n s t i t u t e I N Y C L A - C L E T he ABC s of ETF s : C ombining the D iversity of Mutual F unds with the F lexibility of Stocks to G ain Tax E fficiency Prepared in connection with a Continuing Legal Education course presented at New York County Lawyers Association, 14 Vesey Street, New York, NY scheduled for December 9, 2010. F ac u l t y : Lorayne Fiorillo Managing Director Investments, Wells Fargo Advisors 2.5 TRANSITIONAL and Non-transitional MCLE CREDITS: This course has been approved in accordance with the requirements of the New York State Continuing Legal Education Board for a maximum of 2.5 Transitional and Non-Transitional credit hours: 2.5 Professional Practice. In addition to being accredited in the State of New York, this program has been approved by the Board of Continuing Legal Education of the Supreme Court of New Jersey for 2.5 hours of total CLE credit. Of these, 0 qualify as hours of credit for ethics/professionalism, and 0 qualify as hours of credit toward certification in civil trial law, criminal trial law, workers compensation law and/or matrimonial law.
Information Regarding CLE Credits and Certification The ABC s of ETFs Thursday, December 9, 2010, 6:00 PM 8:05 PM The New York State CLE Board Regulations require all accredited CLE providers to provide documentation that CLE course attendees are, in fact, present during the course. Please review the following NYCLA rules for MCLE credit allocation and certificate distribution. i. You must sign-in to receive your course materials and receive MCLE credit. ii. iii. iv. You will receive your MCLE certificate as you exit the room at the end of the course. The certificates will bear your name and will be arranged in alphabetical order on the tables directly outside the auditorium. If you arrive after the course has begun, you must sign-in and note the time of your arrival on the Sign In Sheets. Your time will be verified by the Program Assistant. If it is determined that you have received substantial educational value from the program, your CLE credits will be pro-rated and the CLE Certificate will be mailed to you within one week. Please note: We can only certify MCLE credit for the actual time you are in attendance. If you leave before the end of the course, you must sign-out and enter the time you are leaving on the Sign In Sheet. The time of departure will be verified by the Program Assistant. In signing this sheet, you are affirming that the time you have noted on the sheet is the accurate time of your departure. If it is determined that you have received substantial educational value from the program, your CLE credits will be pro-rated and the CLE Certificate will be mailed to you within one week. v. If you leave early and do not sign out, we will assume that you left at the midpoint of the course unless you can provide verification of course completion. If it is determined that you have received substantial educational value from the program, your CLE credits will be prorated and the CLE Certificate will be mailed to you within one week. Thank you for choosing NYCLA as your CLE provider!
New York County Lawyers Association Continuing Legal Education Institute 14 Vesey Street, New York, N.Y. 10007 (212) 267-6646 The ABCs of Exchange Traded Funds (ETFs) Thursday, December 9, 2010, 6:00 PM 8:05 PM Moderator: Featured Speaker: Bari Chase, Esq., Director, NYCLA CLE Institute Lorayne Fiorillo, Managing Director Investments, Wells Fargo Advisors Agenda 5:30 6:00 PM Registration 6:00-8:05 PM The ABC s of ETFs What are they? Traditional Non-traditional ETFs vs. Open-end mutual funds Features and characteristics: Tax efficiency; expense ratios; transparency; diversification; flexibility Risks Tax Treatment Costs Investors 8:05 PM Certificates Distributed 2.5 TRANSITIONAL and Non-transitional MCLE CREDITS: This course has been approved in accordance with the requirements of the New York State Continuing Legal Education Board for a maximum of 2.5 Transitional and Non-Transitional credit hours: 2.5 PP. In addition to being accredited in the State of New York, this program has been approved by the Board of Continuing Legal Education of the Supreme Court of New Jersey for 2.5 hours of total CLE credit. Of these, 0 qualify as hours of credit for ethics/professionalism, and 0 qualify as hours of credit toward certification in civil trial law, criminal trial law, workers compensation law and/or matrimonial law.
New York County Lawyers Association Continuing Legal Education Institute 14 Vesey Street, New York, N.Y. 10007 (212) 267-6646 The ABCs of Exchange Traded Funds (ETFs) Thursday, December 9, 2010, 6:00 PM 8:05 PM Table of Contents 1. Course Handout 2 Exchange Traded Funds Basics 3. Point & Figure Analysis: A Disciplined Approach to Buying & Selling Stocks, ETFs and Mutual Funds 4. Faculty Biography
ETF BASICS: AN INTRODUCTION TO ishares EXCHANGE TRADED FUNDS
Agenda Growth of ETFs The engine of ETFs Benefits of ETFs and ishares ETFs Low cost Tax efficiency Transparency Risk management Liquidity Modularity and strategies 2
Consistent growth of exchange traded funds (ETFs) ETFs experienced rapid growth during bear and bull markets There are over 900 U.S. ETFs covering global equity and fixed income with AUM of over U.S. $789 billion. U.S. ETF AUM 900 1,600 AUM ($ Billion) 800 700 600 500 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1,400 1,200 1,000 800 600 400 200 0 S&P 500 ishares ETFs Others Sources: FRC and Yahoo Finance, as of 12/31/09. Universe includes exchange traded grantor trusts. 3
ishares family of funds and mutual fund markets in net new asset flows Fund Family 2008 Net Flows ($B) 2009 Net Flows ($B) Vanguard 69.2 121.4 PIMCO 23.6 80.4 ishares 54.6 44.2 Franklin Templeton -20.2 18.4 Fidelity -34.6 14.9 T. Rowe Price 2.6 14.8 State Street Global Advisors 67.5 2.8 Dodge & Cox -11.6-1.3 Oppenheimer -11.3-3.4 American Funds -16.4-22.4 Fund families serve different market segments. Source: Strategic Insight, as of 12/31/09. Excludes funds of funds and money market funds. Information on American Funds, Vanguard Group, Dodge & Cox, State Street Global Advisors, T. Rowe Price, Dimensional Investment Group, Franklin Templeton Investments, Thornburg and Loomis Sayles is provided strictly for illustrative purposes and should not be deemed an offer to sell or a solicitation of an offer to buy shares of securities, other than the ishares Funds, that are described in this presentation. 4
WHAT IS AN ETF? 5
Familiar ground best of both worlds Like a stock Trading flexibility intraday on the exchange Long or short* Options Like an index fund Constructed to track benchmark indexes Low expense ratios Low turnover * With short sales, you risk paying more for a security than you received from its sale. Short sales subject to availability. 6
What sets an ETF apart? The creation/redemption process distinguishes ETFs from mutual funds and closed-end funds The creation/redemption process enables the unique benefits of ETFs 7
How traditional mutual funds work Buyers Fund Company Stock Exchange Sellers 8
The innovative mechanism of ishares ETFs Investor Financial Intermediary Stock Exchange Authorized Participants Fund Company Mutual funds and ishares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the ishares Funds will also generate tax consequences and transaction expenses. Certain traditional mutual funds can be tax efficient as well. 9
Know the Differences ishares ETFs Active Mutual Funds Strategy ishares ETFs seek to track a market index, before fees and expenses Most mutual funds are actively managed, seeking to outperform market indexes Accessibility Trading Redemption process Trade on exchanges intraday at market price, which may be greater or less than its NAV Shares not individually redeemed through the fund Accessed directly through the fund company or through a select broker. Pricing generally occurs once a day. Redeemed through fund company at end-of-day NAV, less applicable fees Fees Expense ratio plus transaction costs Expense ratios (typically higher than index-linked products 2 ); may charge sales loads or redemption fees Costs Tax implications Transactions generate tax consequences for the transacting shareholder only; obliged to distribute gains to all shareholders Shareholder transactions may generate tax consequences for all shareholders; obliged to distribute gains to shareholders Transparency Transparency Daily holdings disclosure 3 Generally quarterly holdings disclosure 2. Active funds typically charge higher fees than index-linked products due to increased trading and research expenses that may be incurred 3. In accordance with MSCI licensing, holdings for MSCI-indexed funds are updated monthly. 10
The benefits of ishares ETFs Low cost Tax efficiency Transparency Risk management Liquidity Modularity and strategies 11
COSTS OF INVESTING INTERNAL FEES AND TAXES 12
Internal expenses matter $100,000 investment for 10 years 8% annualized return 25 bps 50 bps 100 bps $215,892 gross value Internal fees $3,862 Foregone earnings $1,475 Net value $210,556 $7,625 $14,866 $2,930 $5,778 $205,338 $195,249 www.sec.gov/investor/tools/mfcc/fund-label.htm Does not include commissions or sales charges. 13
ishares Funds low expense ratios Fund Category bps ishares ETF Large cap 9 15 ishares S&P 500 ishares Russell 1000 Small cap 20 20 Fixed income 15 15 20 International 55-73 35 72 50 Sector 48 48 ishares S&P SmallCap 600 ishares Russell 2000 ishares Barclays Treasury Series ishares iboxx $ Investment Grade Corporate Bond ishares Barclays Aggregate & TIPS ishares MSCI International Series ishares MSCI EAFE ishares MSCI Emerging Markets ishares MSCI Pacific ex-japan ishares Dow Jones Sectors ishares S&P Global Sectors Transactions in shares of the ishares Funds will result in brokerage commissions. 14
Tax efficiency of ishares ETFs Index funds Low turnover Baskets of securities for shares Creation/redemption process Capital gain control Shareholders interact via exchange Taxed as an equity transaction ETFs can produce capital gain distributions. For example, during an underlying index reconstitution or corporate actions (especially foreign). 15
RISK MANAGEMENT 16
ishares ETFs are transparent Manage the unknown know what you own ishares holdings are published daily on ishares.com* Pricing of underlying holdings is refreshed continually No style drift Each benchmark represents a defined market segment Benchmark providers publish methodology Manage risk ishares ETFs are designed to closely track a benchmark * In accordance with MSCI licensing, holdings for MSCI-indexed funds are updated monthly. 17
Tracking of ishares Funds ishares Funds 3-Year Average Annual Tracking (as of 12/31/09) Expense Ratio (as of 1/1/10) S&P 500 0.01% 0.09% Russell 2000 0.09% 0.20% Dow Jones U.S. Total Market 0.16% 0.20% Dow Jones U.S. Technology 0.53% 0.48% MSCI Japan 0.38% 0.56% MSCI EAFE 0.02% 0.35% Source: BlackRock. Past tracking performance does not guarantee future performance. 18
LIQUIDITY 19
ishares ETFs offer enhanced liquidity Liquidity of underlying securities provides foundation for ETF liquidity. Exchange traded attribute provides additional layers of liquidity. Market participants compete for client orders, leading to tighter spreads. Investors receive price improvement by transacting in the ETF whenever they buy/sell the ETF inside the spread cost of the underlying portfolio basket of securities. Trading volume is not indicative of total liquidity in an ETF 20
ishares ETF liquidity offers price improvement 20,000 ishares MSCI Emerging Markets (EEM) $0.18 30,000 ishares Russell 2000 (IWM) $0.05 Annual Shares Traded (millions) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Current bid/ask spread in underlying = 7.5 cents. $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 Spread ($) Annual Shares Traded (millions) 25,000 20,000 15,000 10,000 5,000 Current bid/ask spread in underlying = 6 cents. $0.04 $0.03 $0.02 $0.01 Spread ($) 0 2004 2005 2006 2007 2008 2009 $0.00 0 2004 2005 2006 2007 2008 2009 $0.00 EEM Volume IWM Volume ETF Spread ($) ETF Spread ($) Sources: NYSEArca, Bloomberg, as of 12/31/09. 21
ishares MODULAR FAMILY OF FUNDS A SOLUTIONS-DRIVEN APPROACH 22
The benefits of modularity Building block format Enables implementation of strategies Indexing pre-2000 and post-2000 Source: FRC, as of 2/28/07. Universe includes exchange traded grantor trusts. 23
Modularity and portfolio completion S&P 1500 U.S. Equity Portfolio S&P 500 S&P 500 Growth S&P 500 Value Large Cap Stocks S&P MidCap 400 S&P SmallCap 600 S&P MidCap 400 Growth S&P MidCap 400 Value S&P SmallCap 600 Growth S&P SmallCap 600 Value For illustrative purposes only. 24
Modularity and core/satellite Russell 3000 Russell 1000 Russell 1000 Growth Russell 1000 Value Large Cap Growth Portfolio of Active Funds or Managers Large Cap Value Russell Midcap Russell Midcap Growth Russell Midcap Value Russell 2000 Russell 2000 Growth Russell 2000 Value Small Cap Growth Small Cap Value For illustrative purposes only. 25
Modularity and tactical investing Utilities Technology Consumer Services Energy Dow Jones U.S. Total Market Basic Materials Consumer Services Consumer Goods Energy Financial Healthcare Industrial Technology Telecom Utilities For illustrative purposes only. 26
Modularity and duration management Barclays Capital 1 3 Year Treasury Barclays Capital 7 10 Year Treasury Yield Barclays Capital 20+ Year Treasury iboxx $ Investment Grade Corporate Bond Barclays Capital 1 3 Year Credit Barclays Capital Intermediate Credit iboxx $ High Yield Corporate Duration For illustrative purposes only. 27
Good for clients. Good for business. Manage costs Manage risks Manage taxes Complementary to your business Portfolio managers and asset managers Wealth managers Consultants and advisors 28
Carefully consider the ishares Funds investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds prospectuses, which may be obtained by calling 1-800-iShares or by visiting www.ishares.com. Read the prospectuses carefully before investing. Investing involves risk, including possible loss of principal. 29
The information provided is not intended to be a complete analysis of every material fact respecting any strategy and has been presented for educational purposes only. Asset allocation models and diversification do not promise any level of performance or guarantee against loss of principal. Shares of ishares Funds are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Mutual funds and ishares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the ishares Funds will also generate tax consequences and transaction expenses. Certain traditional mutual funds can be tax efficient as well. When comparing stocks or bonds and ishares Funds, it should be remembered that management fees associated with fund investments, like ishares Funds, are not borne by investors in individual stocks or bonds. The annual management fees of ishares Funds may be substantially less than those of most mutual funds. Buying and selling shares of ishares Funds will result in brokerage commissions, but the savings from lower annual fees can help offset these costs. Neither BlackRock Institutional Trust Company, N.A. and its affiliates nor SEI and its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor. Index returns are for illustrative purposes only and do not represent actual ishares Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. 30
The ishares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association ( EPRA ), FTSE International Limited ( FTSE ), FTSE/Xinhua Index Limited ( FXI ), iboxx, J.P. Morgan Securities Inc., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts ( NAREIT ), New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor s, nor are they sponsored, endorsed, or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/Residential/Retail/Mortgage REITs or Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-us/north America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-north America Index vest in FTSE. "FTSE" is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; "Xinhua" is a trade- and servicemark of Xinhua Financial Network Limited. The ishares Funds are distributed by SEI Investments Distribution Co. (SEI). BlackRock Fund Advisors (BFA) serves as the investment advisor to the Funds. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A., neither of which is affiliated with SEI. 2010 BlackRock Institutional Trust Company, N.A. All rights reserved. ishares is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners. is-1944-0110 DB-1562-KM10-1/10 Not FDIC Insured No Bank Guarantee May Lose Value 31
For more information, visit www.ishares.com Get Started Education Center Product Information Document Library Tools & Charts Track-based learning Watch, listen, get credit Holdings, price and return information Client presentations and materials Portfolio modeling tools and reports 1-800-iShares 32
THANK YOU 33
This presentation has been approved by Wells Fargo Advisors Compliance Advertising Review (CAR) for the PCG/ISG channels and a reference number is included on the cover slide. As this presentation does not require re submission to CAR it must be used in its entirety and cannot be edited. Remember to add your name and firm approved title to the cover slide. If you are part of the Wells Fargo Advisors FINET channel please contact your CAR analyst for a FINET approved version.
Point & Figure Analysis Lorayne Fiorillo Managing Director - Investments The analysis in this presentation is known as a technical analysis. You may also want to consider quantitative and fundamental analysis before making any investment decisions. Please be aware that Dorsey Wright research can and will differ from the research provided by Wells Fargo Advisors own technical analysts. Wells Fargo Advisors, LLC is a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. CAR 0810-1562 Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency May Lose Value Not a Deposit of or Guaranteed by a Bank or Any Bank Affiliate
Point & Figure Analysis A Disciplined Approach to Buying and Selling Stocks, ETF s, and Mutual Funds The Company fundamentals looks great. All the analysts love it. So why is the stock going down? Point & Figure Coaching and Research GmbH
Fundamental Analysis vs. Technical Analysis What is Fundamental Analysis? 1. What to Buy 2. Company Management 3. Earnings Quality 4. Price/Earnings Ratio 5. Product Acceptance What is Technical Analysis? 1. When to Buy 2. Trend Analysis 3. Relative Strength 4. Momentum 5. When to Sell Dorsey, Wright & Associates 2009
Supply and Demand We all understand the basic forces of supply and demand. The same forces that affect prices in the supermarket also affect prices in the stock market. Stocks, sectors, and asset classes move in and out of favor just like produce in the supermarket. Dorsey, Wright & Associates 2009
Dorsey, Wright & Associates 2009
ORIGINAL POINT & FIGURE CHART 64 64 64 63 63 63 63 63 62 62 62 62 62 61 61 61 60 59 59 58 58 58 57 57 57 56 56 56 55 55 55 54 54 54 53 53 53 52 52 52 51 51 51 51 50 50 50 50 50 49 49 49 49 49 48 48 48 48 48 47 47 47 47 46 46 46 45 45 45 45 45 44 44 44 44 44 44 44 43 43 43 43 43 43 43 43 43 42 42 42 42 42 42 42 42 42 42 42 42 41 41 41 41 41 41 41 41 41 41 41 41 41 40 40 40 40 40 40 40 40 40 40 40 40 40 39 39 39 39 39 39 39 39 39 39 39 39 39 38 38 38 38 38 38 38 38 38 37 37 37 37 37 36 36 36 35 Dorsey, Wright & Associates 2009
Point & Figure Basics X s = Price is rising O s = Price is falling Alternate columns of X s and O s Minimum of 3 X s or O s in a column Time = First action in month use number. (1 for January, etc.) Use daily high & low for charting price action. Chart Source: www.dorseywright.com Dorsey, Wright & Associates 2009
Dorsey, Wright & Associates 2009 Chart Source: www.dorseywright.com
Stock (XYZ) Did the fundamental analysts learn from the 2000-2002 Technology Bubble? The following is a quote from the February 9 th New York Times article, Why Analysts Keep Telling Investors to Buy At the top of the market, they urged investors to buy or hold onto stocks about 95 percent of the time. When stocks stumbled, they stayed optimistic. Even in November, when credit froze, the economy stalled and financial markets tumbled to their lowest levels in a decade, analysts as a group rarely said sell. Dorsey, Wright & Associates 2009 Chart Source: www.dorseywright.com
Dorsey, Wright & Associates 2009 Chart Source: www.dorseywright.com
Chart Source: www.dorseywright.com Dorsey, Wright & Associates 2009
Causes of Price Movement Market Stock Sector Market and sector forces together typically cause 80% of the price movement in a stock. That means the company fundamentals usually account for less than 20% of a stock s price movement. This is the reason a company s stock price sometimes seems to move independently of the fundamentals! Source: The Latent Statistical Structure of Securities Price Changes Benjamin F. King Dorsey, Wright & Associates 2009
Typical Resource Allocation Stock Market Most people, however, spend 80% of their time on stock evaluation and only 20% on sector and market evaluation. In other words, they ignore where the greatest amount of risk lies the market and sector forces. Sector Source: The Latent Statistical Structure of Securities Price Changes Benjamin F. King Dorsey, Wright & Associates 2009
The Five Step Game Plan Step 1: Market Analysis Step 2: Sector Analysis Step 3: Fundamental Analysis Step 4: Technical Research Step 5: Risk management and Follow up Dorsey, Wright & Associates 2009
Step 1: Market Analysis Dorsey, Wright & Associates 2009
The Buy and Hold Myth Buy the Market in 1929 It took 25 years to get back to even. Buy it in 1973 It took 7.6 years to get back to even. Note: Past performance is no guarantee of future success. Dorsey, Wright & Associates 2009
Source: http://www.nytimes.com/interactive/2009/01/06/business/20090106-comeback-graphic.html Dorsey, Wright & Associates 2009
3 Legged Stool Approach to How Offensive or Defensive Should I Be? Leg #1: Equity Exposure and Managing the Trade Leg #2 & #3: Two of the Following Domestic Equities International Equities Commodities Foreign Currencies Fixed Income Cash Dorsey, Wright & Associates 2009
Leg #1: Measuring Supply & Demand Double Top One column of X s exceeds a previous column of X s. 39 O 38 O 37 O 36 O 35 O X 34 O X X 33 O X O X 32 O X O X 31 O O 30 39 Double Bottom One column of O s exceeds a previous column of O s. 38 X X 37 X O X O 36 X O X O 35 X O O 34 X O 33 X 32 X 31 X 30 X Dorsey, Wright & Associates 2009
Leg #1: NYSE Bullish Percent X s = Offense Wealth Accumulation O s = Defense Wealth Preservation Two Lines of Demarcation: 30% and 70% Measures Risk in the Market Does not have to move in tandem with the S&P 500 or the Dow Jones. Dorsey, Wright & Associates 2009 Chart Source: www.dorseywright.com
Leg #2 & 3: Compare One Asset Class to Another US Stocks Cash Fixed Income Int l Stocks Foreign Currencies Commodities Dorsey, Wright & Associates 2009
The Way Investors Invest Who Do You Believe is is Going to to Be a Better Football Team Next Year?
Relative Strength Calculation All major sports have a ranking system. The Point & Figure Relative Strength tool is the ranking system we use. Daily Calculation: Cash US Stocks X 100 = Relative Strength Reading This reading is plotted on a Point & Figure chart which then tells us whether we want to be in cash or US stocks
Cash or Stocks? Relative Strength: A Ranking System X s = Cash Wealth Preservation O s = Stocks Wealth Accumulation Cash: 2001-2002 Cash: 2008-Present Dorsey, Wright & Associates 2009 Chart Source: www.dorseywright.com
Cash or Commodities? Relative Strength: A Ranking System X s = Cash Wealth Preservation O s = Commodities Wealth Accumulation Date Range Column Cash - Money Market Continuous Commodity Index 7/15/98-10/15/02 X - Cash 18.41% 10.11% 10/15/02-8/15/08 O - Commod. 16.87% 115.71% 8/15/08-1/31/09 X - Cash 0.23% -26.97% Chart Source: www.dorseywright.com Dorsey, Wright & Associates 2009
Leg #2 & 3: Asset Class Evaluation Dorsey, Wright & Associates 2009
Reaching Your Destination X Int l Commodities Cash Equity Fixed Income
Technical analysis is based on the study of historical price movements and past trend patterns. There is no assurance that these movements or trends can or will be duplicated in the future. Dorsey, Wright & Associates developed the indicators described in this presentation. They have been prepared without regard to any particular investor s investment objectives, financial situation and needs. Accordingly, investors should not act on any recommendation (expressed or implied) or information in this presentation without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions Any statements nonfactual in nature constitute only current opinions and interpretations of their indicators, which are subject to change without notice. There may be instances when fundamental, technical and quantitative opinions may not be in concert. This and/or the accompanying information was prepared by or obtained from sources that Wachovia Securities believed to be reliable but does not guarantee its accuracy. Any opinions expressed or implied herein are not necessarily the same as those of the Wachovia Securities research department. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Data and opinions are current as of May 19, 2009. Additional information is available on request. Point & Figure Coaching and Research GmbH
Copyright 2009 Dorsey, Wright & Associates, Inc. Keep in mind that there is no assurance that this or any strategy will ultimately be successful or profitable. Point & Figure Coaching and Research GmbH
Lorayne Fiorillo is a Managing Director of Investments at Wells Fargo Advisors high networth office in Manhattan and the managing partner of the Fiorillo Financial Strategy Group of Wells Fargo Advisors. Ms. Fiorillo has over 23 years of experience as a wealth manager to individual and institutional clients, retirement plans and endowments. She has been a member of the firm s Premier Advisor and Director s Councils since 1992. She began her career at Prudential Securities, which was acquired by Wachovia Securities in 2004. Ms. Fiorillo is the author of the book, Financial Fitness in 45 Days, The Complete Guide to Getting Your Personal Finances in Shape., and co-author of the book, Start Your Own Business. Lorayne Fiorillo spent 6 years as the on-air Financial Advisor for Eyewitness News on WSOC TV in Charlotte, 11 years as a Market Commentator for National Public Radio on WFAE in Charlotte, and 10 years at the President of the CPA Club of Charlotte. As the Personal Finance editor for Entrepreneur Magazine, Ms. Fiorillo wrote over 60 monthly columns on all topics of personal finance. Lorayne Fiorillo has been interviewed on television and radio stations such as TBS, Bloomberg TV and Working Woman on the Run, and quoted in various magazines including Business Week, U.S. News & World Report, Home Magazine, and On Wall Street.