Shoreline Wealth and Investment Mangement  


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Investment Performance


Investment Performance

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.

Portfolio 15 Year* 10 Year* 5 Year* 1 Year* -10/31/17 Annual* Value*
Conservative* 4% 2% 2% 3% 9% 5.37% $2,010,930
Moderate* 7% 6% 9% 5% 15% 9.89% $2,861,940
Aggressive* 8% 8% 5% 9% 13% 15.74% $3,962,710
S&P 500 6% 6% 13% 10% 15% 5.52% $2,095,020
NASDAQ 10% 11% 16% 8% 25% 10.43% $3,068,230
*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 (2016), 5 year (2012-2016), 10 year (2007-2016), 15 year (2002-2016)- 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 2017 to calculate annual returns 1999-2017 is 43 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.
Questions EVERY Diversified Investment Advisors should ask you...
SWIMLLC vs. Warren Buffet... who performs better?

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.

We 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 of Internet Explorer) is updated regularly so check in from time-to-time to see new articles and updates. 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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  Shoreline Wealth and Investment Management Phone: 800.329.4820 - Fax: 805.456.3806 - E-Mail: cbloom@cfiemail.com