Below is a table which compares the investment performance of Shoreline Wealth & Investment Management (SWIM) using commingled accounts in our three tactical asset allocation
models with that of the S&P 500 and NASDAQ Indexes since 1998. As you can tell, SWIM has outperformed both averages on an average per year rate of return. The S&P 500 is
the index SWIM attempts to outperform. While SWIM has beaten the average per year rate of return on the NASDAQ, this index is much too volatile (risky) and not one SWIM attempts
to consistently beat.
Investment Performance Assumptions
The table below shows the per year rate of returns for the SWIM, S&P 500 and NASDAQ Indexes in the column under each year listed. The average annual return column is highlighted
in yellow for comparison purposes. The average annual return column assumes all money was invested for the entire time period listed. The value column assumes the value of a $1,000,000
investment made on 31 December 1998 and that no withdrawals were taken during the entire time period listed.
|*for illustration purposes only, past performance is not a guarantee of future returns
|*value based on $1,000,000 invested 1 January 1999 rounded to the nearest $10
|*performance (rounded to nearest percentage) based upon data from Morningstar®
|*portfolios and returns are calculated by rebalancing the various models and their respective asset allocation weighting annually and reflect pre-tax, after-fee results
|*1 year (2019), 5 year (2015-2019), 10 year (2010-2019), 20 year (2000-2019)- returns are for calendar years indicated
|*actual investments can only be disclosed when client is provided with current prospectus' and signs that such prospectus' have been received with an original illustration
| - number of weeks used in 2020 to calculate annual returns 1999-2020 is 31 weeks
Commingled Managed Investment Portfolios
Investment accounts with a liquid net worth less than $1,000,000 can be still be professionally managed for individuals. Commingled accounts are those in which individuals' money
is commingled using investments including mutual funds or variable annuities. This option provides individuals with an opportunity to have their assets professionally managed and
broadly diversified at a reasonable cost. Diversified investment advisors fit perfectly into this management strategy. Additionally, each investor in a commingled account receives
a separate statement monthly or quarterly, confirmations of each trade, direct access to the portfolio and potential tax savings from employing buy and sell strategies to minimize
long and short-term tax consequences.
Three Portfolio Choices
Select from our Conservative, Moderate and Aggressive strategic asset allocation portfolios. Our clients have different investment goals, experience, time horizons and risk tolerance
levels. In fact, a single client may have different goals for different accounts including those for personal investments, retirement income, educational or philanthropic funding
and so on. Our diversified investment advisors work with our clients to assist in selecting the appropriate portfolio(s) which offer flexibility, and also to select different portfolios
as investor needs or goals change.
have different weightings in different markets and market
sectors for each of our three portfolios which we offer
and re-balance these portfolios regularly. It is interesting
to note that we're not alone in adopting this strategy
although our specific mix in each of the portfolios
is unique. A recent study by mutual fund manager T. Rowe Price showed that re-balancing portfolios annually provided 20% less risk (i.e. volatility) and almost identical returns to selecting an asset allocation and never re-balancing. Harvard, the richest school in the U.S. is
among a very few academic institutions whose endowments
have generated stunning returns. They have done so by
selecting asset allocation models which they do not
alter regardless of market direction. A recent New York
Times article quoted the chief strategist of Harvard's
endowment fund stating that "We have no idea which way
asset classes are going to move [and] I don't think
we are smart enough to be right. I am a terrible dinner
party partner. Someone will say: So what do you think
of the stock market, and I will say, 'I don't have a
clue.'" We couldn't have said it better ourselves. And
yet, our track record using strategic asset allocation
and rebalancing the portfolio allocations regularly
has produced very respectable results, presented farther
down the page for your review. Immediately below is
a graphic which we find helpful in assisting clients
select the appropriate model portfolio.
INVESTMENT MANAGEMENT RATES & PORTFOLIO MINIMUMS AS OF 1 JANUARY 2013
Our investment management fee is 1.5% and our minimum account is
$250,000. Our service and performance continue to be superior to the
market and our peers.
For more information:
If you'd like more information about how diversified
investment advisors can help you achieve your financial
objectives through personalized wealth or retirement
and risk management strategies, please contact us.
We welcome the opportunity to discuss your unique needs
and how we may best meet them.
For more information:
If you'd like more information about how diversified investment advisors can help you achieve your financial objectives through personalized wealth or retirement and risk management strategies, please contact us. We welcome the opportunity to discuss your unique needs and how we may best meet them.
This page (formatted for versions 10.0 and higher
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You can click on any underlined words on each
page to see a specific wealth management topic in the
left margin of each page.
Charles M. Bloom, Registered Principal offers securities
and advisory services through Centaurus Financial, Inc. - Member FINRA and SIPC - 775 Avenida Pequena, CA, 93111 (mailing address: 3905 State Street Suite 7173, Santa Barbara, CA, 93105) - CA Life Insurance License No. 0A52786 - Centaurus Financial, Inc. and Shoreline Wealth & Investment Management are not affiliated companies.
The information contained in this web site is neither an offer nor solicitation of any security or service.
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