Navellier Tactical U.S. Equity Sector Plus

Transcription

1 Navellier Tactical U.S. Equity Sector Plus Results for the quarter ending June 30, NCD Tactical Series 1 U.S. Equity Sector Plus

2 Navellier Tactical U.S. Equity Sector Plus Model a hypothetical example Hypothetical example of systematic withdrawal (see chart on next page): Assumptions: $1,000,000 initial value Evaluation time period: 4/1/ /30/2015 6% initial withdrawal rate $60,000 initial annual rate 3% annual adjustment for inflation $85,546 final withdrawal rate Cumulative withdrawal $877,908 Evaluation of four investment portfolios U.S. Equity Sector Plus Model S & P 500 For Financial Consultant One-on-One Use Only. Source: Navellier. April 2003 to June Graphs are for discussion purposes only. Performance figures shown are for a hypothetical model. Please see important disclosures at the end of the presentation that discuss, among other important matters, the fees and other costs used to derive the net performance figures for the hypothetical model. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. Hypothetical back-tested performance has many inherent limitations. The hypothetical model should be considered as Model Portfolio results and are mere paper or Proforma performance results. There are material differences between Navellier Investment Product portfolios and the hypothetical model, research, and performance figures presented here. The hypothetical model and the research results (1) may contain ETFs that are illiquid and difficult to trade; (2) may contain ETF holdings materially different from actual funded Navellier Investment Product portfolios; and (3) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product. Please read important disclosures at the end of this presentation. Tactical Series 2 U.S. Equity Sector Plus

3 Navellier Tactical U.S. Equity Sector Plus Model a hypothetical example: Results: Ending portfolio value (after withdrawal): U.S. Equity Sector Plus Model (pure gross) = $10.48M U.S. Equity Sector Plus Model (net) = $6.97M S & P 500 = $1.54M Dollars ($) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 $6.97M Cumulative withdrawal: $877,908 3,000,000 Final withdrawal rate: U.S. Equity Sector Plus Model (pure gross) = 0.8% U.S. Equity Sector Plus Model (net) = 1.2% S & P 500 = 5.6% 2,000,000 1,000,000-3/03 4/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 6/15 $1.54M $878K U.S. Equity Sector Plus Model (Net) S & P 500 Cumulative Withdrawal For Financial Consultant One-on-One Use Only. Source: Navellier. April 2003 to June Graphs are for discussion purposes only. Performance figures shown are for a hypothetical model. Please see important disclosures at the end of the presentation that discuss, among other important matters, the fees and other costs used to derive the net performance figures for the hypothetical model. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. Hypothetical back-tested performance has many inherent limitations. The hypothetical model should be considered as Model Portfolio results and are mere paper or Proforma performance results. There are material differences between Navellier Investment Product portfolios and the hypothetical model, research, and performance figures presented here. The hypothetical model and the research results (1) may contain ETFs that are illiquid and difficult to trade; (2) may contain ETF holdings materially different from actual funded Navellier Investment Product portfolios; and (3) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product. Please read important disclosures at the end of this presentation. Tactical Series 3 U.S. Equity Sector Plus

4 Navellier Tactical U.S. Equity Sector Plus Model a hypothetical example: Setting future withdrawal rates back to 6% (from inflation adjusted rate of 7.8%) results in: Payouts U.S. Equity Sector Plus Model (pure gross): $629K per year U.S. Equity Sector Plus Model (net): $418K per year Dollars ($) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 $6.97M S & P 500: $92K per year 2,000,000 1,000,000 $1.54M $878K - 4/03 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 6/15 U.S. Equity Sector Plus Model (Net) S & P 500 Cumulative Withdrawal For Financial Consultant One-on-One Use Only. Source: Navellier. April 2003 to June Graphs are for discussion purposes only. Performance figures shown are for a hypothetical model. Please see important disclosures at the end of the presentation that discuss, among other important matters, the fees and other costs used to derive the net performance figures for the hypothetical model. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. Hypothetical back-tested performance has many inherent limitations. The hypothetical model should be considered as Model Portfolio results and are mere paper or Proforma performance results. There are material differences between Navellier Investment Product portfolios and the hypothetical model, research, and performance figures presented here. The hypothetical model and the research results (1) may contain ETFs that are illiquid and difficult to trade; (2) may contain ETF holdings materially different from actual funded Navellier Investment Product portfolios; and (3) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product. Please read important disclosures at the end of this presentation. Tactical Series 4 U.S. Equity Sector Plus

5 Navellier Tactical U.S. Equity Sector Plus Model U.S. Equity Sector Plus Model (Pure Gross) U.S. Equity Sector Plus Model (Net) S & P 500 Annualized Returns 2Q % 0.60% 0.28% Year-to-Date 3.56% 1.99% 1.23% 1 YR Return 11.30% 7.95% 7.42% 3 YR Return 18.96% 15.46% 17.31% 5 YR Return 23.28% 19.69% 17.34% 10 YR Return 24.49% 20.88% 7.89% Since (4/1/2003) 24.38% 20.78% 9.75% Calendar Year Returns % 11.14% 13.69% % 28.77% 32.39% % 11.30% 16.00% % 15.55% 2.11% % 36.43% 15.06% % 58.39% 26.46% % 18.03% % % 15.15% 5.49% % 12.89% 15.79% % 5.58% 4.91% For Financial Consultant One-on-One Use Only. Source: Navellier. April 2003 to June Graphs are for discussion purposes only. Performance figures shown are for a hypothetical model. Please see important disclosures at the end of the presentation that discuss, among other important matters, the fees and other costs used to derive the net performance figures for the hypothetical model. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. Hypothetical backtested performance has many inherent limitations. The hypothetical model should be considered as Model Portfolio results and are mere paper or Proforma performance results. There are material differences between Navellier Investment Product portfolios and the hypothetical model, research, and performance figures presented here. The hypothetical model and the research results (1) may contain ETFs that are illiquid and difficult to trade; (2) may contain ETF holdings materially different from actual funded Navellier Investment Product portfolios; and (3) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product. Please read important disclosures at the end of this presentation % 13.15% 10.88% Tactical Series 5 U.S. Equity Sector Plus

6 Navellier Tactical U.S. Equity Sector Plus Wrap Composite Navellier Tactical U.S. Equity Sector Plus Wrap Composite Performance S & P 500 Annualized Returns Pure Gross Net S & P 500 2Q % 0.75% 0.28% Year-to-Date 3.70% 2.52% 1.23% 1 YR Return 11.61% 9.23% 7.42% Since Inception (12/1/2013) 13.62% 11.30% 11.02% For Financial Consultant One-on-One Use Only. Source: Navellier. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. Please read important disclosures at the end of this presentation. Tactical Series 6 U.S. Equity Sector Plus

7 Important Disclosures Navellier Tactical U.S. Equity Sector Plus is a quantitatively driven investment strategy. The strategy is a tactical, defensive portfolio that invests in ten equity sector ETFs and takes defensive positions by investing in three bond ETFs staggered along the yield curve when conditions warrant. The strategy may invest in a cash equivalent, such as money market funds. There is no guarantee that the adviser will be successful in achieving returns similar to the Navellier Tactical U.S. Equity Sector Plus results presented herein, and in fact client returns may be significantly lower than the returns presented here after actual fees are taken into account, including management fees, brokerage or transaction costs, or other administrative or custodian fees a client may incur. As a matter of normal and important disclosures to you, as a potential investor, please consider the following. The returns presented reflect hypothetical performance an investor would have obtained had it invested in the manner shown and does not represent returns that an investor actually attained. Hypothetical back-tested performance has many inherent limitations. The Navellier Tactical U.S. Equity Sector Plus performance numbers should be considered as Model Portfolio results and are mere paper or proforma performance results. There are material differences between Navellier Tactical Investment Product portfolios and the research and performance figures presented here. The performance and the research results (1) may contain ETFs that are illiquid and difficult to trade; (2) may contain ETF holdings materially different from actual funded Navellier Tactical Investment Product portfolios; and (3) may not reflect prices obtained in an actual funded Navellier Tactical Investment Product portfolio. As a matter of important disclosure regarding the hypothetical results presented in the accompanying charts and graphs, the following factors must be considered when evaluating the performance figures presented: 1) Historical or illustrated results presented herein do not necessarily indicate future performance; Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. 2) The results presented were generated during a period of mixed (improving and deteriorating) economic conditions in the U.S. and positive and negative market performance. There can be no assurance that the favorable market conditions will occur again in the future. Navellier has no data regarding actual performance in different economic or market cycles or conditions. 3) The results portrayed reflect the reinvestment of dividends and other income. 4) LIMITATIONS INHERENT IN HYPOTHETICAL RESULTS: The performance results presented are from a Model, not an actually funded portfolio, and may not reflect the impact that material economic and market factors might have had on the adviser s decision-making if the adviser was actually managing clients money, and thus present returns which are greater than what a potential investor would have experienced for the time period. The results are presented for informational purposes only. No real money has been invested in this investment strategy. The investment strategy performance results should be considered mere paper or pro forma performance results. These results do not represent actual funded trades and may not reflect actual prices paid or received for actual funded trades. 5) The reported performances of Models presented in the accompanying charts and graphs do not reflect the performance results of Navellier s actually funded and traded Investment Products. 6) Model results presented herein were restated as of April 1, Testing of performance results for the Model over the 2004 to 2014 period indicated the methods used to calculate the results provided by third party consultants did not conform to accepted practice. After Navellier recalculated performance for the entire period, we found material differences. Calendar years where the difference was greater than 0.25% were deemed to have material differences. The following calendar years had material differences after returns were recalculated. 2006: 15.48% corrected to 16.30%, 2007: 23.11% corrected to 18.59%, 2008: 25.79% corrected to 21.53%, 2009: 65.60% corrected to 62.95%, 2011: 26.61% corrected to 19.03%. 7) In most cases, the adviser s clients investment results would be materially lower than the results portrayed in these materials. 8) The performance results may or may not relate, or only partially relate, to the type of advisory services currently offered by Navellier & Associates, Inc. Navellier does not calculate the statistical information included herein. This material has been prepared solely for informative purposes. Although information contained herein is based on sources Navellier believes to be reliable, Navellier does not guarantee its accuracy, and the information may be incomplete or condensed. Statistical analyses of the data presented are provided by Zephyr Associates, a company not related to Navellier. Information presented herein and the related Zephyr sourced information is provided on an as is basis. The user assumes the entire risk of any use made of this information. Investors should consider the report as only a single factor in making their investment decision. The report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. Zephyr sourced information is the exclusive property of Zephyr Associates. Without prior written permission of Zephyr Associates, this information may not be reproduced, disseminated, or used to create any financial products. The results portrayed include investment advisory fees paid to the adviser equal to 1.25% plus an estimated custodian/brokerage fee to account for transaction/brokerage costs equal to 1.75%, for total fees equal to 3.00%. The adviser believes these fees represent the highest fees a client may incur with a brokerage firm or other financial intermediary. However, it may be that some financial intermediaries charge fees greater than the adviser is aware of. The pure gross results portrayed do not include any investment advisory fees, administrative fees, or transaction expenses, or other expenses that a client would have paid or actually paid. The fees reflected in the net performance figures in this presentation may not include administrative fees, or transaction expenses, or other expenses that a client would have paid or actually paid. The fees may also vary depending on the account size and estimated trading costs will be greater for smaller accounts. The ETFs invested in the model portfolios have their own expenses that are included in the gross and net returns presented. The benchmark that we use to compare against the Navellier Tactical U.S. Equity Sector Plus, the S&P 500 Index, measures the performance of 500 stocks that are considered to be widely held by Standard & Poors, a division of The McGraw-Hill Companies, Inc., and comprises approximately three-quarters of the total capitalization of companies publicly traded in the United States. The S&P 500 Index is weighted by market value and its performance is thought to be representative of the stock market as a whole. It is reported that over 70% of all U.S. equity funds are tracked by the S&P 500. The index selects its companies based upon their market size, liquidity, and sector. Most of the companies in the index are mid cap or large corporations. This index is composed of 400 industrial, 20 transportation, 40 utility, and 40 financial companies. Many experts consider the S&P 500 one of the most important benchmarks available to judge overall U.S. market performance. Presentation of index data does not reflect a belief by Navellier that any stock index constitutes an investment alternative to any Navellier equity strategy presented in these materials, or is necessarily comparable to such strategies and an investor cannot invest directly in an index. Among the most important differences between the indexes and Navellier strategies are that the Navellier equity strategies may (1) incur material management fees, (2) concentrate investments in relatively few ETFs, industries, or sectors, (3) have significantly greater trading activity and related costs, and (4) be significantly more or less volatile than the indexes. All indexes are unmanaged and performance of the indices include reinvestment of dividends and interest income, unless otherwise noted, are not illustrative of any particular investment and an investment cannot be made in any index. Potential investors should consult with their financial adviser before investing in any Navellier Investment Product. Tactical Series 7 U.S. Equity Sector Plus

8 1. Compliance Statement Navellier & Associates, Inc. claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with GIPS standards. Navellier & Associates, Inc. has been independently verified for the periods January 1, 1995 through March 31, 2014 by Ashland Partners & Company LLP. A copy of the verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. 2. Definition of Firm - Navellier & Associates, Inc. is a registered investment adviser established in Navellier & Associates, Inc. manages a variety of equity assets for primarily U.S. and Canadian institutional and retail clients. The firm s list of composite descriptions as well as information regarding the firm s policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. 3. Composite Description - The Navellier Tactical U.S. Equity Sector Plus Wrap Composite includes all discretionary Navellier Tactical U.S. Equity Sector Plus equity accounts managed with similar objectives for a full month, including those accounts no longer with the firm. The strategy is a tactical, defensive portfolio that invests in ten equity sector ETFs and takes defensive positions by investing in three bond ETFs staggered along the yield curve when conditions warrant. The strategy may invest in a cash equivalent, such as money market funds. The strategy uses sine waves to measure the wave heights of the market. These sine waves produce signals that indicate when the portfolio should move in and out of stock or bond ETFs. Performance is calculated on a timeweighted and asset-weighted basis. Performance figures that are net of fees take into account advisory fees and any brokerage fees or commissions that have been deducted from the account. Pure gross-of-fees returns do not reflect the deduction of any trading costs, fees, or expenses, and are presented only as supplemental information. Performance results are total returns and include the reinvestment of all income, including dividends. The composite was created December 1, Valuations and returns are computed and stated in U.S. Dollars. 4. Management Fees - The management fee schedule for accounts is generally 40 to 100 basis points; however, some incentive fee, fixed fee, and fulcrum fee accounts may be included. Fees are negotiable, and not all accounts included in the composite are charged the same rate. Bundled fee accounts make up 100% of the composite for all periods shown. Wrap fee schedules are provided by independent wrap sponsors and are available upon request from the respective wrap sponsor. Wrap fees generally range from 100 to 200 basis points and include custody, trading expenses, and other expenses associated with the management of the account. The client is referred to the firm's Form ADV Part 2A for a full disclosure of the fee schedule. 5. Composite Dispersion - If applicable, the dispersion of annual returns is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year. 6. Benchmark - The primary benchmark for the composite is the S&P 500 Index. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock s weight in the index proportionate to its market value. The reported returns reflect a total return for each quarter inclusive of dividends. The asset mix of the composite may not be precisely comparable to the presented indices. Presentation of index data does not reflect a belief by the Firm that the S&P 500 Index, or any other index, constitutes an investment alternative to any investment strategy presented in these materials or is necessarily comparable to such strategies. 7. General Disclosure - The three-year annualized standard deviation is not presented because 36 months of history is not available. Actual results may differ from composite results depending upon the size of the account, custodian related costs, the inception date of the account and other factors. Past performance does not guarantee future results. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. The securities identified and described do not represent all of the securities purchased, sold, or recommended for client accounts. It should not be assumed that any securities recommendations made by Navellier in the future will be profitable or equal the performance of securities made in this report. A list of recommendations made by Navellier & Associates, Inc. for the preceding twelve months is available upon request.