Performance Disclosure - GROWTH OF $10,000 GRAPH
The Model Portfolio Simulated Purchase
- The above graph represents model portfolios and therefore the portfolios were not actually purchased.
- The equity securities for the Model Portfolios were selected on December 31, 2009, December 31, 2010, December 31, 2011, December 31, 2012, December 31, 2013, December 31, 2014 and December 31, 2015 respectively.
- The Model Portfolio equity securities were selected and recorded at the close price of the last trading day of the current year or at the open price of the first trading day of the next year.
- The Model Portfolios were not actually purchased. The December 31 close prices of a respective year or the January 1 opening prices of a respective year were utilized as the Model Portfolios stock prices. The prices were utilized in order to make simulated purchases of the Model Portfolio. The simulated purchase of the Model Portfolio was made by taking the total dollar amount of the investment and making equal dollar amount investments in each of the Model Portfolio’s equity security regardless of the security’s price. Therefore there was an equal weighting across all stocks and sectors that comprised the Model Portfolios.
- All of the Model Portfolio equity securities were held in the portfolio for one year.
- No equity securities were added or removed from the Model Portfolio during the one year holding period.
- At the end of the year, the Model Portfolios were rebalanced on December 31 and a new portfolio was established for the next year.
- Modeled results may differ materially from actual results as they do not represent actual trading and may not fully account for commissions and other expenses a client would have paid. Modeled results may not reflect the impact that material economic and market factors might have had on the adviser’s decision making if the adviser were actually managing the client’s money.
- The performance results shown include the reinvestment of dividends and other earnings. The U.S. Dollar is the currency used to express performance. Additional information regarding the calculation methodology is available upon request.
- Actual performance would be reduced by investment advisory fees and other expenses that may be incurred in the management of the client’s portfolio. The collection of fees produces a compounding effect on the total rate of return net of management fees. As an example, the effect of investment management fees on the total value of a client’s portfolio assuming (a) quarterly fee assessment, (b) $1,000,000 investment, (c) portfolio return of 8% a year, and (d) 1.00% annual investment advisory fee would be $10,416 in the first year, and cumulative effects of $59,816 over five years and $143,430 over ten years. Actual investment advisory fees incurred by clients may vary.
- It should not be assumed that all clients follow the Model. Actual client investments are made with the client’s investment objective, risk tolerance and income needs in mind.