Unique Strategies

We have various specific equity strategies that fall under one of these two categories, Tactical or Fully Invested, or a combination of the two.

*Please see our ADV2 under Resources for each strategy description and investment description*

PREMIER WEALTH TACTICAL and PREMIER WEALTH TACTICAL CORE

The impact of a bear market on a stock portfolio can be devastating to individual investors. It can take investors years to recover their losses. Premier Wealth Tactical and Premier Wealth Tactical Core aim to preserve capital during times of high risk through the use of cash and cash equivalents. The percentage of the strategies invested in the stock market may vary substantially depending on Churchills judgment as to the prevailing risk in the market. When Churchill believes risks in the stock market are low, Churchill will increase the exposure to equities to attempt to take advantage of growth opportunities. When Churchill believes risks in the stock market are high, all of or a portion of the equity exposure may be moved to more stable short-term fixed income instruments and cash equivalent alternatives in order to protect capital.

Premier Wealth Tacticals equity or stock market philosophy can best be described as earnings growth driven under its fundamental approach within a technically oriented framework. Premier Wealth Tactical purchases the stock of companies it believes will have significant price appreciation. Additionally, Premier Wealth Tactical seeks to buy those companies in which Churchill has a sufficient degree of comfort, so they can be held with confidence for the long-term when Churchill believes market risks are low. Churchill’s objective is to own companies with strong competitive positions and formulas for growth that are proven and sustainable. Once a stock is purchased, in-depth research of the company continues ensuring that the fundamentally sound formula remains in place.

Premier Wealth Tactical Core will invest in exchange traded funds, domestic or foreign, that Churchill believes have the potential for significant price increases. In some circumstances, Premier Wealth Tactical may significantly utilize exchange traded funds, some of which may purchase foreign securities and stocks on foreign exchanges, to augment the strategy. Note, other mutual funds could be purchased within these strategies if it is considered to be in the best interest of the client due to account size or to acquire money market alternatives. Furthermore, a Client may choose to combine various allocations of Premier Wealth Tactical Core and ETF Sector Rotation within one account.

MAXIMUM GROWTH TACTICAL

Churchill offers Maximum Growth Tactical as a more aggressive tactical option to our Premier Wealth Tactical strategy.

Churchill recognizes that, during each stock market cycle, there are times when perceived low risk opportunities exist to maximize returns. Maximum Growth Tacticals aim is to take advantage of these opportunities and achieve superior returns by increasing exposure to equities and through the use of leveraging techniques. When opportunities are present, Maximum Growth Tactical may purchase investments through the use of margin (for accounts with margin agreements) or utilize other investments, such as exchange traded funds (ETFs), which, in turn, engage in leveraged and margin trading. In some markets, some of these ETFs or mutual funds may purchase foreign securities and stocks on foreign exchanges to augment Churchills strategy. While Maximum Growth Tactical is likely to own larger, more concentrated equity positions as compared to a Premier Wealth Tactical Account, its bottom-up equity purchasing philosophy similarly applies the same fundamental approach within a technically oriented framework.

Equally, this strategy recognizes that the impact of a bear market on a stock market portfolio can be devastating to individual investors. Thus, the percentage invested in the stock market may vary substantially depending on Churchills judgment as to the prevailing risk in the market. When Churchill believes risks in the stock market are high, all of or a portion of the equity exposure may be moved to more stable short-term fixed income instruments and cash equivalent alternatives in order to protect capital.

TACTICAL OPPORTUNITY

Tactical Opportunitys objective is to out-perform the S&P 500 by identifying individual stocks which have positive technical characteristics suggesting a short-term opportunity. The Strategy combines a group of stocks found from within the S&P 500 with stocks from the entire universe of domestically traded stocks. Using a stock filter, the stocks found within the S&P 500 tend to be middle to large capitalization stocks, while those found from the broader universe will often be smaller, more thinly traded stocks.

In addition, Tactical Opportunity may complement its holdings with the use of exchange traded funds (ETFs) in order to increase exposure to the equity market. If the indicators dictate that risks are such that accounts can be fully invested, the strategy first looks to find individual stocks to purchase. However, if the strategys indicators do not identify enough stocks to purchase to be invested to the percentage level it is suggesting, then ETFs may be utilized to do so. Similarly, as the strategy identifies risks and a determination is made to decrease exposure to the equity market to protect capital, individual stocks and ETFs may be sold. While a portion of the equities typically found in the S&P 500 universe will stay largely invested throughout both bull and bear markets, at times cash and cash equivalents may be utilized for a portion of the account during extended periods if the strategy is not identifying equities that have the characteristics needed to maintain them in the portfolio. As a result, the strategy does aim to provide some protection in high risk down markets. Under this strategys bottom-up approach, securities may be sold as a determination is made that they are not technically performing. In addition, a trailing stop-loss may be utilized to sell equities.

EQUITY DIVIDEND INCOME

The Equity Dividend Income strategy is designed for clients seeking to combine income from equities with their potential for growth. The strategy seeks to put together a fully invested equity portfolio with a well diversified group of high quality stocks paying a dividend higher than the average found in the S&P 500. The strategy looks to include high quality companies that have a high probability of continually growing dividends that are paid to shareholders. Earnings stability and future earnings prospects are reviewed for dividend payment stability and potential for long-term capital appreciation.

In addition to strong fundamentals, the portfolio also wants to hold those dividend paying stocks that are more technically favorable with positive relative strength as compared to other dividend paying stocks. While this strategy stays fully invested and is subject to market risk, the strategy looks to diversify among several investment sectors and may utilize a stop loss philosophy to help rotate away from stocks within under performing sectors.

ETF SECTOR ROTATION

ETF Sector Rotation’s philosophy is that certain sectors in the market tend to out-perform and under-perform for prolonged periods of time. The Investment Management Team believes we can achieve superior returns by aiming to invest in the out-performing and often under-weighted sectors of the market.

ETF Sector Rotation may initially purchase an exchange traded fund (ETF) that is comprised of all equities on the S&P 500. Once Churchill has identified specific sectors in the S&P 500 that it believes have the potential to outperform the S&P 500, Churchill may sell a portion of or all of the this ETF to overweight the account in those sectors by purchasing sector specific ETFs. The Investment Management Team uses a variety of technical and fundamental indicators to identify the sectors that Churchill believes will exhibit the potential for significant price appreciation versus the overall market. While ETF Sector Rotation is typically fully invested and subject to market risk, certain sectors will be employed as defensive positions with the aim of outperforming the index in down markets.

Based on a Clients needs, individual goals, and chosen allocation, Churchill may also invest a portion of the account in various stylistic ETFs (i.e. large cap, growth) and International ETFs (Emerging and International Markets) consistent with Churchills analysis of the market. Furthermore, a client may choose to combine various allocations of Premier Wealth Tactical Core and ETF Sector Rotation within one account.

EQUITY GROWTH AND VALUE

The S&P 500 is divided into nine sectors: Energy, Utilities, Basic Materials, Technology, Financials, Healthcare, Consumer Staples, Consumer Discretionary, and Industrials. Each of these sectors historically performs better or worse within certain stages of market cycles. The S&P 500 typically over-weights or under-weights each sector based on past successes or failures, which may increase volatility and lower returns with index funds.

Equity Growth and Values goal is to identify and purchase individual stocks across these nine sectors with the opportunity to out-perform the S&P 500 and to minimize short-term gains by potentially holding each position for 1 year. It seeks to carry out this goal by identifying what Management perceives to be the top performing stocks in various sectors of the S&P 500 by using a variety of technical and fundamental indicators. The strategy aims to let the better stocks run while employing a relative stop-loss system to limit the downside of mistakes. Of course, while it does aim to minimize short-term capital gains, stocks may be sold prior to one year creating tax liabilities. While Equity Growth and Value is fully invested and subject to market risk, stocks within certain sectors will be employed as defensive positions with the aim of outperforming the index in down markets.

PREMIER WEALTH TACTICAL CORE / ETF SECTOR ROTATION HYBRID

By combining Premier Wealth Tactical Core with ETF Sector Rotation, clients receive the benefit of the statistically tested indicators of ETF Sector Rotation coupled with the fundamental and technical analysis of Premier Wealth Tactical Core.

Premier Wealth Tactical Core has been successful in reducing the impact of numerous bear markets throughout its history by utilizing cash and cash equivalents. Premier Wealth Tactical Core seeks to deliver superior returns in favorable market periods, while protecting investment capital during unfavorable periods.

ETF Sector Rotation largely uses a quantitative systematic approach,taking the emotion out of investing. ETF Sector Rotation provides the ability to quickly reallocate and diversify its portion of your portfolio to keep up with the market leadership without taking on undue risk. ETF Sector Rotation largely stays fully invested through full market cycles aiming to purchase the leadership through exchange traded funds (ETFs) tied to the sectors of S&P 500.

Clients may elect to have a portion or all of their account allocated toward yield oriented instruments. The purpose of yield-oriented investments in a Balanced Account is to reduce volatility and risk while providing an underlying base of consistent returns to the portfolio. To accomplish the fixed income strategy Churchill places a tremendous emphasis on quality. Churchill pays close attention to the strength of the bond issuer, buys only investment-grade issues, and maintains diversification across industry sectors and issuers. Churchill generally ladders bonds with an average maturity of typically between three to seven years. Various money market dynamics, including yield curve, the major interest rate trend, and the bond call price, are extensively used in managing the yield approach. Accordingly, the average length of maturity as well as industry grouping and quality, may be adjusted from time to time by sales or swapping procedures. In addition, Churchill’s studies of the cycles of inflation, deflation, and money market conditions greatly influence the buying, selling, swapping and balancing of maturities for the yield investments.

Yield-oriented investments are made in a variety of investment-grade taxable and non-taxable instruments, such as US Government and government agency bonds, corporate bonds, municipal bonds, and certificates of deposit. At times, depending on the size of an account’s fixed income allocation, bond funds may be purchased in lieu of individual securities. Furthermore, when investing for individual accounts, Churchill pays close attention to individual account tax issues as we work to optimize returns on an after-tax basis.