store for details., POCKETALK . i W PCS Wireless ((communication Phone Now, you can hear, store and retrieve messages in the caller's own voice. Right in the palm of your hand. 99 alphanumeric memory 120-minute digital talk time 20-hour standby time Weighs only 7.7 02. r IMPROVING YOUR WILLS & TRUSTS Utilizing new tax laws for tax reduction Elimination of double taxation on large estates Protecting inheritance from divorce ADVANCED STRATEGIES FOR TAX REDUCITON Re-stmcturing the IRA Maximizing the Credit Shelter Trust Forming a Family Bank to save taxes Discounting gifted assets FAMILY LIMITED PARTNERSHIPS Are they in trouble with IRS? CHARITABLE REMAINDER TRUSTS Law changes reduce appeal ft FREE 'il SS . u u o $30 Leather Case with Purchase SCH1000KHS ofphonei Time: Thursday, December 1 1th, 1997 Time: Wednesday, January 1 4th, 1 998 10:00 AM & 2:00 PM 10:00 AM & 2:00 PM Sprint PCS Prepaid Cards Are Now Available Purchase them in $20 $50 and $100 Increments THE WIRill ! ! SPECIAL INTRODUCTORY PRICE ! CENTER INC. 372 N. Congress Ave. Boynton Beach Place: Airport Hilton, 150 Australian Avenue, West Palm Beach, Florida Off Southern Blvd. (Exit 50) just 1 block West of 1-95 Speakers: Richard A. Schott Attorney Michael D. Tannenbaum Brokers Clearing House, Inc. Estate & Tax Attorney For reservations call Toll Free (888) 382-2272 This workshop is designed for individuals with a net worth of $ 1 .5 million or higher. WEST PALM BEACH DELRAY BEACH FT MYERS NAPLES VERO BEACH 733-70?i $149 Service $24.95 includes 800 number j Vlith thie rminnn Pyniro 131 QH I

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