We balance low risk with market risk to reflect our client’s goals.

 

IMS offers two investment programs that cover the risk spectrum for most investors.

IMS Income is low risk and has occasional small declines.  Recovery is measured in months. IMS Five Funds is market risk and has occasional large declines.  Recovery is measured in years.

IMS clients control risk by how they allocate their assets.  Allocation based on suitability is the key to successful wealth management.

IMS Basics

IMS Income

IMS Income has been invested in high-yield bond mutual funds or in the money market for over 25 years.  The investment position is determined by a trend following algorithm developed during the summer of 1997.

The chart covers 25 years and two months, October 1997 through December 2022. 

580% The gain of the low-risk IMS Income program

 

553% The gain of the market risk S&P 500 Stock Index.

The Short-Term Objective

The short-term objective of IMS Income is to outperform Short-Term Bonds and Jumbo Certificates of Deposit over all five-year periods:

IMS Income (Initial Account) 580.0%
Short Term Bonds  VBISX 114.0%
Jumbo CDI 119.1%

The Long-Term Objective

The long-term objective of IMS Income is to keep pace with the S&P 500 Stock Index over several market cycles:

IMS Income portfolio trades are made between the green Money Market line and several high-yield mutual funds selected from the purple All High-Yield line. The result is the blue IMS Income line.

IMS Income (Initial Account) 580.0%
S&P 500 Stock Index (VFINX) 552.9%
All High-Yield (FastTrack) 247.2%
Money Market (FDRXX) 58.6%

Initial Account History

Historical Returns of the ​
IMS Income Initial Account
View a PDF of the historical returns of the IMS Initial Account invested in the IMS Income Program.
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IMS Five Funds

Mutual funds selected for the IMS Five Funds portfolio represent the broader stock market.

Forty percent of the portfolio is an S&P 500 Index fund. The remaining sixty percent is divided equally among the the four additional funds.

Income and VFINX chart

IMS Five Funds is not actively traded. The annual management fee is 0.4% compared to 1.2% for IMS Income.

The Four Additional Mutual Funds

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IMS Five Funds is not actively traded. The annual management fee is 0.4% compared to 1.2% for IMS Income.

IMS Income

IMS Five Funds

Suitable Combinations

We offer six investment combinations of IMS Income and IMS Five Funds.  Suitability is the key.  Clients are encouraged to select the combination for which an occasional IMS Five Funds decline of 50% or more is anticipated and accepted.

The six combinations are interchangeable once a year by e-mail request.  They are held in a single Equity Trust Company (ETC) custodial account.

Greater flexibility is available with two Equity Trust Company (ETC) custodial accounts.  The client determines the percentage in each account and can request adjustments between the two programs by e-mail.

Three ETC custodial accounts can include a client managed account.  Whether one, two or three accounts, the quarterly ETC reports include all investment activity.