PERFORMANCE DISCLOSURES FOR
THE RESOURCE CAPITAL LONG 60 MODEL PORTFOLIO
The Resource Capital Long 60 Model Portfolio has the following characteristics:
- The model portfolios are comprised of publicly traded equity stocks. The companies have a minimum market capitalization between $2 billion and $10 billion and are considered “mid- to large-cap” companies.
- The model portfolios reflect total return results.
- Concentration: All stocks in the portfolios are equally weighted within the portfolio and equally weighted across sectors.
- The investment objectives of the RCM Long 60 Model Portfolio are capital appreciation and value investing.
- The firm’s investment model is a static model that utilizes limitation filters to construct unique universes of equity securities which are segmented into specific sectors.
- Resource Capital has managed the model portfolio with the same investment philosophy it uses for client accounts.
- The Investment returns include dividends and capital gains. Returns are net of Resource Capital’s maximum advisory fee of 1% of assets under management billed quarterly (0.25% per quarter). Returns for periods of less than one year are actual returns and returns for periods greater than one year are annualized returns.
Performance Disclosure: The Resource Capital Long 60 Model Portfolio performance represents only the results of Resource Capital model portfolios. The model performance has inherent limitations. The returns shown are model results only and do not represent the results of actual trading of investor assets. Thus, the performance shown or discussed does not reflect the impact that material economic and market factors had or might have had on decision making if actual investor money had been managed. While model performance may have performed better than the benchmark for some or all of the periods shown, the performance during any other period may not have, and there is no assurance that model performance will perform better than the benchmark in the future. An investor's actual portfolio, composition and performance of the account may differ from those of the model portfolio due to differences in the timing and prices of trades, and the identity and weightings of securities holdings. Performance is calculated using a time-weighted rate of return using daily valuations and takes into account the reinvestment of dividends. Dividends are assumed to be paid at the ex-dividend date. Stocks are presumed added to, or deleted from, the model portfolio at the close of market on the day the change is made. The model performance reflects the deduction of a 1% advisory fee, but does not consider taxes and brokerage commissions, or other fees that investors may incur.
Benchmark Disclosure: The benchmarks for the Resource Capital Long 60 Model Portfolio are the Russell 1000 Total Return Index, the Russell 1000 Value Total Return Index and the S&P 500 Total Return Index. An index is an unmanaged, statistical composite and its return does not reflect payment of any brokerage commissions or fees an investor would pay to purchase the securities it represents. Such costs would lower performance. It is not possible to invest directly in an index. The benchmarks include a different number of securities and have different risk characteristics than the model portfolios. Past performance of the benchmark is no indication of future returns.
- The Russell 1000 Total Return Index measures the performance of the large-cap segment of the S. equity universe. A subset of the Russell 3000 Index, it includes approximately 1,000 of the largest stocks and represents approximately 90% of the U.S. market. The total return version reflects the effects of dividend reinvestment.
- The Russell 1000 Value Total Return Index measures the performance of the large-cap value segment of the S. equity universe, and includes those Russell 1000 companies with lower price-to-book ratios and lower expected and historical growth rates. The total return version reflects the effects of dividend reinvestment.
- The S&P 500 Total Return Index is an index of 500 stocks seen as a leading indicator or S. equities and a reflection of the performance of the large-cap universe. It is a market value weighted index and one of the common benchmarks for the U.S. stock market. The total return version reflects the effects of dividend reinvestment.
THE RISK OF LOSS: When making investments in equity securities, there is a risk that a portion or 100% of your investment funds could be loss. The RESOURCE CAPITAL LONG 60 MODEL PORTFOLIO is an investment in equity securities.