Q. - What is the Creative Investment Research, Inc. Diversity Portfolio?
A. - A portfolio of equity investments, or shares of stock, in large companies.
Q. - How can I get more information?
A. - You will need to register for the secure portion of the site. To register for more information, click here. This section contains information on account terms and conditions, fees, forms, and model investment performance. This section also gives you access to our SEC Investment Advisor Form ADV and allows you to open an account, if you choose.
Q. - Why do I have to register?
A. - To protect our current clients (and potential clients), SEC rules require we keep track of those who access the site. William Michael Cunningham is the investment advisor for this product. He is registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor. (Note that registration does not imply endoresment. The SEC has not approved or reviewed this investment.) SEC rules and regulations require that we insure maximum safety and confidentiality. The secure section of the site contains detailed information on our investing policies and procedures, our privacy policy, and our disaster recovery plans.
Q. - If I register, does that mean I have to open an account?
A. - No.
Q. - What type of account protections are offered to investors?
A. - The Securities Investor Protection Corporation (SIPC), a non-profit corporation that provides account protection and insurance to customers, will cover accounts up to $500,000. Through Lloyd's of London, institutional customers receive additional account protection.
Q. - What are some of the key benefits of the The Creative Investment Research, Inc. Diversity Portfolio?
A. - The portfolio includes familiar companies such as Sprint, Bank of America, Coca-Cola, Ford, and Procter & Gamble.
The portfolio combines the benefits of mutual fund investing (diversification, simplicity) with advantages of stock investing (tax management, corporate voting rights), while eliminating many of the disadvantages of both.
Q. - What About Investment Performance?
A. - More investment performance data is contained on the secure section of the website. From 1/19/06 to 1/19/07, the model portfolio returned 23.57% versus an 11.00% return for the stock market, as measured by a major stock market index.
NOTE: As stated above, all stock investments entail risk and volatility. This is a new product in a new category of socially responsible investing, so there is no historic track record of similar investment products. Nevertheless, The Creative Investment Research, Inc. Diversity Portfolio has similar stock exposures and sector weightings to many large-cap U.S. equity funds. Thus, we believe The Creative Investment Research, Inc. Diversity Portfolio will have a risk/reward profile that is broadly similar to the historic results of the S&P 500 Index. Over time, we believe that stocks in diversity friendly companies will provide attractive investment returns, possibly superior to the S&P 500. This thesis is untested, however, and even the past returns of the S&P 500 do not guarantee future results.
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