Investment portfolios

Advertiser Staff

The Advertiser asked some of Hawai'i's financial professionals to create $100,000 investment portfolios for a theoretical client starting on April 1.

Today we report on how the portfolios have performed as of the close of the market on Friday and what the professionals who built them have to say about the market.

The professionals were asked to invest for a fictitious client who is 50 years old, a woman, married (husband is also 50 and both want to retire at 65), with a joint income from all sources of $150,000.

They have a net worth (including their home) of $1.3 million, and their assets owned for investment total $400,000. They are in the 31 percent tax bracket and want this $100,000 to be invested for growth.

These portfolios should not be viewed as recommendations. Selecting the right investment depends on your current situation, goals and tolerance for risk. Before investing, you should consult with a professional and read every relevant prospectus.

The theoretical portfolios were limited to purchases of U.S. stocks, mutual funds and certain bonds.

A flat $25 commission is charged on most trades and cash balances earn interest of 3 percent. Below we list a sampling of each professionals' holdings as of last week.

If you have any questions or comments, please call David Butts, assistant business editor, at 535-2453 or e-mail him at dbutts@honoluluadvertiser.com.

CHAD ADAMS
American Express Financial Advisors Inc.

• Suite 1100, Ala Moana Pacific Center, 1585 Kapi'olani Blvd., Honolulu, HI 96814. Phone number: 952-1222, ext. 1229.
• Years of experience: 4

Performance and top picks
Rank 3, total $114,950.78

FUND NAME and TICKER SYMBOL

• AXP Intermediate Tax-Exempt Fund Class A, INFAX
• AXP Growth Fund Class A, INIDX
• Liberty Acorn Fund Class A, LACAX
• Franklin Mutual Beacon Fund Class A, TEBIX
• Templeton Foreign Fund Class A, TEMFX

Comments: Step away from the investment noise generated by fear, greed and politics, and you just might hear the sound of the U.S. economy's engine humming. Between July and September 2003, America's economy expanded at an 8.2 percent annual rate, the fastest in almost two decades. This summer's increase in GDP, the value of goods and services produced in the nation, was the largest since the first quarter of 1984. Economic growth is helping stocks, too. Reported third-quarter results for about two-thirds of public companies have exceeded analysts' expectations. Such trends have the potential to create opportunities for long-term investors.

JIM ROGERS
Brookstreet Securities Corp.

• 419 South St., No. 121, Honolulu,
• HI 96813. Phone number: 524-8696.
• Years of experience: 16

Performance and top picks
Rank 1, total $137,670.38

FUND NAME and TICKER SYMBOL

• Geron Corp., GERN
• Introgen Therapeutics, INGN
• Imclone Systems Inc., IMCLE

Comments: It is cliché season in the stock market. Will we see "the Santa Claus" rally followed by the "January Effect?" December is a time to rebalance portfolios for tax reasons. Investors may sell their losers and purchase something else to take advantage of different tax strategies. In January, when employees get a bonus or retirement plan matching contribution, a lot of that money can end up in the markets. Rather than following a crowd or investing according to a cliché, I would rather do my own research and discount most of what I hear on TV or read in financial magazines.

JERRY SCHWARTZ
Arista Investment Advisors Ltd.

• Suite 1707, 841 Bishop, Honolulu,
• HI 96813. Phone number: 531-5665.
• Years of experience: 26

Performance and top picks
Rank 4, total $113,925.53

FUND NAME and TICKER SYMBOL

• Chiron Corp., CHIR
• Omnicare Inc., OCR
• Diamonds Trust, DIA
• Dodge & Cox Stock Fund, DODGX
• Pioneer High Yield Fund, TAHYX

Comments: Each day, around the world, billions of people labor to improve their material lives. This impulse is the driving energy of the financial markets. We create, build, produce, and circulate this energy to achieve our highest aspirations. As the world increasingly integrates and experiences economic interdependence, self-interest and other interest converge. The deeper meaning of the pursuit of happiness, embedded in the founding vision of a free people, is life's summum bonum, or highest good. This pursuit inspires a deep confidence in the future. Certainly, all people of goodwill share a vision for which we can give thanks. Happy holidays!

GEAL FUKUMOTO TALBERT
CLU, ChFC, Edward Jones

• Suite 403, 45-1144 Kamehameha Hwy., Kan'eohe, HI 96744. Phone: 247-2072.
• Years of experience: 17

Performance and top picks
Rank 2, total $131,437.92

FUND NAME and TICKER SYMBOL

• Tyco Intl Ltd, TYC
• Chico's FAS Inc., CHS
• Home Depot Inc., HD
• Harley-Davidson Inc., HDI
• Shuffle Master Inc., SHFL

Comments: This year, how about giving a Christmas gift that lasts? Rather than cash, shares of stock or mutual funds are an excellent way to get children (and adults!) started on investing. When buying stock for several people, you can save money on commissions by purchasing all the shares of stock in one account. Then have your broker transfer them to the appropriate accounts. There should be no charge for the transfer. Gifts of mutual funds will enable your recipient to add to their investment easily. The College 529 plan is a great way to give a gift and reduce your estate at the same time. Whatever you do, have a safe and happy holiday season!