A Graphic Analysis
of
Selected Clients' Portfolio Performance | |
|---|
-
Introduction:
The clients selected are from those with whom I have experienced a most cordial professional relationship. (see relationship notes). The investment style of each has generally been one of Income with Growth with a strong preference for conservative securities. (see style notes). Performance has been measured from three perspectives; Capital Employed and RelativeValue, Cumulative Monthly Growth Rate and Annual Growth Rate measured monthly. (see perspective notes). The latter two measurements are compared with a 'Benchmark' which I have constructed in line with each client's portfolio asset allocation structure. (see Benchmark notes) ; also, see Comparison with similar style Mutual Funds. (compared to mutual funds)
(conclude with disclaimer notes)
-
The Clients and their Performance:
Client names have been changed from their real name for confidentiality. The personal description is real.
Click on each name to view their performance experience in result of our continuing consultation within my investment advisory service.
* Karen Victor Karen, now aged 80, has a modest pension from her many years as an office employee. She has saved diligently with equivalent assets in guaranteed interest investments. Her portfolio with me, from modest beginnings, has appreciated nicely by emphasis on a conservative growth and income composition with risk always maintained well within her comfort range.(click on client's name for performance experience.)
* Joyce Darrie Joyce Darrie is almost 80 and lives quietly but is very active as a health volunteer. With substantial cash assets beyond these portfolios Joyce has maintained an income growth stance withdrawing all income plus $18,000 a year from her RRIF.(click on client's name for performance experience.)
* Martha Cristy Martha died at 94 and was fully alert long after an accounting career. Her very conservative growth income portfolio was designed with a high yield equity component. Martha followed a practice of withdrawing all income leaving capital invested. While she had been my client for over 15 years, this analysis of 5.5 years is from statements she retained. ENTER:
Marjorie Elanne, a long time client with much the same portfolio performance and profile as Martha had.(click on client's name for performance experience.)
* Jerrod Tenisee, brought up in Canada, is living elsewhere with additional investments there. The portfolio was inherited form his parents and began as 100% Canada Savings Bonds. It has evolved into a diversified balanced portfolio and gradually increased its growth content to 40%, and then in October of 2000 to 60%.
(click on client's name for performance experience.)
* Edward and Marlene Golfs Mr. and Mrs Golfs are retired. Until August 2004, they maintained a diversified conservative portfolio averaging 35% equity, 40% income and 25% cash equivalents. Their Strategic Allocation was revised in August to a more conservative 10% equity, 35% risk free income and 45% conservative income portfolio structure. (click on client's name for performance experience.)
* Please note: The construct of the performance reports I have designed require gathering data from client statements over successive months. While most have been clients of mine for many years, unfortunately all have not kept their statements for that length of time. Nevertheless you should be able to garner a good sense of my performance accomplishment with the examples rendered.
top
-
Return results compared to mtual funds of similar style:
| Compared to 5 year performance of mutual funds with similar objectives as at April 30, 2007 |
Client's
Name | Client's
Rank | Client's
Return % | Closest
Fund % | Number
of Funds | Fund Classes for
suitable comparison |
| Karen Victor |
2 |
12.18 |
11.18 |
29 |
Tactical Balanced Funds |
| " |
10 |
12.18 |
12.17 |
184 |
Canadian Equity Balanced |
| " |
4 |
12.18 |
11.61 |
118 |
Global Neutral Balanced Funds |
| |
| Joyce Darrie |
2 |
11.18 |
11.18 |
29 |
Tactical Balanced Funds |
| " |
45 |
11.18 |
11.14 |
184 |
Canadian Equity Balanced |
| " |
5 |
11.18 |
10.97 |
118 |
Global Neutral Balanced Funds |
| |
| Martha Cristy |
3 |
10.58 |
10.35 |
29 |
Tactical Balanced Funds |
| " |
62 |
10.58 |
10.56 |
184 |
Canadian Equity Balanced |
| " |
8 |
10.58 |
10.41 |
118 |
Global Neutral Balanced Funds |
| |
| Average of all 3 |
2 |
11.31 |
11.18 |
29 |
Tactical Balanced Funds |
| " |
41 |
11.31 |
11.14 |
184 |
Canadian Equity Balanced |
| " |
5 |
11.31 |
11.97 |
118 |
Global Neutral Balanced Funds |
top
-
Relationship Notes:
My relationship with each client has been one of 'co-operative consultation' in regard to investment recommendations and the general direction of their portfolio structure. I have attempted to respond to their wishes as to the 'character' of the securities selected and the function of each within their portfolios. While each person has had rather limited investment knowledge and has shown considerable reliance on my advice, they all have participated in every decision after considering the reasoning involved in my investment advice with respect to security selection and market strategy. top
-
Style Notes:
In general I have attempted to stick to securities of companies that are familiar to my clients or which I know to be of very good quality, which my clients can easily recognize too. My experience has shown me that attempts at the odd speculation or 'getting on board' a popular stock has borne mixed, if not disappointing, results. I have much preferred to look for value in high grade issues that are currently depressed in price. For the most part I attempt to be well aware of 'market structure' and defer new purchases until a period of weakness has transpired. I always establish a target level or clear expectation of performance for each security purchased within the intermediate (six months) to long term (a year or more) time horizon. top
-
Performance Perspectives Notes
Capital Employed and Relative Value:Shows the cumulative capital invested at any point during the study reflecting deposits and withdrawals as they occur. This is compared with the actual value of the investments at the same time.
Cumulative Monthly Asset Growth Rate: The begining value of the client's account(s) divided by 10 determines the number of shares that would have a net asset value of $10 per share. If the account(s) increase or decrease in value the new value is divided by the number of shares to determine the new net asset value price per share. By comparing the new price to the prior month's price a percentage change is determined. By comparing the latest price to the first price the "Cumulative Monthly Asset Growth Rate" is established. Deposits and withdrawals are accounted for by a corresponding change in the number of shares based on the current month's closing price which assumes such transactions take place at the end of the current month after current month's price has been determined. Accordingly the net asset value or price per share is determined in a fashion corresponding to that of a mutual fund that is valued monthly.
Annual Growth Rate measured Monthly: Twelve month growth rates are calculated monthly. This is the monthly result of the average of these twelve month rates since inception. It is an attempt to show the annual rate of growth from the beginning at any point in time. The annual growth rate for the 'Benchmark' is illustrated as well for comparison.
top
-
Benchmark Notes:
Design of Portfolio Benchmark: The "Benchmark" is a composite of the Toronto Stock Exchange 300 Index to represent the growth element in a portfolio's asset allocation. The fixed income and cash components are represented by bond index yields converted to price on the basis of their stated maturity. The fixed income is apportioned between Government of Canada benchmark long term bond yield and price performance and the Average weighted Provincial bond yield and price performance derived from yields determined by Scotia Capital Inc. The cash yield is from Government of Canada marketable bonds, average yield for 1-3 year bonds. The source for the bond yield statistics is Bank of Canada Rates & Statistics web page. The Benchmark is achieved through a weighting of these indices to correspond to the individual client's own portfolio allocation. The comparisons illustrated are on a pre-tax basis. In fact each of the selected clients have held a goodly portion of their fixed income and growth sectors in tax advantaged investments. top
-
Disclaimer Notes:
Data provided by Ndex Systems Inc. Monthly performance calculations are in accordance with Ndex Systems' method excluding its intra month time adjustment to proportionately alter cash inflow/outflow amounts based on time of entry during the month, unless such amount in any month is deemed to be materially significant in relation to total account assets.
While the examples presented are actual results experienced by my clients, the results of their and other client's investment experience within my investment advisory service may vary in the future as past performance cannot guarantee future performance. You are also referred to the site disclaimer.
top
|
|
|
|
