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PERFORMANCE
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Click on Portfolio Type to View Details
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| STOCKS TAXABLE |
STOCKS NON-TAXABLE |
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| ASSET ALLOCATION |
HIGH DIVIDEND |
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WHY PERFORMANCE MATTERS
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Performance is the most important factor in choosing a money manager. One would not buy a mutual fund with a poor performance history.
Long term performance of at least five years should be compared. The measurement period should cover both up and down markets--good economies and bad
economies. The longer the measurement period the more reliable the past record is at demonstrating the money manager’s investment skill.
One can get lucky or unlucky over 1-2 years. Luck is eliminated over longer periods. One can be in the wrong sectors or right sectors for 1-2 years
which will enhance or detract from their performance.
What is a good long term record? If the money manager has beaten the index by at least 3 percentage points per year, after deducting their fees they
have done an excellent job. For a $100,000 account, that would add $80,082 over ten years versus the index.
Very few mutual funds and money managers do better than their benchmarks over a long period. If they did, they would be anxious to tell you about their
great record.
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DISCLOSURES
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1. Performance is shown after deduction of my management fees paid by the client or net of my fees. Performance shown includes payment of dividends
and income. Past performance is no guarantee of future results, and investing in securities may result in a loss of principal.
2. Accounts that begin the calendar year under the minimum amount required for that account style are not included in the aggregate composite return
until the first year in which they reach the minimum.
3. Only those accounts that were funded for the full calendar year may be counted for each year’s return calculations.
4. The returns were calculated on an asset weighted basis from 2001 to 2006. Subsequent years were calculated using average returns.
5. If an account is initially funded six months or sooner from the start of the calendar year it will not be included in the return calculations for
the upcoming year.
6. Accounts with an inflow or outflow during the calendar year were not included in the calculations for that year. Prior to 2007 accounts with an outflow or inflow of
more than 25% were not included in the calculations.
7. The volatility of the benchmark S & P 500 Index may be
materially different than the Stocks Taxable, Stocks NonTaxable or High
Dividend portfolios. The volatility of the benchmark MSCI World Index may
be materially different than the Asset Allocation portfolio.
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