LifeSpan Target 2028 Born

Transcription

1 LifeSpan Target 2028 Born Emerging Mkts.-6% New World Fund 6% World Small Co.-3% Small Cap World 3% World-4% New Perspective 4% Mid Cap Growth-4% PRIMECAP Odyssey Aggressive Growth 4% International-5% Small Cap-3% Europacific Growth 5% Prudential Jennison Small Co. 3% Growth-5% Amcap 5% Principal-11% Lincoln National Stable 11% Growth & Inc. -18% Artisan Global Opportunities 5% American Mutual 8% Washington Mutual 5% Balanced-10% Income Fund of America 10% Income-31% PIMCO Total Return 8% Loomis Sayles Bond 6% Templeton Global Bond 6% PIMCO Real Return 6% Invesco Real Estate 5%

2 Portfolio Analysis Prepared for Oct 1, 2018 Financial Management Network Acero Mission Viejo, CA

3 Holdings Weight (%) Stable 11 American Funds Income Fund of Amer R4 RIDEX 10 PIMCO Total Return Instl PTTRX 8 American Funds American Mutual R4 RMFEX 8 Loomis Sayles Bond Retail LSBRX 6 PIMCO Real Return Instl PRRIX 6 American Funds New World R4 RNWEX 6 Templeton Global Bond A TPINX 6 Artisan Global Opportunities Inv ARTRX 5 Invesco Real Estate R5 IARIX 5 American Funds AMCAP R4 RAFEX 5 American Funds Europacific Growth R4 REREX 5 American Funds Washington Mutual R4 RWMEX 5 PRIMECAP Odyssey Aggressive Growth POAGX 4 American Funds New Perspective R4 RNPEX 4 American Funds SMALLCAP World R4 RSLEX 3 PGIM Jennison Small Company Z PSCZX 3 Cash - - As of Sep 28, Cash comprises money market accounts and funds. Please read back page for important information about this report Page 1

4 Allocation Weight (%) US stocks large cap 26.4 US stocks mid cap 7.3 US stocks small cap 2.8 Non US stocks 18.3 Unclassified stocks 0.6 US bonds investment grade 6.8 US bonds high yield 1.7 US bonds inflation protected 6.1 Non US bonds 6.5 Unclassified bonds 9.6 Alternative - Cash & equivalents 12.4 Other Stocks 55.3 Bonds 30.7 Cash & equivalents 12.4 Other Cash & equivalents comprises money market holdings, and fixed-income securities with maturity of less than 90 days. Alternative comprises commodity, precious metals and alternative funds. Please read back page for important information about this report Page 2

5 Stocks Analysis Sectors Weight (%) Cyclical Basic Materials 5.3 Consumer Cyclical 11.7 Financial Services 13.6 Real Estate 9.7 Sensitive Communication Services 2.9 Energy 6.8 Industrials 10.4 Technology 17.6 Defensive Consumer Defensive 6.9 Healthcare 13 Utilities 2.2 Not classified Not classified Percentage of portfolio analyzed 55.3 Cyclical 40.3 Sensitive 37.7 Defensive 22.1 Not classified Values are based on the percentage of portfolio analyzed. Please read back page for important information about this report Page 3

6 Stocks Analysis Style Average style Percentage of portfolio analyzed 55.3 Values are based on the percentage of portfolio analyzed. Regions North America 69.4 Latin America 1.7 Europe Developed 13.8 Europe Emerging 0.3 Africa/Middle east 0.8 Japan 3.3 Australasia 0.5 Asia Developed 3.6 Asia Emerging 6.7 Unclassified Percentage of portfolio analyzed 55.3 Values are based on the percentage of portfolio analyzed. Please read back page for important information about this report Page 4

7 Bonds Analysis Style Bonds allocation (%) 30.7 Average credit quality BB % of bonds rated 36 Average effective duration 4.02 % of bonds measured 98 Please read back page for important information about this report Page 5

8 Performance 1 year 3 years 5 years 10 years Annualized Total Return 6.9% 10.2% 7% 8.2% Risk (standard deviation) 4.8% 5.7% 5.9% 10% Alpha Beta -1.8% -0.1% -0.8% 0.4% Sharpe ratio Maximum drawdown -5.7% -9.4% -11.8% -27.5% Distribution rate: : 1.65% Model assumptions: Dividends: : reinvested Simulation: Yearly rebalance The benchmark used to calculate alpha, beta is: S&P 500 Index TR Please read back page for important information about this report Page 6

9 Performance Cumulative returns 10y Periodic returns 10y Please read back page for important information about this report Page 7

10 Stress Test Past performance for historical scenarios Asian crisis (1997): Currency crisis originated in Thailand and spread to Asian countries. Global markets experienced drops on fear of worldwide contagion. Russia/LTCM (1998): After Russia defaulted on its bonds, Long Term Capital Management's collapse threatened to cause a chain reaction of losses. Tech bubble ( ): Deflating of the dot-com bubble caused a prolonged decrease in equity prices. WTC attack (2001): Terrorist attack disrupted trading in the US markets and triggered a sell-off. Subprime crisis ( ): A rise in subprime mortgage delinquencies led to a financial crisis and recession. Please read back page for important information about this report Page 8

11 Funds Expense Average net expense ratio: 0.78%; Portfolio net expense ratio: 0.7% Symbol Net expense ratio Weight Net annual Fund in portfolio expense (*) American Funds Income Fund of Amer R4 RIDEX 0.64% 10% 64 American Funds New World R4 RNWEX 0.98% 6% 59 Artisan Global Opportunities Inv ARTRX 1.15% 5% 58 Loomis Sayles Bond Retail LSBRX 0.91% 6% 55 Templeton Global Bond A TPINX 0.9% 6% 54 PIMCO Real Return Instl PRRIX 0.88% 6% 53 American Funds American Mutual R4 RMFEX 0.64% 8% 51 Invesco Real Estate R5 IARIX 0.89% 5% 45 American Funds Europacific Growth R4 REREX 0.83% 5% 42 PIMCO Total Return Instl PTTRX 0.46% 8% 37 American Funds AMCAP R4 RAFEX 0.71% 5% 36 American Funds Washington Mutual R4 RWMEX 0.64% 5% 32 American Funds New Perspective R4 RNPEX 0.79% 4% 32 American Funds SMALLCAP World R4 RSLEX 1.05% 3% 32 PRIMECAP Odyssey Aggressive Growth POAGX 0.64% 4% 26 PGIM Jennison Small Company Z PSCZX 0.83% 3% 25 (*) in $, based on portfolio value of $100, % 697 Please read back page for important information about this report Page 9

12 Securities Average annual return as of Sep 28, 2018 Total returns, assuming reinvested dividends 10 years Yield SEC Yield Symbol 1 year 5 years or inception 12 month 30 day Web American Funds Income Fund of Amer R4 RIDEX 5.1% 7.4% 8% 2.77% 2.89% [a] PIMCO Total Return Instl PTTRX -1.5% 2.3% 5.1% 2.79% 2.58% [b] American Funds American Mutual R4 RMFEX 12% 11% 10.2% 1.86% 1.98% [b] Loomis Sayles Bond Retail LSBRX 0.6% 3% 6.9% 3.77% 3.44% [c] PIMCO Real Return Instl PRRIX 0.1% 1.3% 3.8% 3.25% 2.47% [c] American Funds New World R4 RNWEX 1.6% 4.2% 5.5% 1.07% 0.97% [c] Templeton Global Bond A TPINX -2% 1.6% 5.5% 4.44% 4.48% [d] Artisan Global Opportunities Inv ARTRX 12.8% 11.4% 12% 0% - [e] Invesco Real Estate R5 IARIX 4.6% 8.6% 7.3% 1.54% 1.54% [f] American Funds AMCAP R4 RAFEX 21.8% 13.5% 12.5% 0.34% 0.59% [f] American Funds Europacific Growth R4 REREX 1.8% 5.6% 5.9% 0.69% 1.18% [f] American Funds Washington Mutual R4 RWMEX 14.3% 12% 10.3% 1.82% 1.8% [f] PRIMECAP Odyssey Aggressive Growth POAGX 31.6% 18% 19% 0% - [g] American Funds New Perspective R4 RNPEX 14.2% 10.8% 10% 0.39% 0.79% [g] American Funds SMALLCAP World R4 RSLEX 13.7% 9.7% 10.5% 0% 0.06% [g] PGIM Jennison Small Company Z PSCZX 13.7% 10.5% 10.9% 0.29% - [h] CASH $CASH 1.6% 0.5% 0.3% 1.63% - if less than 10 years history, performance since inception and inception date are indicated. [a] [b] [c] [d] [e] [f] [g] [h] ETF performance is calculated based on the last closing price for the period. The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain current month-end performance information, please consult the websites referenced above. The performance quoted, reflects the reinvestment of dividends and capital gains, is net of expenses and does not reflect the maximum sales load. Such a fee, if taken into consideration, will reduce the performance quoted above. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing. Amounts in mutual funds are subject to fluctuations in value and market risk. Shares, when redeemed, may be worth more or less than their original cost. Please read back page for important information about this report Page 10

13 Securities An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors. Please read back page for important information about this report Page 11

14 Important Information This report presents past performance, which does not guarantee future results. The investment return and principal value will fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than return data quoted herein. The model portfolio results presented in this report are based on simulated investments, assuming that the holdings are purchased on the first day of the period indicated. When applicable, portfolio rebalancing is simulated to adjust the holdings back to their initial weights, according to the frequency indicated. The measure of return used in this report include distribution income such as dividends. The simulation of model portfolios does not take into account trading costs and tax implications. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown. Definitions Alpha: the excess return of the investment over the benchmark, after adjusting for risk. A positive value implies that the investment has performed better than expected, relatively to its risk. The benchmark used for alpha calculation in this report is the S&P500 Index Total Return. Backfill: for investments with an inception date that is later than the beginning of the reporting period, the returns of a similar investment are used to fill the missing data, when indicated. For example, a mutual fund class with long history can be used to backfill the history of another class that has a recent inception date. Beta: the volatility of the investment compared to the volatility of the benchmark. A value lower than 1 indicates that the investment is less volatile than the benchmark. A value greater than 1 indicates a higher volatility. The benchmark used for beta calculation in this report is the S&P500 Index Total Return. Cash and equivalents: short term, high credit quality and highly liquid investments such as money market funds. Correlation: a measure of association between two investments. A positive value indicates that the investments tend to move up and down at the same time. A negative value indicates that the investments tend to move in opposite directions. The maximum value is 1; the minimum value is -1. Expense ratio: for investment funds, the expense ratio as reported in the fund's prospectus. Information ratio: A risk-adjusted measure which captures excess or active returns and relates them to excess or active risk. The higher the information ratio, the better. Maximum drawdown: the largest percent retrenchment from an investment's peak value to the investment s valley value for a given period. Risk (Standard Deviation): a measure of dispersion of returns around their historical average. The higher the standard deviation, the more widely the investment's returns vary over time. Sharpe ratio: compares the investment return against the risk-free return (US Treasury Bill), after adjusting for risk. The greater the Sharpe ratio, the better its risk-adjusted performance. Sortino ratio: a modification of the Sharpe ratio, using downside deviation for the risk adjustment instead of standard deviation. The downside deviation only considers periods of negative returns. Up/Down capture ratio: shows what portion of a market performance was captured by an investment in up and down markets. Yield 12-month: the sum of distributions from the asset(s) over 12 trailing months, divided by the current market price of the asset(s). Yield SEC: for fixed income investments, the annualized yield based on the 30-day period ending on the last day of previous month. Asset data (c)2018 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Page 12