top of page

August Investment Update Please Read

Good Afternoon,

I have a lot to share this month so I hope that you will at least scan everything over especially regarding a couple of investment changes that may pertain to your accounts which are included at the beginning.

LPL Cyber Fraud Guarantee

As cyber-threats continue to evolve and make headlines, LPL prospects, financial professionals, and clients have expressed an interest in LPL’s capabilities and position relating to potential cyber incidents and the impact on LPL accounts. LPL has taken that feedback and announced a Cyber Fraud Guarantee that reaffirms our commitment to our clients. Please reference the attached flyer for additional details.

Cyber Fraud Guarantee -2022 - Advisors
Download PDF • 255KB

New Mutual Funds in SAM II Accounts

The majority of our LPL SAM II accounts are invested in one of our equally weighted balanced mutual fund strategies. Each strategy has equal portions allocated between various balanced mutual funds with a goal of diversification among several highly rated managers.

In the coming days, we will be reallocating up to 5% of these portfolios to the Eventide Gilead Fund (ETILX) as a long-term holding to take advantage of investment themes that are changing the world and enabling human flourishing. These themes may include 5G & Data Infrastructure, AI, IoT, Cloud Computing, Clean Energy, Healthy Food and Agriculture, Cybersecurity, Financial Security & Access, Healthcare, and Life Sciences. I see this as an opportune time for an investment of this nature. If you would like more information, then please let me know and we will be more than happy to schedule a time to discuss the management of this mutual fund in more detail.

Morningstar Hare Strategy Update

Many of our clients own the Morningstar Hare Stock Basket Strategy either at LPL or Charles Schwab. Matthew Coffina, Portfolio Manager of the Morningstar Hare and Capital Appreciation Portfolios since 2013, left Morningstar as of Thursday, June 30, 2022. The Hare portfolio has had 3 portfolio managers since its inception. All did an excellent job at managing the portfolio. The one thing that has been constant has been the Morningstar process which is summarized below.

  1. Focused investing: only buying stocks that fit exactly what we are looking for.

  2. Investing in companies that have competitive advantages versus their peers.

  3. Buying stocks that are trading at a discount to our fair value.

  4. Our Morningstar Analyst team does the research.

Matt Coffina was a great manager and a good communicator of this process. Morningstar will place another manager just like they did when previous managers left to ensure the portfolio keeps going strong. We will continue to monitor this development and let you know if there is anything to be concerned about.

Fixed Annuity Rates

Rising interest rates have been a tailwind for fixed annuity products. Fixed annuities can be a suitable alternative to CDs and cash. Current rates on fixed annuities with A-Rated insurance companies in the State of Florida are as follows:

  • Two Year = 3.15%

  • Three Year = 3.6% to 3.9% depending upon premium.

  • Five- Year = 4.25%

If you have cash on the sidelines or CD’s with lower interest rates, then it may warrant a discussion.

Visual Capitalist - How Experts Think About Bear Market Opportunities

Historically, market downturns have presented bargains for investors thanks to inefficient pricing and fear in the markets. Many investment greats such as Warren Buffet, Shelby Davis, and Peter Bernstein have made key investments during market downturns. This article and infographic demonstrate quotes from these individuals along with Winston Churchill, and the data behind their insights. You can link to this page here:

CFO of Florida issues Consumer Scam Alert “Pig Butchering” “Pig Slaughtering”

Chief Financial Officer (CFO) Jimmy Patronis warns Floridians of a recent cryptocurrency scam known as “pig butchering” or “pig slaughtering” in which victims are enticed to put more and more money into a fake cryptocurrency investment scheme only to “fatten them up” before a scammer disappears with vast sums of their cryptocurrency. This cryptocurrency scam is reportedly most often perpetrated on dating sites and social media as a new form of a romance scam.

Three tips from the Federal Trade Commission (FTC) to avoid crypto scams:

  • Only scammers demand payment in cryptocurrency. No legitimate business is going to demand you send cryptocurrency in advance – not to buy something, and not to protect your money. That is always a scam.

  • Only scammers will guarantee profits or big returns. Don’t trust people who promise you can quickly and easily make money in the crypto markets.

  • Never mix online dating and investment advice. If you meet someone on a dating site or app, and they want to show you how to invest in crypto or ask you to send them crypto, that’s a scam.

Until next time, enjoy the rest of summer, stay cool, don’t ask how the sausage is made, and feel free to call or write anytime that we can be of service. Feel free to pass this information along and thank you for your business!

Kind Regards,

Have a friend, co-worker, or family member who recently shared about retiring, changing jobs, needing a financial plan, investment review, or 401(k) rollover? We offer a complimentary consultation for anyone you think could benefit from our services.

David J. Blount


Investment & Insurance Planning Services, LLC

261 Plaza Dr. Suite B

Oviedo, FL 32765


Securities offered through LPL Financial, Member FINRA/SIPC

The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions, and it may not achieve its investment objective.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

CDs are FDIC insured to specific limits and offer a fixed rate of return if held to maturity. Annuities are not FDIC insured. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Withdrawals made prior to age 59 ½ are subject to 10% IRS penalty tax. Surrender charges apply. Guarantees are based on the claims-paying ability of the issuing insurance company.

54 views0 comments


bottom of page