Long Duration Common Stock Investing A Contrarian Manifesto
|
|
- Hollie Hall
- 8 years ago
- Views:
Transcription
1 Long Duration Common Stock Investing A Contrarian Manifesto Presented by: Chief Investment Officer Bill Smead Smead Capital Management, All Rights Reserved.
2 Long Duration Common Stock Investing A Contrarian Manifesto Should everyone index everything? The answer is resoundingly no. In fact, if everyone indexed, capital markets would cease to provide the relatively efficient security prices that make indexing an attractive strategy for some investors. All the research undertaken by active managers keeps prices closer to values, enabling indexed investors to catch a free ride without paying the costs. Thus there is a fragile equilibrium in which some investors choose to index some or all of their money, while the rest continue to search for mispriced securities. Should you index at least some of your portfolio? This is up to you. I only suggest that you consider the option. In the long run this boring approach can give you more time for more interesting activities such as music, art, literature, sports, and so on. William F. Sharpe, 2002 Source:
3 Long Duration Common Stock Investing A Contrarian Manifesto Passive Investing vs. Active Investing Valuation Matters Long-Duration & High-Quality Why extend duration now?
4 Passive vs. Active Investing Argument for passive management Source: Vanguard The case for index-fund investing April 2013, Figure 8
5 Passive vs. Active Investing A more apples-to-apples comparison Percentage of General Equity Funds underperforming the S&P 500 index Source: Common Sense on Mutual Funds 10 th Anniversary Edition, John C. Bogle, pg. 158
6 Passive vs. Active Investing Passive continues to take market share Source: Morningstar 2012 Annual Global Flows Report: Figure 51
7 Passive vs. Active Investing On top of a tough expense ratio differential Source: Morningstar via FINRA Fund Analyzer, 2013
8 Passive vs. Active Investing Average turnover of the S&P 500 from was 4.52% per year Source: Standard & Poors. See disclosure
9 Passive vs. Active Investing Mutual Fund Portfolio Turnover was 105% in 2009 Source: Common Sense on Mutual Funds 10 th Anniversary Edition, John C. Bogle, pg. 35
10 Passive vs. Active Investing High turnover increases trading costs The Center for Retirement Research at Boston College study on Fees and Trading Costs of Equity Mutual Funds used in 401(k) plans: A universe of thousands of U.S. stock funds average trading costs of 1.44% of total assets Average of 0.14% in the bottom quintile Average of 2.96% in the top quintile These real costs are not reported in expense ratios Source: WSJ The Hidden Costs of Mutual Funds, March 1 st 2010
11 Passive vs. Active Investing High turnover increases trading costs Financial Analyst Journal, Jan / Feb 2013 Source: Financial Analyst Journal Jan/Feb 2013 Shedding Light on Invisible Costs: Trading Costs and Mutual Fund Performance, by Roger Edelen, Richard Evans, and Gregory Kadlec
12 Passive vs. Active Investing Source: Financial Planning Magazine What s in a Name? June 1 st 2010
13 Passive vs. Active Investing Investors of Stock Portfolios Benefit from Long Holding Periods S&P 500 Risk and Return Characteristics for select holding periods Source Oppenheimer Asset Management Investment Strategy March 8, 2010
14 Passive vs. Active Investing Investors Buy High and Sell Low Flows to Equity Funds Related to Global Stock Price Performance Monthly, The total return on equities is measured as the year-over-year change in the MSCI All Country World Total Return Stock Index. 2 Net new cash flow to equity funds is plotted as a six-month moving average. Sources: Investment Company Institute (2013 Fact Book) and Morgan Stanley Capital International
15 Passive vs. Active Investing Source: DALBAR Quantitative Analysis of Investor Behavior 2012 (QAIB). Average equity fund investor and average bond fund investor performances were used from the DALBAR study, QAIB Average stock investor, average bond investor and average asset allocation investor performance results are based on a DALBAR study, Quantitative Analysis of Investor Behavior (QAIB), DALBAR is an independent, Boston-based financial research firm. Using monthly fund data supplied by the Investment Company Institute, QAIB calculates investor returns as the change in assets after excluding sales, redemptions and exchanges. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses and any other costs. After calculating investor returns in dollar terms, two percentages are calculated for the period examined: Total investor return rate and annualized investor return rate. Total return rate is determined by calculating the investor return dollars as a percentage of the net of the sales, redemptions, and exchanges for the period. Equity Performance is represented by the Standard & Poor's 500 Composite Index, an unmanaged index of 500 common stocks generally representative of the U.S. stock market. The S&P 500 and S&P are registered trademarks of The McGraw-Hill Companies, Inc., and are licensed for use by Fidelity Distributors Corporation, and its affiliates. Fixed income performance is represented by the Barclays Capital Aggregate Index. The Barclays Capital Aggregate Index is an unmanaged market value-weighted index representing securities that are SEC-registered, taxable, and dollar denominated. This index covers the U.S. investment grade fixed rate bond market, with index components for a combination of the Barclays Capital government and corporate securities, mortgagebacked pass-through securities, and asset-backed securities. Past performance is no guarantee of future results. Performance of an index is not illustrative of any particular investment. It is not possible to invest directly in an index. Source Quantitative Analysis of Investor Behavior (QAIB) 2012, DALBAR, Inc. *Source FMRCO. Based on the performance of an investment weighted 50% to the S&P 500 index and 50% to the Barclays Capital Aggregate Bond Index. It is not possible to invest directly in an index
16 Long Duration Common Stock Investing A Contrarian Manifesto Passive Investing vs. Active Investing Valuation Matters Long-Duration & High-Quality Why extend duration now?
17 Valuation Matters P/E to Predict Earnings Growth: A Great Indicator Source: GMO White Paper The Trouble with Value, by Ben Inker, July 2005
18 Valuation Matters P/E to Predict Next Year s Return Inverse! Source: GMO White Paper The Trouble with Value, by Ben Inker, July 2005
19 Valuation Matters Fama / French: Valuation Effects in the US Annually In US dollars. US value and growth research index data provided by Fama/French. The S&P data are provided by Standard & Poor s Index Services Group. US small market data provided by the Center for Research in Security Prices, University of Chicago. Non-US developed markets value data provided by Fama/French from Bloomberg and MSCI securities data. Non-US developed markets small data compiled by Dimensional from Bloomberg, Style Research, London Business School, and Nomura Securities data. MSCI World ex USA Index is gross of foreign withholding taxes on dividends; copyright MSCI 2013, all rights reserved. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Compound returns have an assumed rate of return, are hypothetical, and are not representative of any specific type of investment. Standard deviation is one method of measuring risk and performance, and is presented as an approximation. Past performance is no guarantee of future results. Source:
20 Valuation Matters Valuation Effects Internationally Source: Growth versus Value and Large-Cap versus Small-Cap Stocks in International Markets ; W Scott Bauman; C Mitchell Conover; Robert E Miller. Financial Analysts Journal; Mar/Apr 1998
21 Valuation Matters Source:
22 Valuation Matters Story holds true over static holding periods Source: Francis Nicholson study shown in Contrarian investment strategies: the next generation, By David N. Dreman; Pg 143
23 Valuation Matters Source: Stocks for the long run: the definitive guide to financial market returns, By Jeremy J. Siegel (Fourth Edition), Figure 9-4 page 151
24 Long Duration Common Stock Investing A Contrarian Manifesto Passive Investing vs. Active Investing Valuation Matters Long-Duration & High-Quality Why extend duration now?
25 Long-Duration & High Quality SCM s Definition Meets an Economic Need Strong Moat High and Consistent Profitability High levels of Free Cash Flow Strong Balance Sheet
26 Long-Duration & High Quality Business Success leads Long-Term Returns, not Short-Term Source: Common Sense on Mutual Funds 10th Anniversary Edition, John C. Bogle, pg. 50
27 Long-Duration & High Quality Relative Performance of High Quality U.S. Stocks vs. Low Quality
28 Long-Duration & High Quality 75% of the Intrinsic Value of a stock is determined by the cash flows 11 years out or later 50% of a stocks value is derived from cash flows 25 years out or more of a companies life
29 Long Duration Common Stock Investing A Contrarian Manifesto Passive Investing vs. Active Investing Valuation Matters Long-Duration & High-Quality Why extend duration now?
30 Why extend duration now? History On Our Side Here are the 545 rolling 40-year real returns of U.S. Equities over the last 70 years As of February 2009, the average annual real returns for U.S. Equities was 3.86% for this 40-year ended period. This happens only 0.55% of the time from the 545 periods analyzed Source(s): Generational Opportunity - O Shaughnessey Asset Management
31 Why extend duration now? The 40-Year Rolling Return look back of today 40-Year Rolling Returns: Most recent month end 6.25% Real Return is just left of the bell curve, among the 545 observations as of Feb 2009 Source: Bloomberg
32 Why extend duration now? Average holding period may be finding a secular low Source: NYSE Facts and Figures
33 Why extend duration now? High-Frequency Trading in Dollar Volume from 1995 Q Q2 Source: High-Frequency Trading, Stock Volatility, and Price Discovery, page 41, by X. Frank Zhang / Yale University December 2010
34 Why extend duration now? Price growth has reached among the highest 10-year rolling return in 200 years! Past Performance is not a guarantee of future results Source: Stifel Nicolaus / Barry Bannister May 23, 2013
35 Why extend duration now? Commodities Headed Down: Unsustainable Demand Source: Michael Pettis on Business Insider May 5,
36 Why extend duration now? Bullish Stock Market Pre-Conditions: Oil vs S&P 8/83 12/99 Source: Thomson Baseline
37 Why extend duration now? Bullish Stock Market Pre-Conditions: Oil vs S&P 1/00 8/13 Source: Thomson Baseline
38 Why extend duration now? US Economy Cleansing Itself: Debt-Service Ratio Source: Thomson Baseline
39 Why extend duration now? Millennials are On the Rise Source: Barron s Cover April 29, 2013 On the Rise
40 Why extend duration now? Housing Source: Thomson Baseline
41 Why extend duration now? Small Cap s relative strong stretch is 10 years and counting Source - Bespoke: Large Caps vs. Small Caps March 9, 2010
42 Why extend duration now? Large disparity between High-Quality and Lower Quality Source: Thomson Baseline
43 Why extend duration now? MSCI Emerging Market S&P 500 High-Quality long-duration companies are out of favor Source Thomson Reuters Baseline
44 Why extend duration now? Stock Selection is hugely Out of Favor: High Correlation is Peaking Source
45 Long Duration Common Stock Investing A Contrarian Manifesto Conclusion Advantages of Passive Investing Lower Trading Costs caused by Low Turnover Lower Expenses Longer Holding Periods (Benefit from the Fundamentals of Portfolio Companies) A Prescription for Active Investing Long Duration Companies (High Quality) Valuation Sensitive Low Turnover
46 Definitions S&P 500 Index: A market-value weighted index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. MSCI Emerging Markets Index: An index created by Morgan Stanley Capital International (MSCI) that is designed to measure equity market performance in global emerging markets. The Emerging Markets Index is a float-adjusted market capitalization index. Fama French U.S. Large Value Index: Provided by Fama/French from CRSP securities data. Simulated strategy of the upper-half market cap, upper 30% book-to-market NYSE, excluding utilities. Fama French U.S. Large Growth Index: Provided by Fama/French from CRSP securities data. Simulated strategy of the upper-half market cap, lower 30% book-to-market NYSE, excluding utilities. Leverage: The relationship of debt to equity. Beta: A measure of return volatility. Earnings Volatility: A measure of earnings consistency. Profit Margin: The ratio of net income to net sales of a company expressed as a percentage Price/Earnings (P/E): the ratio of a firm s closing stock price & its trailing 12 months earnings/share. Price/Book (P/B): the ratio of a firm s closing stock price & its fiscal year end book value/share. Book value: is the net asset value of a company, calculated by subtracting total liabilities from total assets. Free Cash flow: measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income. Price to sales ratio (P/S): is a tool for calculating a stock's valuation relative to other companies, calculated by dividing a stock's current price by its revenue per share. Book Value: A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill. Sharpe Ratio: A measure or reward-to-variability ratio is a measure of the excess return (or Risk Premium) per unit of risk in an investment asset.
47 Definitions (cont.) Dow Jones 30: This is the Dow Jones Industrial Average which is a price-weighted average of 30 actively traded blue chip stocks, primarily industrials. It is one of the most widely used stock market indicators. S&P 500 Growth Index: Each stock of the S&P 500 Index is categorized as being either value or growth companies based on its price-to-book ratio and growth estimates. The S&P 500 Value Index contains those securities with higher price-to-book ratios and growth estimates. S&P 500 Value Index: Each stock of the S&P 500 Index is categorized as being either value or growth companies based on its price-to-book ratio and growth estimates. The S&P 500 Value Index contains those securities with lower price-to-book ratios and growth estimates. Cash Flow: A revenue or expense stream that changes a cash account over a given period. Debt/Equity: A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. ETF: a mutual fund that is traded on a stock exchange Mutual Fund Portfolio Turnover: A measure of the trading activity in the fund's portfolio of investments. In other words, how often securities are bought and sold. Trading Costs: The amount of brokerage commissions paid for buying and selling securities. Dividend Yield: The dividend per share expressed as a percentage of the share price. Price to Cash Flow (P/CF): The price/cash flow ratio is a ratio used to compare a company's market value to its cash flow. It is calculated by dividing the company's market cap by the company's operating cash flow in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the pershare operating cash flow. Russell 2000 Index: The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index. Cap-Weighted Turnover: Portfolio turnover that is computed by taking the total market value change in a portfolio/index and dividing that by the index/porfolio s total market value.
48 Definitions (cont.) Sharpe Ratio: A measure of the excess return (or Risk Premium) per unit of risk in an investment asset. Standard Deviation: The statistical measure of variance from the mean representing the dispersion of data (distance) from the mean. Correlation: A measure of relationship between two mathematical variables or measured data values. MSCI All Country Total Return Stock Index: The index includes a collection of stocks of all the developed and emerging markets in the world, as defined by MSCI. S&P 500 Turnover: Capitalization weighted turnover is calculated by adding the market value of company additions, company deletions, share issuances, share repurchases, special dividends, quarterly share and investable weight factor changes in the index during the year, divided by 2 and then divided by the average market value of the index over the year. From 2009 inclusive the turnover calculation is slightly changed. All remains as was described above only the calculation is done on a daily basis and summed for the period. The average of close and adjusted close market cap for the day immediately preceeding the market capitalization change date is used in the denominator to calculate that day's turnover. 200 day Commodity Chart: Source: Commodity prices are from Historical Statistics of the United States, a U.S. Census publication, and Moody s Economy.com (Thompson/Reuters CRB Futures). We use the PPI for All. Commodities from 1795 to 1956 (12-mo. Avg.) and the CRB Futures for 1957 to present (12-mo. avg.). The last data point is the 10-year moving average from 2002 to 2011 of the y/y change, with the 2011 value being Feb-16, 2011 divided by Feb-16, The S&P 500 and long-dated U.S. stock market total return is from A New Historical Database for the NYSE 1815 to 1925: Performance and Predictability written by the Yale School of Management, used with permission. This paper can be downloaded without charge from the Social Science Research Network Electronic Paper Collection. Post-1925 data for stocks are from Ibbotson/Morningstar and Standard & Poor s. Note that the stock market return included dividends. Chart formats and annotations are Stifel Nicolaus & Co.
49 Smead Capital Management th Avenue, Suite 2625 Seattle, WA (877)
BASKET A collection of securities. The underlying securities within an ETF are often collectively referred to as a basket
Glossary: The ETF Portfolio Challenge Glossary is designed to help familiarize our participants with concepts and terminology closely associated with Exchange- Traded Products. For more educational offerings,
More informationNon-FDIC Insured May Lose Value No Bank Guarantee. Time-Tested Investment Strategies for the Long Term
Time-Tested Investment Strategies for the Long Term Invest for the Long-Term Stay the Course Through Ups and Downs History shows that the market goes up and the market goes down. While there may be short-term
More informationSeek Opportunity in Lower Starting Valuations While Avoiding Crowded Trades
Seek Opportunity in Lower Starting Valuations While Avoiding Crowded Trades Developed Market (DM) Valuations Remain Attractive Developed Market (ex US) valuations remain attractive relative to history
More informationVirtual Stock Market Game Glossary
Virtual Stock Market Game Glossary American Stock Exchange-AMEX An open auction market similar to the NYSE where buyers and sellers compete in a centralized marketplace. The AMEX typically lists small
More informationSix Strategies for Volatile Markets When markets get choppy, it pays to have a plan for your investments, and to stick to it.
Six Strategies for Volatile Markets When markets get choppy, it pays to have a plan for your investments, and to stick to it. Fidelity Viewpoints 8/22/15 The markets have become volatile again, prompted
More informationSPDR S&P 400 Mid Cap Value ETF
SPDR S&P 400 Mid Cap Value ETF Summary Prospectus-October 31, 2015 Before you invest in the SPDR S&P 400 Mid Cap Value ETF (the Fund ), you may want to review the Fund's prospectus and statement of additional
More informationGlossary of Investment Terms
online report consulting group Glossary of Investment Terms glossary of terms actively managed investment Relies on the expertise of a portfolio manager to choose the investment s holdings in an attempt
More informationDe-Risking Solutions: Low and Managed Volatility
De-Risking Solutions: Low and Managed Volatility NCPERS May 17, 2016 Richard Yasenchak, CFA Senior Vice President, Client Portfolio Manager, INTECH FOR INSTITUTIONAL INVESTOR USE C-0416-1610 12-30-16 AGENDA
More informationNavigating Rising Rates with Active, Multi-Sector Fixed Income Management
Navigating Rising Rates with Active, Multi-Sector Fixed Income Management With bond yields near 6-year lows and expected to rise, U.S. core bond investors are increasingly questioning how to mitigate interest
More informationState Street Target Retirement Funds - Class K
The State Street Target Retirement Funds - Class K (the "Funds") represent units of ownership in the State Street Target Retirement Non-Lending Series Funds. The Funds seek to offer complete, low cost
More informationMorgan Stanley Institutional Fund Trust
INVESTMENT MANAGEMENT Morgan Stanley Institutional Fund Trust U.S. Equity Portfolios U.S. Mid Cap Value Portfolio U.S. Small Cap Value Portfolio Value Portfolio Prospectus Share Class and Ticker Symbol
More informationVanguard U.S. Stock ETFs Prospectus
Vanguard U.S. Stock ETFs Prospectus April 27, 2016 Exchange-traded fund shares that are not individually redeemable and are listed on NYSE Arca Vanguard Total Stock Market Index Fund ETF Shares (VTI) Vanguard
More informationGeneral Investment-Related Terms
General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual funds or share classes permitted under an SEC rule to help cover the costs associated with marketing and selling the fund. 12b-1
More informationSupplement to the Prospectus and Summary Prospectuses Dated April 28, 2015
Vanguard Large-Cap ETF Vanguard Growth ETF Vanguard Value ETF Vanguard Mid-Cap ETF Vanguard Mid-Cap Growth ETF Vanguard Mid-Cap Value ETF Vanguard Small-Cap ETF Vanguard Small-Cap Growth ETF Vanguard Small-Cap
More informationETF Basics: An Introduction to ishares Exchange Traded Funds
ETF Basics: An Introduction to ishares Exchange Traded Funds Agenda Growth of ETFs and Barclays Global Investors The engine of ETFs Unique benefits of ETFs and ishares Low cost Tax efficiency Transparency
More informationFREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS.
FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS December 31, 2014 Investment Adviser: MATSON MONEY, INC. 5955 Deerfield
More informationNon-FDIC Insured May Lose Value No Bank Guarantee. Time-Tested Investment Strategies for the Long Term
Non-FDIC Insured May Lose Value No Bank Guarantee Time-Tested Investment Strategies for the Long Term Rely on These Four Time-Tested Strategies to Keep You on Course. Buy Right and Sit Tight Keep Your
More informationSchwab Target Funds. Go paperless today. Simplify your financial life by viewing these documents online. Sign up at schwab.
Annual report dated October 31, 2015, enclosed. Schwab Target Funds Schwab Target 2010 Fund Schwab Target 2015 Fund Schwab Target 2020 Fund Schwab Target 2025 Fund Schwab Target 2030 Fund Schwab Target
More informationAssante Capital Management Ltd. Danielson Group Wealth Management
Assante Capital Management Ltd. Danielson Group Wealth Management Legal Disclaimer S2. In US dollars. Indices are not available for direct investment. Their performance does not reflect
More informationInsurance Dedicated Funds: Variable Insurance Trusts
At a Glance September 2015 Insurance Dedicated Funds: Variable Insurance Trusts Our goal at GSAM is to meet the financial goals of investors worldwide, now and in the future, with innovative investment
More informationT. Rowe Price Target Retirement 2030 Fund Advisor Class
T. Rowe Price Target Retirement 2030 Fund Advisor Class Supplement to Summary Prospectus Dated October 1, 2015 Effective February 1, 2016, the T. Rowe Price Mid-Cap Index Fund and the T. Rowe Price Small-Cap
More informationActive indexing: Being passive-aggressive with ETFs
Active indexing: Being passive-aggressive with ETFs Jim Rowley, CFA Senior Investment Analyst Vanguard Investment Strategy Group FOR FINANCIAL ADVISORS ONLY. NOT FOR PUBLIC DISTRIBUTION. Agenda Evolution
More informationTHE ROLE DIVIDENDS CAN PLAY IN INTERNATIONAL EQUITY INVESTING
THE ROLE DIVIDENDS CAN PLAY IN INTERNATIONAL EQUITY INVESTING Robert C. Sharpe, Vice President and Portfolio Manager, Heartland Advisors, Inc. Dr. G. Kevin Spellman, CFA, Director of Investment Management
More informationHSBC World Selection Funds April 30, 2016. Monthly Factsheets Class A and C Shares. Investment products: ARE NOT A BANK ARE NOT DEPOSIT OR
HSBC World Selection Funds April 30, 2016 Monthly Factsheets Class A and C Shares Aggressive Strategy Fund Balanced Strategy Fund Moderate Strategy Fund Conservative Strategy Fund Income Strategy Fund
More informationA Fidelity Investments Webinar Series: Basics of Stock Investing
A Fidelity Investments Webinar Series: Basics of Stock Investing 1 Fidelity Brokerage Services, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917. 2016 FMR LLC. All rights reserved. 734380.2.0
More informationWells Fargo Advantage Dow Jones Target Date Funds SM
Wells Fargo Advantage Dow Jones Target Date Funds SM Annual Report February 28, 2015 Wells Fargo Advantage Dow Jones Target Today Fund SM Wells Fargo Advantage Dow Jones Target 2010 Fund SM Wells Fargo
More informationMML SERIES INVESTMENT FUND
This Prospectus describes the following Funds. MML SERIES INVESTMENT FUND MML Money Market Fund seeks to maximize current income, preserve capital and maintain liquidity by investing in money market instruments.
More information2 11,455. Century Small Cap Select Instl SMALL-CAP as of 09/30/2015. Investment Objective. Fund Overview. Performance Overview
SMALL-CAP as of 09/30/2015 Investment Objective Century Small Cap Select Fund (CSCS) seeks long-term capital growth. Performance Overview Cumulative % Annualized % Quarter Year Since to Date to Date 1
More informationValue? Growth? Or Both?
INDEX INSIGHTS Value? Growth? Or Both? By: David A. Koenig, CFA, FRM, Investment Strategist 1 APRIL 2014 Key points: Growth and value styles offer different perspectives on potential investment opportunities,
More informationBuilding and Interpreting Custom Investment Benchmarks
Building and Interpreting Custom Investment Benchmarks A White Paper by Manning & Napier www.manning-napier.com Unless otherwise noted, all fi gures are based in USD. 1 Introduction From simple beginnings,
More informationChapter 9. The Valuation of Common Stock. 1.The Expected Return (Copied from Unit02, slide 39)
Readings Chapters 9 and 10 Chapter 9. The Valuation of Common Stock 1. The investor s expected return 2. Valuation as the Present Value (PV) of dividends and the growth of dividends 3. The investor s required
More informationCAPITAL MARKETS REVIEW Q4 2011
CAPITAL MARKETS REVIEW Q4 2011 Reviewing the quarter ended September 30, 2011 J. Matthew Hager // David S. Dennerll, CFP // Benjamin R. Stacy 255 East Fifth St. Suite 2210 // Cincinnati, OH 45202 513-287-6778
More informationEach Reorganization identified above is subject to certain conditions, including approval by shareholders of the applicable Target Fund.
Filed pursuant to Rule 497(e) File Nos. 033-19228 and 811-05443 CALAMOS INVESTMENT TRUST Supplement dated July 1, 2016 to the CALAMOS FAMILY OF FUNDS Summary Prospectuses for Class A, B and C and Class
More informationRetirement Balanced Fund
SUMMARY PROSPECTUS TRRIX October 1, 2015 T. Rowe Price Retirement Balanced Fund A fund designed for retired investors seeking capital growth and income through investments in a combination of T. Rowe Price
More informationNew Insights into the Case for Emerging Market Equities
www.brandes.com/institute New Insights into the Case for Emerging Market Equities The robust economic growth associated with emerging markets has attracted the attention of many institutional and private
More informationChapter 9. The Valuation of Common Stock. 1.The Expected Return (Copied from Unit02, slide 36)
Readings Chapters 9 and 10 Chapter 9. The Valuation of Common Stock 1. The investor s expected return 2. Valuation as the Present Value (PV) of dividends and the growth of dividends 3. The investor s required
More informationRules-Based Investing
Rules-Based Investing Disciplined Approaches to Providing Income and Capital Appreciation Potential Focused Dividend Strategy International Dividend Strategic Value Portfolio (A: FDSAX) Strategy Fund (A:
More information8 Threats. to PortfolioPerformance. Threat 2: Many Active Mutual Fund Managers Have Failed to Beat the Market
8 Threats to PortfolioPerformance The last decade has been a challenge for many investors, especially those investing for the long-term and retirement. Given declines in global stock markets, many investors
More informationThe Coming Volatility
The Coming Volatility Lowell Bolken, CFA Vice President and Portfolio Manager Real estate Securities June 18, 2015 www.advantuscapital.com S&P 500 Percent Daily Change in Price September 2008 to April
More informationWorkplace Education Series. Building a Portfolio for Any Weather
Building a Portfolio for Any Weather The Retirement Savings Series Part 1: Getting on the Right Path with Your Workplace Savings Understand the many advantages of saving at the workplace Find money in
More informationChanges to the OklahomaDream 529 Plan
Supplement dated December 31, 2015 to Oklahoma Dream Advisor Sold 529 Program Plan Disclosure Statement for Investors Using a Financial Advisor (Classes A and C) Dated November 3, 2014 This Supplement
More informationCapital Markets Review Q3 2010
Capital Markets Review Q3 2010 Reviewing the quarter ended June 30, 2010 Ross Marino, CFP, ChFC 210-4 Avondale Ave. Wilmington, NC 28403 www.rossmarino.com Material prepared by Raymond James for use by
More informationBalanced Fund RPBAX. T. Rowe Price SUMMARY PROSPECTUS
SUMMARY PROSPECTUS RPBAX May 1, 2016 T. Rowe Price Balanced Fund A fund seeking capital growth and current income through a portfolio of approximately 65% stocks and 35% fixed income securities. Before
More informationRETIREE HEALTH CARE BENEFIT TRUST ANNUAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2010 PREPARED BY MARTHA O. HAYNIE, CPA ORANGE COUNTY COMPTROLLER
RETIREE HEALTH CARE BENEFIT TRUST ANNUAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2010 PREPARED BY MARTHA O. HAYNIE, CPA ORANGE COUNTY COMPTROLLER EXECUTIVE SUMMARY The portfolio had a total rate of return
More informationLONG-TERM INVESTMENT PERFORMANCE
LONG-TERM INVESTMENT PERFORMANCE Source: Created by Raymond James using Ibbotson Presentation Materials 2011 Morningstar. All Rights Reserved. 3/1/2011 Used with permission. TYPES OF ASSET CLASSES Stocks
More informationSPDR Wells Fargo Preferred Stock ETF
SPDR Wells Fargo Preferred Stock ETF Summary Prospectus-October 31, 2015 PSK (NYSE Ticker) Before you invest in the SPDR Wells Fargo Preferred Stock ETF (the Fund ), you may want to review the Fund's prospectus
More informationTarget Retirement Funds
Prospectus March 1, 2015 Target Retirement Funds Institutional Class Administrative Class Investor Class Harbor Target Retirement Income Fund HARAX HARBX HARCX Harbor Target Retirement 2015 Fund HARGX
More informationNavigator Fixed Income Total Return
CCM-15-12-1 As of 12/31/2015 Navigator Fixed Income Navigate Fixed Income with a Tactical Approach With yields hovering at historic lows, bond portfolios could decline if interest rates rise. But income
More informationProspectus Socially Responsible Funds
Prospectus Socially Responsible Funds Calvert Social Investment Fund (CSIF) Balanced Portfolio Equity Portfolio Enhanced Equity Portfolio Bond Portfolio Money Market Portfolio Calvert Social Index Fund
More informationSample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants
Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.01 April 26, 2012 PART 1 General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual
More informationMcKinley Capital U.S. Equity Income Prospects for Performance in a Changing Interest Rate Environment
March 25, 2014 McKinley Capital U.S. Equity Income Prospects for Performance in a Changing Interest Rate Environment This paper analyzes the historic performance of the McKinley Capital Management, LLC
More informationBRANDES. Brandes Core Plus Fixed Income Fund Class A BCPAX Class E BCPEX Class I BCPIX. Brandes Credit Focus Yield Fund Class A BCFAX Class I BCFIX
BRANDES Brandes Core Plus Fixed Income Fund Class A BCPAX Class E BCPEX Class I BCPIX Brandes Credit Focus Yield Fund Class A BCFAX Class I BCFIX Prospectus January 30, 2015 The U.S. Securities and Exchange
More informationETFs 101 An Introduction to Exchange-Traded Funds
An Introduction to Exchange-Traded Funds Leading the Intelligent ETF Revolution Please refer to Slides 2 and 3 for Important Information. Shares are not individually redeemable for redemption to the Fund
More informationManning & Napier Earnings Release Supplement. For the period ended September 30, 2015
Manning & Napier Earnings Release Supplement For the period ended September 30, 2015 Forward Looking Statements This presentation contains forward-looking statements. Such statements can be identified
More informationJPMorgan U.S. Equity Fund
Prospectus J.P. Morgan U.S. Equity Funds Institutional Class Shares November 1, 2009 JPMorgan Disciplined Equity Fund JPMorgan Diversified Fund JPMorgan Mid Cap Value Fund JPMorgan Small Cap Growth Fund
More informationTYPES OF FINANCIAL RATIOS
TYPES OF FINANCIAL RATIOS In the previous articles we discussed how to invest in the stock market and unit trusts. When investing in the stock market an investor should have a clear understanding about
More informationExtended Strategy Descriptions for The Boeing Company Voluntary Investment Plan (VIP)
Extended Strategy Descriptions for The Boeing Company Voluntary Investment Plan (VIP) Strategy descriptions are effective December 12, 2014, unless otherwise noted. U.S. Large Companies Fund The fund invests
More informationS&P 500 Low Volatility Index
S&P 500 Low Volatility Index Craig J. Lazzara, CFA S&P Indices December 2011 For Financial Professional/Not for Public Distribution There s nothing passive about how you invest. PROPRIETARY. Permission
More informationCounty of Orange - 98984-01/02 Investment Performance as of 04/29/2016
County of Orange - 98984-01/02 Investment Performance as of 04/29/2016 Current performance may be lower or higher than performance data shown. Performance data quoted represents past performance and is
More informationImportant Information about Closed-End Funds and Unit Investment Trusts
Robert W. Baird & Co. Incorporated Important Information about Closed-End Funds and Unit Investment Trusts Baird has prepared this document to help you understand the characteristics and risks associated
More informationFixed Income 2015 Update. Kathy Jones, Senior Vice President Chief Fixed Income Strategist, Schwab Center for Financial Research
Fixed Income 2015 Update Kathy Jones, Senior Vice President Chief Fixed Income Strategist, Schwab Center for Financial Research 1 Fed: Slow and Low 2015 Fixed Income Outlook 2 Yield Curve Flattening 3
More informationSPDR S&P Software & Services ETF
SPDR S&P Software & Services ETF Summary Prospectus-October 31, 2015 XSW (NYSE Ticker) Before you invest in the SPDR S&P Software & Services ETF (the Fund ), you may want to review the Fund's prospectus
More information2013 Distribution Summary Investor, Premium & e -Series Breakdown of Cumulative Distributions for the Period January 1, 2013 to December 31, 2013
2013 Summary Breakdown of Cumulative s for the Period January 1, 2013 to December 31, 2013 TD Comfort Portfolios Investor Series TD Comfort Conservative Portfolio 0.070042 0.024999 0.040647 0.051698 0.187386
More informationGLOSSARY OF INVESTMENT-RELATED TERMS FOR NATIONAL ELECTRICAL ANNUITY PLAN PARTICIPANTS
GLOSSARY OF INVESTMENT-RELATED TERMS FOR NATIONAL ELECTRICAL ANNUITY PLAN PARTICIPANTS General Information This Glossary of Investment-Related Terms for National Electrical Annuity Plan Participants (the
More informationNavigator Fixed Income Total Return
CCM-15-08-1 As of 8/31/2015 Navigator Fixed Income Total Return Navigate Fixed Income with a Tactical Approach With yields hovering at historic lows, bond portfolios could decline if interest rates rise.
More informationNew York's 529 Advisor-Guided College Savings Program
New York's 529 Advisor-Guided College Savings Program yr AVERAGE TOTAL Expense ratio AGE-BASED PORTFOLIOS JPMorgan 529 Aggressive Age-Based Portfolio (Age 0-5) 2,3,4,5,6,7,8,9,37 Class A - 5/4/202, 5705,
More informationWhat you will learn today. Different categories of investments Choosing your investment mix Common investor pitfalls Determining your next steps
Investing 101 What you will learn today Different categories of investments Choosing your investment mix Common investor pitfalls Determining your next steps 2 Asset Allocation One of Your Most Important
More informationEmotions and your money
Emotions and your money 5 potentially costly mistakes that your financial advisor can help you avoid Emotions can cost investors Break the cycle of emotional investing by partnering with an experienced
More informationVIP Benchmark Glossary
VIP Benchmark Glossary Benchmark descriptions in this document are effective as of December 12, 2014. A benchmark is an industry-standard method to measure the overall performance of specific types of
More informationInvestments 11 - Final Investment Plan Questions & Answers
Personal Finance: Another Perspective Investments 11 - Final Investment Plan Questions & Answers Updated 2013-11-04 11 Questions 1. How do I set up an investment account? 2. What is the difference between
More informationHigh Yield Fixed Income Credit Outlook
High Yield Fixed Income Credit Outlook Brendan White, CFA Portfolio Manager, Touchstone High Yield Fund Fort Washington Investment Advisors, Inc. September 28, 2011 The opinions expressed are current as
More informationMainStay VP Janus Balanced Portfolio
Summary Prospectus May 1, 2015 MainStay VP Janus Balanced Portfolio To Statutory Prospectus To Statement of Additional Information Before you invest, you may want to review the Portfolio's Prospectus,
More informationHIGH DIVIDEND STOCKS IN RISING INTEREST RATE ENVIRONMENTS. September 2015
HIGH DIVIDEND STOCKS IN RISING INTEREST RATE ENVIRONMENTS September 2015 Disclosure: This research is provided for educational purposes only and is not intended to provide investment or tax advice. All
More informationHow To Calculate Financial Leverage Ratio
What Do Short-Term Liquidity Ratios Measure? What Is Working Capital? HOCK international - 2004 1 HOCK international - 2004 2 How Is the Current Ratio Calculated? How Is the Quick Ratio Calculated? HOCK
More informationSummary Prospectus August 28, 2015, as revised September 21, 2015
EXCHANGE TRADED CONCEPTS TRUST ROBO Global TM Robotics and Automation Index ETF Summary Prospectus August 28, 2015, as revised September 21, 2015 Principal Listing Exchange for the Fund: NASDAQ Stock Market
More informationTemplates available in Excel 97 (Excel 8) and higher versions:
Excel Templates Templates available in Excel 97 (Excel 8) and higher versions: All of the Excel templates in Research Insight can be customized to fit your own particular needs. Company Fundamental Analysis
More informationStart investing in yourself today, with help from the University System of Maryland Supplemental 403(b) Plan and Fidelity.
University System of Maryland Supplemental 403(b) Plan (#65612) Start investing in yourself today, with help from the University System of Maryland Supplemental 403(b) Plan and Fidelity. Invest some of
More informationWhen rates rise, do stocks fall?
PRACTICE NOTE When rates rise, do stocks fall? The performance of equities and other return-seeking assets in rising and falling interest rate scenarios, January 1970 through September 2013 William Madden,
More informationStart investing in yourself today, with help from the. Optional Retirement Plan (ORP) and Fidelity.
State of Maryland - Institutions of Higher Education Optional Retirement Plan (ORP) Plan No. 65575 Start investing in yourself today, with help from the State of Maryland - Institutions of Higher Education
More informationSample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants. Version 1.01
Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.01 April 26, 2012 General Information SAMPLE GLOSSARY OF INVESTMENT-RELATED TERMS FOR DISCLOSURES TO
More informationExchange Traded Funds A Brief Introduction
Exchange Traded Funds A Brief Introduction spdrs.com What You Need to Know about ETFs ETF Basics Potential Benefits of ETFs ETFs versus Mutual Funds The Role of ETFs in Your Portfolio Our Next Steps Frequently
More informationTHE STOCK MARKET GAME GLOSSARY
THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The
More informationANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK?
May 9, 2016 ANY GAS LEFT IN THE HIGH-YIELD MUNICIPAL TANK? A favorable credit environment and technical factors have contributed to strong high-yield municipal performance. We see limited room for further
More informationVanguard Target Retirement Funds
Vanguard Target Retirement Funds Supplement to the Prospectus Dated January 27, 2014 Prospectus Text Changes The Average Annual Total Returns table for Vanguard Target Retirement Income Fund is replaced
More informationJanus Investment Fund
February 27, 2009 Growth & Core Janus Balanced Fund Janus Contrarian Fund Janus Enterprise Fund Janus Fund Janus Growth and Income Fund Janus Orion Fund Janus Research Core Fund (formerly named Janus Fundamental
More informationMorningstar Investment Research Center User s Guide
Morningstar Investment Research Center User s Guide Welcome to the Guide to Morningstar Investment Research Center. Morningstar Investment Research Center is among today s most comprehensive financial
More informationThe Investor s Guide to REITs
by NAREIT Contents: p2. REIT Basics p2. REITs in the S&P Indexes p3. Fundamentals of REITs p4. Returns Delivered by REITs p4. Characteristics of REIT Investment p6. REIT Valuation p6. Benefits of Real
More informationTAX-MANAGED SMAS: BETTER THAN ETFS?
September 2015 Rey Santodomingo, CFA Director of Investment Strategy Tax Managed Equities Tim Atwill, Ph.D., CFA Head of Investment Strategy TAX-MANAGED SMAS: BETTER THAN ETFS? Exchange traded funds, or
More informationBlackRock Diversified Income Portfolio. A portfolio from Fidelity Investments designed to seek income while managing risk
BlackRock Diversified Income Portfolio A portfolio from Fidelity Investments designed to seek income while managing risk Fidelity Investments has formed a strategic alliance with BlackRock Investment Management,
More informationOklahoma State University Spears School of Business. Financial Statements
Oklahoma State University Spears School of Business Financial Statements Slide 2 Sources of Information Annual reports (10K) & Quarterly reports (10Q) SEC EDGAR Major databases COMPUSTAT(access through
More informationLeveraging the Best of Active and Passive Investment Approaches
Leveraging the Best of Active and Passive Investment Approaches BY DAVID B. MAZZA, HEAD OF ETF INVESTMENT STRATEGY, AMERICAS, AND THOMAS F. GUARINI, PRODUCT SPECIALIST, STATE STREET GLOBAL ADVISORS The
More informationThe Fundamentals of Asset Class Investing
The Fundamentals of Asset Class Investing The first goal of any financial plan should be to avoid outliving your money. FPO IMAGE NEED FINAL SELECTION 1 Investing is About You We are living longer. No
More informationValue Investing: Has It Worked in Emerging Markets?
For the 5-year period as of year-end 2007, the MSCI Emerging Markets Index delivered an annualized average return of 33.6%, 1 well above its 15-year annualized average return of 9.6%. Similarly, the MSCI
More informationEvolving beyond plain vanilla ETFs
SCHWAB CENTER FOR FINANCIAL RESEARCH Journal of Investment Research Evolving beyond plain vanilla ETFs Anthony B. Davidow, CIMA Vice President, Alternative Beta and Asset Allocation Strategist, Schwab
More informationEmerging Markets Equity
Fact Sheet as of March 31, 2016 Emerging Markets Equity FIRM OVERVIEW Founded: 1974 Staff Total: 317 Investment Professionals: 52 Ownership: Employee-owned Investment Style: Value Investment Process: Bottom-up
More informationDiversify your global asset allocation approach by focusing on income and income growth.
Diversify your global asset allocation approach by focusing on income and income growth. Institutional investors have embraced global asset allocation (GAA) strategies as a way to pursue returns with low
More informationRules-Based Investing
Rules-Based Investing Disciplined Approaches to Providing Income and Capital Appreciation Potential Focused Dividend Strategy International Dividend Strategic Value Portfolio (A: FDSAX) Strategy Fund (A:
More informationHow to manage your portfolio and emotions during volatile markets. Video Transcript. Recorded on March 6, 2015
How to manage your portfolio and emotions during volatile markets Video Transcript Recorded on March 6, 2015 Featuring: Michael Santoli, senior columnist, Yahoo! Finance Matthew Diczok, managing director,
More information