Bank of America is investment advisor for new family of "life-style" mutual funds.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Sept. 27, 1995--Bank of America is the investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and for a new family of "life-style" mutual funds, which are designed to help consumers take the guesswork out of investing to achieve financial goals over specific periods of time. The new funds, called the Time Horizon Funds, consist of three portfolios. Each of these seeks to provide long-term investors Long-term investor A person who makes investments for a period of at least five years in order to finance his or her long-term goals. with maximum total return over a stated investment time period, while also increasingly emphasizing capital preservation as each fund approaches its target time horizon. -- Time Horizon Portfolio 1 is managed for individuals investing for a financial goal expected near the year 2005. -- Time Horizon Portfolio 2 was developed for investors who have financial objectives they wish to achieve close to the year 2015. -- Time Horizon Portfolio 3 targets goals expected to occur around the year 2025. Time Horizon Funds are sponsored and distributed by Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. Financial Group, Inc., which is unaffiliated with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. NT&SA, the Funds' investment advisor. "Time Horizon Funds managed by Bank of America should appeal to both first-time and sophisticated investors who are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a simple and convenient way to invest in mutual funds. We've designed the funds to take the anxiety out of the process of selecting the right fund at the right time because the funds are actively managed around time frames to help consumers achieve their long-term financial goals," said Debra McGinty-Poteet, senior vice president and managing director of Funds Management at Bank of America. "Deciding where and how much to invest requires more time and expertise than most people have. The Time Horizon Funds seek to make these investing decisions easy for investors," McGinty-Poteet added. Depending on their financial objectives and the time available to achieve them, investors can use Time Horizon Funds to invest for a myriad of life's future needs, such as sending a child through college, purchasing a larger home, having enough money to retire, starting or acquiring a business, or buying a mountain retreat. The Time Horizon Funds use an asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. strategy, but with a very important difference. The investment mix of the Time Horizon Funds, which is comprised primarily of equity and fixed-income securities Fixed-income securities Investments that have specific interest rates, such as bonds. , will be adjusted over time to reflect where each fund is in its "life cycle." During the early years, for example, the Time Horizon portfolios will be managed relatively aggressively in order to seek to grow the funds, but as the funds approach their time horizon target dates, the management objectives will be shifted gradually to more conservative investments to help preserve the capital in each fund. With most other mutual funds the investment objective remains the same over time. For example, if someone invested in a typical growth mutual fund for 20 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time philosophy for that entire period would be to grow the investment as aggressively in year 20 as in year one. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. McGinty-Poteet, Time Horizon Funds are designed to be a simple, convenient solution for investors. For the beginning investor, the Time Horizon Funds provide a fully structured portfolio at the outset, while for an experienced investor the funds can offer added portfolio diversification Portfolio diversification Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance of a single security, industry, (or country). . Following are highlights of the Time Horizon Funds: Investors have two ways to establish a Time Horizon Account: - They can open a Time Horizon account with only $500 and make subsequent purchases for as little $50, any time they want. - Or, investors may choose the Portfolio Builder Program. This reduces the amount needed to open a Time Horizon account to just $50. Investors can participate in this program by linking their Time Horizon account to a bank account, which enables them to start investing with just $50 and continue investing at least $50 per month automatically into their Time Horizon account. Securities in the three funds are selected primarily from these asset classes: - Stocks of small, mid-sized, and large companies that the Time Horizon Funds' portfolio managers believe have growth potential or are undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. . - Stocks and debt securities of international companies - Short-, intermediate-, and long-term term government and corporate bonds - Cash and cash equivalents Each Time Horizon Fund has a strategic mix of its investments allocated principally to two asset classes: equity securities and fixed income securities. - The strategic asset allocation Strategic Asset Allocation A portfolio strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation. Notes: At the inception of the portfolio, a "base policy mix" is established based on expected returns. mix for each Fund varies over time as the Fund moves closer to its target time horizon. Typically, the more distant a Fund's target time horizon, the greater the allocation to assets with higher growth potential and more risk, such as equity securities. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , the closer a Fund's target time horizon, the greater the emphasis on capital preservation assets such as short-term fixed income securities. Investors have a choice of purchasing either Class A shares or Class B shares in Time Horizon Funds. - Class A shares carry a 4.5% maximum front-end sales load Sales load See: Sales charge sales load See load. . In addition, total annual fund operating expenses Annual fund operating expenses For investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. are estimated to be 1 percent for Class A shares. - Class B shares carry a maximum 5.0% contingent deferred sales charge Contingent deferred sales charge (CDSC) The formal name for the load of a back-end load fund. contingent deferred sales charge A mutual fund redemption fee that is reduced or eliminated for specified holding periods. . Class B shares that are redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. within six years of purchase are subject to this charge. Over this interval, the rate applied to the contingent deferred sales charge declines until year 6, when the charge is no longer applied. In addition, total annual fund operating expenses are estimated to be 1.75 percent for Class B shares, which include a .75 percent 12b-1 distribution fee. Class B shares convert to A shares after eight years. "Time Horizon Funds are designed to make investing as anxiety-free as possible for consumers," said McGinty-Poteet. "These funds help alleviate much of the confusion typically encountered in investing for long-term financial goals. Consumers have been telling us they need a simpler, easier-to-understand approach to investing. We think the Time Horizon Funds do just that." For more Information about Time Horizon Funds, investors can call BA Investment Services, Inc., toll free at 1-800-205-8463, from 8 a.m. to 6 p.m. Pacific Standard Time, and receive a prospectus, an application form, and have their questions answered. Once they have established a Time Horizon account, investors can call 1-800-247-9728 toll-free, seven days a week, 24-hours a day and receive current price and performance data as well as account information. Time Horizon Facts September 27, 1995 Portfolios: The Time Horizon Funds consist of three portfolios. - Time Horizon Portfolio 1 is managed for investors with a goal near the year 2005 - Time Horizon Portfolio 2 is managed for investors with a goal around year 2015 - Time Horizon Portfolio 3 is managed for investors with a goal close to the year 2025. Investment Style/Objective: The Time Horizon Funds use an asset allocation strategy using equity and fixed income securities. The investment objective is to provide long-term investors with maximum total return over a stated investment time period while also increasingly emphasizing capital preservation as each Fund approaches its target time horizon. Types of Investments: Securities in the portfolios can include: - Stocks from large, mid-sized, and small companies believed to have growth potential - Stocks of international companies - Long-term government and corporate bonds - Intermediate-term government and corporate bonds - Short-term government and corporate bonds - Cash and cash equivalents Getting Started: There are several ways to invest in Time Horizon Funds. - Customers should talk to the BA Investment Services (BAIS BAIS Baird's Sparrow (bird species) BAIS Bell Atlantic Internet Solutions BAIS Battlefield Anti-Intrusion System BAIS Backward Alarm Indication Signal BAIS Battlefield Automation Interoperability System ) representative in their retail branch or they can call 1-800-205-8463 to talk to a BAIS Fund Specialist. - Customers can open an account with $500 and make subsequent purchases for as little as $50. - Investors can also open an account through the Portfolio Builder Program with just $50 by linking their Time Horizon account to a bank account and continue investing a minimum of $50 per month automatically. Pricing: - Class A shares carry a 4.5% maximum front-end sales load. In addition, total annual fund operating expenses are estimated to be 1 percent for Class A shares. - Class B shares carry a maximum 5.0% contingent deferred sales charge. Class B shares that are redeemed within six years of purchase are subject to this charge. Over this interval, the rate applied to the contingent deferred sales charge declines until year 6, when the charge is no longer applied. In addition, total annual fund operating expenses are estimated to be 1.75 percent for Class B shares, which include a .75 percent 12b-1 distribution fee. Class B shares convert to A shares after eight years. Toll-Free Information: - For more information about Time Horizon Funds, investors can call BA Investment Services, Inc. at 1-800-205-8463, from 8:00 a.m. to 6:00 p.m. PST PST Paroxysmal supraventricular tachycardia, see there , to receive a prospectus, an application form, and have their questions answered. - Once they have opened a Time Horizon account, investors can call 1-800-247-9728 toll free seven days a week, 24 hours a day and receive current price and performance information. Fund Manager: - Bank of America NT&SA. Fund Distributor: - Concord Financial Group, Inc. Broker-Dealer: - BA Investment Services, Inc. is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Bank of America NT&SA. BA Investment Services, Inc. is a registered broker-dealer and member of NYSE NYSE See: New York Stock Exchange and SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. . Time Horizon Funds are sponsored and distributed by Concord Financial Group, Inc., which is unaffiliated with Bank of America NT&SA, the funds' investment advisor. BA Investment Services, Inc. is a wholly owned subsidiary of Bank of America, a registered broker-dealer and a member of NYSE and SIPC. Shares of the Funds are NOT deposits of, or guaranteed or endorsed by, Bank of America or its affiliates. The Funds are not insured by the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). or any other governmental agency. An investment in mutual fund shares involves investment risks, including possible loss of principal. The Funds prospectus contains more information about the funds, including fees and expenses, and should be read carefully before investing. A systematic investment plan, such as the Portfolio Builder Program, cannot guarantee a profit or protect against a loss. CONTACT: Bank of America Jack Houseman, 415/622-5324 Shirley Norton, 415/622-4041 |
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