WASHINGTON - Republican presidential candidate Robert J. Dole and his wife, Elizabeth, have a well-balanced investment portfolio worth $3 million to $7.4 million, investment professionals say.
Four money managers examined the portfolio at the request of Pensions & Investments. Some said the only thing that might be missing is exposure to international investments.
Only Ms. Dole has any international holdings, and hers are minor investments in international equity funds. But for a man who winces at riding in foreign-made cars, Mr. Dole's heavy leaning toward domestic investments seems appropriate.
"The only monstrous glaring omission is international," said Theodore Aronson, managing partner at Aronson + Partners, Philadelphia.
But just as Mr. Dole is a careful political strategist, most agreed he would not leave himself open to attack even in his personal investments.
"I can't imagine that he hasn't thought through .*.*. what it would look like if (he) had a substantial amount of assets overseas," said Mike Vogelzang, senior vice president at Freedom Capital Management Corp., Boston.
Still, the Doles get international exposure because the companies in which they have invested do business outside the United States, noted Tony Spare, chief investment officer at Spare, Kaplan, Bischel & Associates, San Francisco.
"About one-third of the stock revenues (among the companies the Doles own stock in) are generated outside the U.S., but they are U.S.-headquartered companies," Mr. Spare said. "I think they've gone about the international stocks just as you'd expect them to."
P&I pulled the Doles' personal investment portfolio from public records at the Federal Election Commission, Washington; the five managers commented on those records.
The records only estimate the Dole's net worth, at between $2.8 million and $7.4 million. The records do split the holdings. While he is worth between $500,000 to $1.5 million, she has holdings between $2.3 million and $5.9 million. About half is in individual stocks, bonds and real estate; the other half is in mutual funds, annuities, insurance policies, and holdings in IRAs and Keogh accounts.
Experts said there is no real focus to the portfolio, and it is not dominated by any one security. They also said the holdings are appropriate for the Doles' ages. Mr. Dole is 72 and Ms. Dole is 59.
"Almost all of the bases are covered," Mr. Spare said. He noted the Doles' goal probably was to achieve a well-balanced portfolio that was "unattackable and unassailable."
Mr. Aronson estimates the asset allocation is 36.5% stocks, 23% bonds, 12% short-term investments and 28.5% real estate.
"Its a very, very fine distribution," Mr. Aronson said. "It's not widely aggressive and it's not widely conservative. .*.*. There are a lot of individual stocks, a lot of funds."
Mr. Dole's holdings include a Smith Barney government securities fund and a Smith Barney growth and income fund, worth between $100,001 and $250,000 each. Dole also lists certificates of deposit at Sunflower Bank, Russell, Kan.; Riggs National Bank, Washington; and Bank of America Illinois, Chicago, along with two mutual funds - Nations Fund Value Fund and Smith Barney appreciation fund, class A - all worth between $50,000 and $100,000 each.
Ms. Dole's holdings worth between $250,000 and $500,000 each include a Manulife deferred annuity; NationsBank Trust Co. long-term equity fund; and 120 acres of unimproved land in Johnson County, Kan. Her holdings worth between $100,001 and $250,000 are a Sedgwick Co., Kan., 6% municipal bond, and a NationsBank Keogh plan liquidity fund.
Just about all of the Dole's stock holdings are in large-capitalization, growth companies including AT&T Co., General Electric Co. and PepsiCo Inc.
Her portfolio is much more extensive: while Mr. Dole mostly holds less than $1,000 in each of his blue-chip stocks, Ms. Dole holds between $15,000 to $50,000 in 21 better-known companies.
"It's the hall of fame for American corporations," Mr. Vogelzang said, referring to both portfolios.
Mr. Vogelzang said NationsBank is most likely the investment adviser to the portfolio because Ms. Dole's individual investments in the blue-chip companies mirror Mr. Dole's investments in his NationsBank IRA as well as those in Ms. Dole's Keogh account, but on a much larger scale.
He added many of the blue-chip investments probably came from the investment adviser and not directed investments by the Doles.
The Doles probably have a brokerage account with Smith Barney, because the records show nine separate fund investments with the firm.
"(Mr. Dole) probably had nothing to do with most of the purchases in the portfolio," Mr. Vogelzang said.
The investment experts said they are not concerned to see investments in companies that also have business with Capitol Hill. Mr. Dole was a big player in the passage of the Telecommunications Act of 1996. But the pros said it is highly unlikely Mr. Dole would risk his political career for gains in his personal investments in telecommunication companies such as AT&T, GTE Corp., and Motorola Inc.
Ron Stribley, vice president and senior portfolio manager at The Glenmede Trust Co., Philadelphia, said he'd be more suspicious if there were large defense companies like Lockheed Martin or Rockwell International Corp. in the Dole investment portfolio. The investments in the Dole portfolio are very typical of high-net-worth individuals, he said.
Looking at the Doles' bond investments, analysts said the Doles were probably thinking less about Mr. Dole's push for a flatter tax system than at what they would make investing in tax-free municipal bonds.
"If he is a cynic, maybe he doesn't think (the flat tax) is going to happen," Mr. Aronson said. "On the statesman side, maybe he doesn't worry about his own affairs - he worries about the affairs of the state."