After careful consideration of the client’s investment objectives, investment timeframes, and risk preferences, Palo Capital constructs a customized portfolio within one of the following account types:

• Capital Appreciation Accounts are invested with the objective of maximum long-term capital appreciation.  Assets in these accounts are invested primarily in individual equity securities without limitations based on market capitalization, style, country, or industry sector.  Investment in non-listed securities, such are private placements are prohibited.  While minimizing short-term volatility is not an explicit objective, during periods of perceived elevated market risk, Palo Capital may raise cash, use option strategies, or engage in short selling in those accounts where it is permitted.  Taxable accounts are managed with tax efficiency as an explicit consideration.   

• Balanced Accounts include a fixed income portion designed to reduce volatility or to provide for expected withdrawals.  The equity portion of Balanced Accounts is managed similarly to Capital Appreciation as described above. 

• Equity Income Accounts invest primarily in dividend-paying securities that are expected to realize dividend growth and/or capital appreciation.  In comparison to Capital Appreciation Accounts, Equity Income Accounts target higher income and lower volatility, with less emphasis on growth in capital.  In comparison to Fixed Income Accounts, Equity Income Accounts target higher growth and better protection against inflation, with less emphasis on current income and stability of principal.

• Fixed Income Accounts invest in high quality fixed income securities with durations appropriate to the individual client’s needs.