Bay Capital Programs
 Bay Capital, Registered Investment Advisor is an investment firm specializing in active asset allocation for clients on a discretionary basis.
The objective of active asset allocation is to preserve capital during periods of market declines and to participate in the appreciation of an investment portfolio during market advances. The defensive emphasis of active asset allocation is to avoid or minimize losses and to preserve capital when markets are trending down.
Active asset allocation involves the execution of exchanges, generally within a mutual fund family or families. These exchanges include moving between a growth (stock) fund and a defensive money market/ short-term bond fund or a market-neutral position. A market-neutral position achieves the same defensive goal as a money market or short-term bond fund.
Additionally, advisor may use longer-term government and corporate bond funds that represent asset classes other than stocks and bond funds, index funds including inverse-index funds that move opposite the market, and other styles of mutual funds that represent asset classes other than stocks and bonds that can enhance overall performance and diversification.
Programs offered by Bay Capital are listed below. The "numbered" programs utilize additional short-term market signals while the "allocation" programs utilize long-term market signals.
Bay Capital I and Conservative Allocation Programs:
Investment Objective- Growth and income
Investment Vehicles- The Bay Capital I and Conservative Allocation programs primarily employ domestic stock mutual funds and funds representing market sectors or different asset classes including domestic and global funds, real assets and real estate. The funds employed are no-load or front-end load funds with the load waived. Funds may or may not be purchased through broker/dealer Calton & Associates, Inc. Member FINRA/SIPC.
Minimum Investment- $25,000. Upon consultation with the client, the advisor may modify the minimum account size.
*In cases where the client elects to purchase "C" class funds that pay Bay Capital associates a 1% annual commission, the annual management fee may be waived. "C" class funds may impose a 1%, 1-year contingent deferred sales charge.
Bay Capital I and Conservative Allocation Programs Fee Schedule:
| Account Valuation |
Annual Fee |
Quarterly Equivalent |
| First $1,000,000 |
1.0% |
0.25% |
| $1,000,000-$2,000,000 |
0.8% |
0.20% |
| $2,000,000-$3,000,0000 |
0.6% |
0.15% |
| Over $3,000,000 |
Negotiable |
Negotiable |
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Bay Capital II and Moderately Conservative Allocation Programs:
Investment Objective- Conservative growth
Investment Vehicles- Limited primarily to diversified stock mutual funds, sector mutual funds, and currencies that are exchanged with money market funds within a mutual fund family, variable annuity, and variable universal life insurance. Funds may or may not be purchased through broker/dealer Calton & Associates, Inc. Member FINRA/SIPC.
Minimum Investment- $50,000. Upon consultation with the client, the advisor may modify the minimum account size.
*In cases where the client elects to purchase "C" class funds that pay Bay Capital associates a 1% annual commission, the annual management fee may be waived. "C" class funds may impose a 1%, 1-year contingent deferred sales charge.
Bay Capital II and Moderately Conservative Allocation Programs Fee Schedule:
| Account Valuation |
Annual Fee |
Quarterly Equivalent |
| First $500,000 |
1.5% |
0.375% |
| $500,000-$1,000,000 |
1.2%
|
0.30% |
| $1,000,000-$2,000,000 |
0.96% |
0.24% |
| Over $2,000,000 |
Negotiable |
Negotiable |
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Bay Capital III and Moderate Allocation Programs:
Investment Objective- Growth
Investment Vehicles- Diversified stock mutual funds, funds representing market sectors or different asset classes may also be added to construct a "portfolio of portfolios." At times, funds are exchanged to money market funds or an approximate market-neutral position is assumed using mutual funds that move in the opposite direction of the market. The investment vehicles employed are no-load funds, level-load funds (with no entry or exit fees) or front-end load funds with the load waived. Funds may or may not be purchased through broker/dealer Calton & Associates, Inc. Member FINRA/SIPC.
Minimum Investment- $100,000. Upon consultation with the client, the advisor may modify the minimum account size.
*Independent third party managers may be added to the Moderate Allocation program that charge higher or lower fees which may result in a higher or lower annual management fee.
Bay Capital III and Moderate Allocation Fee Schedule
| Account Valuation |
Annual Fee |
Quarterly Equivalent |
| First $1,000,000 |
2.0% |
0.50% |
| $1,000,000-$2,000,000 |
1.5% |
0.375% |
| $2,000,000-$3,000,000 |
1.0% |
0.25% |
| Over $3,000,000 |
Negotiable |
Negotiable |
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Bay Capital IV and Moderately Aggressive Allocation Programs:
Investment Objective- Moderately aggressive growth
Investment Vehicles- Diversified and non-diversified mutual funds representing multiple asset classes including domestic and global equity and debt, real assets, currencies, and real estate which tend to move independently of one another, i.e. there is low correlation between asset classes. Where available, index funds are used to assume both long and short positions. The objective is to profit from both upward and downward trends in stocks, bonds, and other asset classes. Funds may or may not be purchased through broker/dealer Calton & Associates, Inc. Member FINRA/SIPC.
Minimum Investment- $100,000. Upon consultation with the client, the advisor may modify the minimum account size.
*Independent third party managers may be added to the Moderately Aggressive Allocation program that charge higher or lower fees which may result in a higher or lower annual management fee. Additionally, qualified investors may elect an incentive fee as described in the Bay Capital V and Aggressive Allocation that follows.
Bay Capital IV and Moderately Aggressive Allocation Programs Fee Schedule
| Account Valuation |
Annual Fee |
Quarterly Equivalent |
| First $1,000,000 |
2.5% |
0.625% |
| $1,000,000-$2,000,000 |
2.0% |
0.50% |
| $2,000,000-$3,000,000 |
1.5% |
0.375% |
| Over $3,000,000 |
Negotiable |
Negotiable |
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Bay Capital Global Growth:
Investment Objective- Aggressive growth. This program is an effort to maximize return.
Investment Vehicles- Bay Capital Global Growth searches the world for investment opportunities in equity and debt markets. The performance of Bay Capital Global Growth is non-directional, that is, its performance does not depend on the direction of the market. Funds may or may not be purchased through broker/dealer Calton & Associates, Inc. Member FINRA/SIPC.
Incentive Fee- Qualified investors may elect an incentive fee. The annual incentive fee is 18.75% of the increase in quarterly account value over the highest previous quarterly account value. This is a performance fee, which means that if no increase is achieved, no fee is due.
Minimum Investment- $100,000. Upon consultation with the client, the advisor may modify the minimum account size.
Bay Capital Global Growth Programs Fee Schedule
| Account Valuation |
Annual Fee |
Quarterly Equivalent |
| $100,000 - $999,999 |
2.0% |
0.50% |
| $1,000,000 + |
Incentive Fee (See above) |
N/A |
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