Schultz Financial Mgmt Corp
Risk-Controlled Portfolios for Serious Investors
|
|
Schultz Financial Mgmt Corp
Risk-Controlled Portfolios for Serious Investors |
 |
  |
 |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Model Portfolios
Our
risk-controlled model investment portfolios have been designed to meet the
varying objectives of investors who want to earn attractive returns and
reduce portfolio risk during turbulent markets. Our model portfolios illustrate how we may diversify investor portfolios among multiple types of investment categories (i.e., asset classes). Within a particular asset class, we may use multiple investment styles in order to further reduce portfolio risk.
We use "core" and "trend" to distinguish between two distinctly different investment styles. Our core investment styles are managed in a traditional fashion and typically would stay mostly invested throughout a full business cycle. Our trend investment styles apply trend following techniques in order to reduce market exposure during down trends.
These model portfolio are for illustrative purposes only. Actual client portfolios are designed with consideration also given to client expressed investment preferences or biases, income requirements, outside held investments (i.e., employer retirement plans, annuities, real estate, etc.), tax ramifications, and other factors.
Estimated
average annual return: 7.0%
Potential drawdown of 6% Downside
risk similar to 25/50/25 Blended Index
Estimated
average annual return: 7.5%
Potential drawdown of 9% Downside
risk similar to 30/50/20 Blended Index
Estimated
average annual return: 8.0%
Potential drawdown of 12% Downside
risk similar to 35/50/15 Blended Index
Estimated
average annual return: 8.5%
Potential drawdown of
15% Downside
risk similar to 40/50/10 Blended Index
Estimated
average annual returns (net of fees) for the Risk Controlled Model Portfolios above are
provided for long term financial planning purposes. These estimates
are based on current market and economic conditions and are subject to
change. Estimated
risk
levels are considered to be potential portfolio drawdowns (i.e., decline
in portfolio value)
that may occur in a bear market which usually occurs every 5-10 years. These estimates are based on a
40% decline in the S&P 500 over a 24 month period.
However, during extreme bear market conditions or catastrophic events,
portfolio declines could be considerably larger. It is estimated that each model portfolio has comparable downside risk (during a bear market) to a blended index of stocks, bonds, and cash equivalents in the rations given. For example a blended index of "30/50/20" indicate 30% S&P 500 stocks, 50% LB bonds, 20% 3 month T-bills. The blended indices used are the S&P 500 Index, the LB Aggregate Bond Index, and the Citigroup 3 Month T-Bill index. |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
   |
|
© Schultz Financial Management 2002
