 |
Who
is BTS?
BTS Asset Management Inc. is a registered investment advisor,
and is under guidelines of the Investment Advisors Act of 1940.
We have been servicing clients since 1979. |
|
Who makes
transactions?
Under the investor agreement, BTS is pre-authorized to make
all transactions. Although there is no guarantee of execution
on the signal date, BTS will make every effort to attain this
goal. |
|
What is your
fee structure?
See "Products
Page" for specific program fees. |
|
What are
the commissions on each exchange?
There will usually be commissions on the initial investment
at the mutual fund. Since BTS always stays within the same fund
family, there are no commissions on exchanges. Some funds charge
a nominal $5 to $10 exchange fee payable to the fund. |
|
Can an investor
cancel the program?
Yes. The program can be canceled at any time upon written notice
to BTS. BTS requests that investors give the program a minimum
three to five year "fair trial", as recent history
has shown there is usually a substantial move in the markets
within a three to five year period, wherein the value of BTS
programs can be demonstrated.. |
|
What
is the minimum investment?
The minimum investment for the Tactical Asset Allocation Program
is $25,000. The Strategic Asset Allocation Program minimum is
$25,000. |
|
What is the
extent of control that BTS has over a client's account?
BTS can only transfer assets between the funds that you have
selected. If you wish to liquidate the account or withdraw any
sum of money, please contact your financial advisor for instructions.
BTS is unable to redeem client assets. The account registration
always stays in the clients' name. You are also notified by
your mutual fund company or variable annuity company of any
activity in your account. |
|
What are
the mutual fund families that BTS can work with?
BTS can work with any mutual fund or variable annuity that does
not have burdensome exchange restrictions. Financial planners
are provided with a list of available funds. |
|
What is risk
management, and does it really make a difference?
In this context, risk management involves seeking to follow
trends in the market through analysis of quantitative economic
data. The objective is to seek to follow upward and downward
market swings and allocate assets accordingly. Assuming it was
correctly implemented, a risk management strategy could have
helped you avoid dramatic market losses from June 1983 to June
1984, from August 1987 to October 1987, and during the bear
market of 2000-2001, by being in a money market fund most of
the time. |
|
What is the
liquidity of the programs?
Upon request, a mutual fund must redeem shares within 5 business
days. If you need money quickly, it is available. |
|
Must I use
a financial advisor?
Yes. BTS programs are available only through registered representatives,
broker dealers, and financial planners. |
|
Why doesn't
my mutual fund make the moves itself?
Most mutual funds follow a type of buy and hold approach that
does not involve the type of tactical allocation similar to
that employed by BTS. Also, there may be transaction costs associated
with any trading in portfolio securities that a fund and its
shareholders will incur, which can be substantial in the corporate
bond market. |
|
Can BTS guarantee
results?
No. BTS cannot guarantee results, and past performance does
not imply future performance. However, BTS is disciplined in
its overall approach. Your account will always be in either
your defensive money market fund or your chosen aggressive fund. |
