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This issue is now available online along with an archive of past issues. To access past Condor Monthly and Condor Newsletters, just click on the link below or copy & paste the link into your favorite browser.

 

 

Please continue below to view the "From the Portfolio Manager" and "Financial Planning Corner" segments in this month's issue.

 

 

Yum! Brands, a multinational fast-food company, was a recent addition to Condor’s Large Cap Growth strategy portfolios.

 

 

Yum has been in the restaurant industry since 1997 and owns some of the most popular fast food brands in the world, such as Pizza Hut, Taco Bell, and KFC. Although the restaurant industry is a highly competitive market, the unique eating experience available at each of Yum’s restaurants gives it a favorable edge over its peers.

 

Yum’s recent success can be largely attributed to its footprint in the international market, in particular, China.  With personal incomes on the rise, as well as a favorable foreign currency exchange rate, Yum is in a great position to capitalize on the relatively new market in China.  It sees an opportunity to open over 20,000 additional restaurants in the country.  Additionally, the company plans to cater specifically to the Chinese people by developing a new fast food chain that specializes in indigenous foods.

 

 

Yum! Brands is planning to revamp its U.S.division after a fairly disappointing year domestically.  The company is attempting to emulate the successful strategy that led to a turnaround at one of its major competitors.  In doing so, it has begun to add more variety to its menus, which includes the addition of pasta dishes at Pizza Hut, as well as signature cold drinks at its KFC and Taco Bell chains.  Yum is also trying to appeal to the health conscious consumer by introducing healthier options, such as its new low-fat “Fresco” menu at Taco Bell and grilled chicken at KFC.

 

 

 

 

 

As the “Baby Boomer” generation begins to retire, many articles have been written about the challenges this generation faces in being able to maintain the same standard of living during retirement as they had during their working years.  However, it seems that there is also a gender difference within the group.  One study, “The Female Factor 2008: Why Women are at Greater Financial Risk in Retirement,” speculates that women face unique challenges that could jeopardize their financial security during retirement. Issues include the following:

 

• Women generally spend fewer years in the workforce than men, so they often have less retirement savings than men
• Women typically only earn $0.77 for every $1 earned by men
• Women generally receive less social security benefits than men due to the reduced income and earning years
• Women are about 30% less likely to receive income from an employer-sponsored retirement plan than men

 

 

The federal estate tax is always a hot political topic.  President Bush favored its elimination and coordinated with Congress on the Tax Relief Act of 2001, which raises the estate tax exemption amount to $3.5 million and reduces the top estate tax rate to 45% in stages through 2009.  The Act also calls for the eventual elimination of estate taxes in 2010. However, the Act expires in 2011, bringing back the $1 million exemption and 55% estate tax rate that was in effect prior to the Act. 

 

It is likely that Congress will address the situation before 2011, but won’t take action until after the next Presidential election.  All three candidates want to maintain the estate tax. Republican Senator John McCain supports a $5 million exemption indexed for inflation with a 15% tax rate, while both Democratic candidates, Sen. Hillary Clinton and Sen. Barack Obama, support continuing the $3.5 million exemption and 45% tax rate of the Act.