Historical Drawdowns & Recoveries of the Salient Risk Parity V15 Index

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Historical Drawdowns & Recoveries of the Salient Risk Parity V15 Index"

Transcription

1 Historical Drawdowns & Recoveries of the Salient Risk Parity V15 Index July 1, 2013 Lee Partridge, CFA Rusty Guinn

2 This information is being provided to you by Salient Index Management, LLC. It is intended solely for educational purposes. No other distribution or use of these materials has been authorized. The opinions expressed in these materials represent the personal views of the professionals of Salient Index Management, LLC and is based on their broad based investment knowledge, experience, research and analysis. It must be noted, however, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future Index results. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. Please note that the returns presented in this paper are the result of a hypothetical investment framework. Backtested performance is NOT an indicator of future actual results and do the results above do NOT represent returns that any investor actually attained. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Certain assumptions have been made for modeling purposes and are unlikely to be realized. No representations and warranties are made as to the reasonableness of the assumptions. Changes in these assumptions may have a material impact on the backtested returns presented. This information is provided for illustrative purposes only. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Actual performance may differ significantly from backtested performance. The backtested results do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. No cash balance or cash flow is included in the calculation. The Salient Risk Parity V15 Index represents hypothetical performance since the Index does not reflect any particular investment program and may, therefore, have certain inherent limitations, some of which are described below. Since this is Index performance, it does not represent the performance of any investment account or the results of actual trading, and no representation is being made that any account using the Index as a benchmark will experience performance similar to the Index s performance. In fact, it is not uncommon for investment programs targeting a particular index to have performance that diverges materially from the performance of the relevant index. In addition, hypothetical performance does not involve financial risk, and no hypothetical performance record can completely account for the impact of financial risk that exists in an investment program that is actually trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. The Index has been retrospectively calculated and did not exist prior to March Accordingly, the index performance shown for periods prior to March 2013 has been developed with the benefit of hindsight. Certain futures contracts and credit default swap instruments comprising the underlying asset classes were not available at inception of the retrospective Index performance calculation beginning in January Futures contracts unavailable at Index inception were included in the underlying asset classes as available. Credit default swaps comprising the Global Credit asset class were included beginning February Past performance is not necessarily indicative of how the Index will perform in the future. Index performance does not reflect the deduction of fees or expenses. Note that an investor cannot invest directly in the Index. The Salient Risk Parity Index Committee selects, maintains, and reviews the list of futures contracts and credit default swap indices making up the Salient Risk Parity Index and oversees the computation of Index weights for each asset. The Salient Risk Parity Indices are the exclusive property of Salient Index Management, LLC, which has contracted with NASDAQ OMX Group, Inc. to administer and calculate the Index. NASDAQ OMX Group, Inc. shall have no liability for any errors or omissions in calculating the Index. Information provided by Salient Index Management, LLC, a wholly owned affiliate of Salient Partners, L.P. Salient is the trade name for Salient Partners, L.P., which together with its subsidiaries provides asset management and advisory services. 2

3 The Salient Risk Parity V15 Index (the Index ) has been challenged by prevailing market conditions in the second quarter of Based on these Index developments, we thought it appropriate to share some information about the historical performance to provide some context on this environment. Recent Performance The Index was down 12.56% for the month of June. This extends a drawdown in the Index that began in May to a total of 17.84%. 1 In addition to the magnitude, recent performance stands out in large part because all of the asset classes utilized in the Index, which we consider to be core market exposures, have declined in value. Each of equities, rates, commodities and momentum have contributed to the month s performance. Return (%) 0% -2% -4% -6% -8% Exhibit 1: Salient Risk Parity V15 Index June 2013 Performance Attribution by Asset Class -1.83% -2.52% -3.13% -5.07% While discussion of return drivers has justifiably focused on rates, the rise in correlations among the various asset classes has in fact been the primary change relative to prior periods. In particular, the rise in correlation between equities and rates has been a significant contributing factor to the underperformance of the Index. -10% -12% -14% % Commodities Momentum Equities Rates TOTAL Asset Class Attribution refers to the contributions of sub-components of the Index to aggregate Index performance in a particular period. Source: Salient Index Management, LLC, July 1, Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. The percentages represented here have been rounded to the nearest tenth and are for illustrative purposes only. Current Positioning During the second quarter of 2013, we have witnessed rising correlations across both risky and safe haven assets and heightened risk across all liquid markets. These rising risk and correlation levels have resulted in more volatile returns for the Index. Because our Index model is responsive to these changes, we will likely lower our aggregate exposures to markets over the months ahead as we continue to target a consistent level of portfolio risk regardless of market conditions. By doing this in a systematic manner, we attempt to remove the emotional element of fear and greed from the equation. As shown in the figure on the following page, large down moves and large up moves in the Index often occur together, and we believe investors attempts to time these movements are unlikely to generate favorable results. The performance of the Index on June 20, 2013 is represented by the last observation in the lower right hand corner of the chart on the following page. 1 Index returns are unaudited and subject to change without notice. 3

4 Exhibit 2: Daily Salient Risk Parity V15 Index Returns with ±1 and ±2 Standard Deviation Bands (January 1, 1990 June 30, 2013) Standard Deviation Bands identify levels which are one or two standard deviations above or below zero based on observed daily volatility since inception of the Index. Source: Salient Index Management, LLC, July 1, Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. Historical Comparisons While the current drawdown for the Index is significant, we believe that it is helpful to compare it to prior drawdowns for the Index and to those of other indices. As shown in Exhibit 3 below, the Index historically experienced four drawdowns deeper than what the Index has experienced thus far in May and June As shown below, historical Index drawdowns have been relatively brief in length, and have typically recovered with reasonable speed. Four of the five deepest drawdowns recovered in less than a year, and the deepest drawdown recovered in less than two years. Exhibit 3: Historical Salient Risk Parity V15 Index Drawdowns Greater than 15% (January 1, 1990 June 30, 2013) Drawdown Length Recovery Peak Valley % /29/ /31/ % /30/1998 7/30/ % /31/1994 6/30/ % /31/1989 4/30/ % 2 N/A 4/30/2013 N/A % /31/2001 9/28/2001 Drawdown refers to the amount that the Index is below its prior peak level. A drawdown begins when an index falls below its prior peak level and ends or recovers when it exceeds its prior peak level. Current drawdown is measured through 6/30/13. All other drawdowns represent month-end returns. Source: Salient Index Management, LLC, July 1, Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. The percentages represented here have been rounded to the nearest tenth and are for illustrative purposes only. 4

5 It is likewise instructive to consider a comparison with drawdowns from other well-known indices. Below we present the largest historical drawdowns experienced by the S&P 500 Index and by a traditional balanced allocation of 60% to the S&P 500 Index and 40% to the Barclays Aggregate Bond Index. 2 We believe the conclusion to draw from the data below is that equities typically experience deeper, more frequent drawdowns. In addition, we also note that the time-to-recovery for the Index has been, on average, briefer than drawdowns for either the S&P 500 or the lower volatility 60/40 portfolio. Exhibit 4: Historical S&P 500 Drawdowns >15% (December 31, 1969 June 30, 2013) Drawdown Length Recovery Peak Valley % /31/2007 2/28/ % /31/2000 9/30/ % /31/1972 9/30/ % /31/ /30/ % /31/1969 6/30/ % /30/1980 7/31/ % 2 3 6/30/1998 8/31/1998 Exhibit 5: Historical 60/40 Drawdowns >15% (December 31, 1989 June 30, 2013) Drawdown Length Recovery Peak Valley % /31/2007 2/28/ % /31/2000 9/30/2002 Source: Bloomberg, July 1, Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. The percentages represented here have been rounded to the nearest tenth and are for illustrative purposes only. While we do not know how rapidly the Index will recover from this drawdown, we believe that the paths of historical recoveries form a consistent narrative. We note in particular that, with the exception of 2008, most Index drawdowns experience much of their underperformance during the first three months of the drawdown. Exhibit 6, on the following page, identifies the path experienced by the largest drawdowns in the Index s history. We also believe that it is worthwhile to consider that historical drawdowns of varying lengths have been frequent events throughout the history of the Index. The compelling long-term return profile of the Index reflects performance achieved in spite of these drawdowns. Exhibit 7, on the following page, presents the historical compounded returns of the Index against the drawdowns experienced over that history. 2 The indices referenced herein are broad-based securities market indices and used for illustrative purposes only. They have been selected as they are well known and are easily recognizable. Broad-based securities indices are unmanaged and are not subject to fees and expenses typically associated with managed accounts or investment funds. Investments cannot be made directly into an index. Past performance is no guarantee of future results. Descriptions of each index can be found at the end of this paper. 5

6 80% 60% 40% Drawdown 2008 Drawdown 1999 Drawdown 1994 Drawdown 1990 Drawdown 2001 Exhibit 6: Historical Drawdown & Recovery Paths for the Salient Risk Parity V15 Index Current Drawdown Return (%) 20% 0% -20% -40% Source: Salient Index Management, LLC, July 1, Current drawdown is April 30, 2013-June 30, The dates of other drawdown periods can be found in Exhibit 3. Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. Exhibit 7: Salient Risk Parity V15 Index Level & Drawdowns (January 1, June 30, 2013) % % % Growth of $100 (Log Scale) Drawdown Index Trend Line 5% -5% -15% -25% Drawdown % 12/29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/ /29/2012 Date Source: Salient Index Management, LLC, July 1, Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. 6

7 As shown in Exhibit 8 below, in the year after the five worst annual returns for the Index, returns were considerably higher, on average. Likewise, in no calendar year after one of these worst years has the following year s return been negative. There can be no guarantee that this Index experience will persist into the future, but we believe that it reflects the how responsive the Salient Risk Parity V15 Index can be to changing economic and market regimes. Exhibit 8: Salient Risk Parity V15 Index Performance Before & After (January 1, 1990 June 30, 2013) 5 Worst Calendar Years Return Return in Preceding Return in Following Year Year 12/31/ % 31.33% 15.66% 12/31/ % 25.37% 33.18% 12/31/ % N/A* 21.75% 12/30/ % 74.35% 52.80% 12/31/ % 13.79% 25.37% Worst % 13.79% 15.66% Average -5.43% 36.21% 29.75% *The analysis begins on 1/1/90; hence there was no preceding year. Worst represents the worst annual performance over the analysis period. Average provides the average of the performance for each of the 10 years presented in the table. Source: Salient Index Management, LLC, July 1, Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. The percentages represented here have been rounded to the nearest tenth and are for illustrative purposes only. The performance following significant drawdowns has likewise tended to be stronger. In some cases, near-term performance continued to be weak but typically recovered over the next 1-2 years. Exhibit 9: Salient Risk Parity V15 Index Performance After > 15% Drawdowns (January 1, June 30, 2013) Drawdowns > 15% Depth of Drawdown (Annualized) 4/30/ % 13.97% 29.90% 25.07% 3/31/ % -0.43% 13.45% 35.08% 5/31/ % 13.47% 34.43% 17.90% 9/28/ % 8.10% 25.38% 35.52% 9/30/ % -3.11% 5.74% 21.97% Worst % -3.11% 5.74% 17.90% Average % 6.40% 21.78% 27.11% Performance after drawdowns assumes investment at month-end of period where drawdown first reached 15%. Source: Salient Index Management, LLC, July 1, Note that an investor cannot invest directly into an index. Past performance is no guarantee of future Index results. The percentages represented here have been rounded to the nearest tenth and are for illustrative purposes only. Summary Our analysis indicates that the Index s record would have been achieved in conjunction with relatively frequent and occasionally meaningful drawdowns, such as the one experienced in May and June However, we observe, based upon our analysis, that these drawdowns would have been briefer 7

8 than those experienced by both equity and traditional balanced 60/40 strategies over the same time periods, and would typically have recovered more quickly. Index Definitions S&P 500 Total Return Index: A stock market index based on the common stock prices of 500 top publicly traded American companies. Barclays Aggregate Bond Index: A U.S. Aggregate index that covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes government securities, mortgage-backed securities, asset-backed securities and corporate securities all with a maturity of greater than one year. 8

Assessing the Risks of a Yield-Tilted Equity Portfolio

Assessing the Risks of a Yield-Tilted Equity Portfolio Engineered Portfolio Solutions RESEARCH BRIEF Summer 2011 Update 2014: This Parametric study from 2011 is intended to illustrate common risks and characteristics associated with dividendtilted equity portfolios,

More information

Retirement 2015 Fund

Retirement 2015 Fund SUMMARY PROSPECTUS TRRGX PARHX RRTMX Investor Class Advisor Class R Class October 1, 2016 T. Rowe Price Retirement 2015 Fund A fund managed based on a specific retirement year that seeks capital growth

More information

The Case for Senior Loans

The Case for Senior Loans The Case for 1.877.622.5552 www.firsttrust.ca : A Potential Opportunity for Investors With interest rates at historically low levels, these are challenging times to invest for income. At the same time,

More information

A L L I A N Z V A R I A B L E I N S U R A N C E P R O D U C T S F U N D O F F U N D S T R U S T ( T H E T R U S T )

A L L I A N Z V A R I A B L E I N S U R A N C E P R O D U C T S F U N D O F F U N D S T R U S T ( T H E T R U S T ) A L L I A N Z V A R I A B L E I N S U R A N C E P R O D U C T S F U N D O F F U N D S T R U S T ( T H E T R U S T ) Prospectus dated April 25, 2016 The AZL Fusion Funds AZL MVP Fusion SM Balanced Fund

More information

Supplement to Prospectus Dated October 1, 2015

Supplement to Prospectus Dated October 1, 2015 T. Rowe Price Retirement 2005 Fund T. Rowe Price Retirement 2010 Fund T. Rowe Price Retirement 2015 Fund T. Rowe Price Retirement 2020 Fund T. Rowe Price Retirement 2025 Fund T. Rowe Price Retirement 2030

More information

The Multi-Disciplinary Income Fund

The Multi-Disciplinary Income Fund The Multi-Disciplinary Income Fund 1 ST QUARTER 2016 Distributor: Kinetics Funds Distributor LLC is not an affiliate of Kinetics Mutual Funds, Inc. Introduction Decades of declining yields fueled gains

More information

J.P. Morgan Structured Investments

J.P. Morgan Structured Investments July 2012 J.P. Morgan Structured Investments The JPMorgan ETF Efficiente 5 Index Strategy Guide Important Information The information contained in this document is for discussion purposes only. Any information

More information

J.P. Morgan Structured Investments

J.P. Morgan Structured Investments October 2010 J.P. Morgan Structured Investments THE S&P 500 RISK CONTROL 10% EXCESS RETURN INDEX STRATEGY GUIDE THE S&P 500 RISK CONTROL 10% EXCESS RETURN INDEX STRATEGY GUIDE The S&P 500 Risk Control

More information

Non-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 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 information

The potential benefits of diversification

The potential benefits of diversification The potential benefits of diversification The case for diversification Over the past few years, pension schemes have faced challenging market conditions and investment performance has been mixed, leading

More information

Institutional Global Multi- Sector Bond Fund

Institutional Global Multi- Sector Bond Fund SUMMARY PROSPECTUS RPGMX October 1, 2015 T. Rowe Price Institutional Global Multi- Sector Bond Fund A bond fund seeking high income and some capital appreciation. This fund is only available to institutional

More information

ishares Edge Minimum Volatility ETFs

ishares Edge Minimum Volatility ETFs ishares Edge Minimum Volatility ETFs A new approach for the core of your portfolio Establishing an appropriate asset allocation and staying invested in the markets are important determinants of successful

More information

De-Risking Solutions: Low and Managed Volatility

De-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 information

Bond Fund of the TIAA-CREF Life Funds

Bond Fund of the TIAA-CREF Life Funds Summary Prospectus MAY 1, 2015 Bond Fund of the TIAA-CREF Life Funds Ticker: TLBDX Before you invest, you may want to review the Fund s prospectus, which contains more information about the Fund and its

More information

McKinley Capital U.S. Equity Income Prospects for Performance in a Changing Interest Rate Environment

McKinley 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 information

CMG Managed High Yield Bond Program. 2015 CMG Capital Management Group, Inc.

CMG Managed High Yield Bond Program. 2015 CMG Capital Management Group, Inc. CMG Managed High Yield Bond Program About CMG CMG is a Registered Investment Advisor located in King of Prussia, Pennsylvania founded in 1992 by Stephen Blumenthal. Since our inception, CMG has embraced

More information

BlackRock Diversa Volatility Control Index *

BlackRock Diversa Volatility Control Index * BlackRock Diversa Volatility Control Index * FOR FIXED INDEX ANNUITIES * Formally known as BlackRock ibld Diversa VC7 ER Index NOT FOR USE IN IOWA FA7363 (2-5) 02545 205 Forethought In order to protect

More information

Is It Time to Give Up on Active Management?

Is It Time to Give Up on Active Management? Is It Time to Give Up on Active Management? CFA Society of Pittsburgh 3 rd Annual Endowments and Foundations Conference May 2015 Gregory Woodard Portfolio Strategist Manning & Napier Advisors, LLC (Manning

More information

Market betas vs. alternative betas

Market betas vs. alternative betas BILL LANDES, PH.D., DEPUTY HEAD OF GLOBAL INVESTMENT SOLUTIONS 2015 PERSPECTIVES USING ALTERNATIVE BETAS TO IMPROVE PORTFOLIO DIVERSIFICATION JEFFREY KNIGHT, CFA, GLOBAL HEAD OF INVESTMENT SOLUTIONS AND

More information

Understanding the JPMorgan ETF Efficiente SM 5 Index

Understanding the JPMorgan ETF Efficiente SM 5 Index Fact Sheet Understanding the JPMorgan ETF Efficiente SM 5 Index FAM-1197 3/15 Important Information Disclaimers This document contains important information prepared by Symetra Life Insurance Company (

More information

2016 SUMMARY PROSPECTUS

2016 SUMMARY PROSPECTUS JULY 1, 2016 2016 SUMMARY PROSPECTUS ishares 20+ Year Treasury Bond ETF TLT NASDAQ Before you invest, you may want to review the Fund s prospectus, which contains more information about the Fund and its

More information

Wells Fargo Dow Jones Target 2045 Fund

Wells Fargo Dow Jones Target 2045 Fund Summary Prospectus July 1, 2016 Wells Fargo Dow Jones Target 2045 Fund Class/Ticker: Class A - WFQVX Link to Prospectus Link to SAI Before you invest, you may want to review the Fund's prospectus, which

More information

Do Hedge Funds Have An Edge Over Alternative Mutual Funds?

Do Hedge Funds Have An Edge Over Alternative Mutual Funds? May 2016 ALTERNATIVE PERSPECTIVES Do Hedge Funds Have An Edge Over Alternative Mutual Funds? The Case of Equity Long/Short Strategies Do Hedge Funds Have an Edge Over Alternative Mutual Funds? The concept

More information

Retirement Balanced Fund

Retirement 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 information

Managed Futures as a Crisis Risk Offset Strategy

Managed Futures as a Crisis Risk Offset Strategy Managed Futures as a Crisis Risk Offset Strategy SOLUTIONS & MULTI ASSET MANAGED FUTURES INVESTMENT INSIGHT OCTOBER 2016 While equity markets and other asset prices have generally retraced their declines

More information

Portfolio Presentation: Growth & Income and U.S. Diversified Equity

Portfolio Presentation: Growth & Income and U.S. Diversified Equity Portfolio Presentation: Growth & Income and U.S. Diversified Equity The above portfolios are available through the Morgan Stanley Portfolio Management program, managed by Portfolio Manager Bernard Semon

More information

Balanced Fund RPBAX. T. Rowe Price SUMMARY PROSPECTUS

Balanced 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 information

Summary Prospectus April 27, JNL Alt 65 Fund (formerly, JNL Institutional Alt 65 Fund) Class A

Summary Prospectus April 27, JNL Alt 65 Fund (formerly, JNL Institutional Alt 65 Fund) Class A Summary Prospectus April 27, 2015 JNL Alt 65 Fund (formerly, JNL Institutional Alt 65 Fund) Before you invest, you may want to review the Fund s Prospectus, which contains more information about the Fund

More information

INVESTMENT OBJECTIVE TTM U.S. CORE ETF DETAILS HIGHLIGHTS

INVESTMENT OBJECTIVE TTM U.S. CORE ETF DETAILS HIGHLIGHTS Our uncertain global economy presents a new paradigm for investing. Protecting the wealth you have accumulated is as important as growth. 1/31/2015 Markets move in recognizable trends and countertrends.

More information

Vantage 2.0 Portfolios Stop Loss Analyzed. Presented by:

Vantage 2.0 Portfolios Stop Loss Analyzed. Presented by: Vantage 2.0 Portfolios Stop Loss Analyzed Presented by: Gain a competitive edge through the science of investing. 323 Regency Ridge Drive Dayton, Ohio 45459 866.439.9093 www.beaconinvesting.com Vantage

More information

MainStay VP Janus Balanced Portfolio

MainStay 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 information

Our verdict is in: Offshore high yield exchange-traded funds don t deliver

Our verdict is in: Offshore high yield exchange-traded funds don t deliver For investment professionals only - not for use by retail investors Our verdict is in: Offshore high yield exchange-traded funds don t deliver November 2014 The explosive growth witnessed by ETFs in the

More information

SUMMARY PROSPECTUS SDIT Short-Duration Government Fund (TCSGX) Class A

SUMMARY PROSPECTUS SDIT Short-Duration Government Fund (TCSGX) Class A May 31, 2016 SUMMARY PROSPECTUS SDIT Short-Duration Government Fund (TCSGX) Class A Before you invest, you may want to review the Fund s Prospectus, which contains information about the Fund and its risks.

More information

Putnam RetirementReady Funds 11 30 07 Prospectus

Putnam RetirementReady Funds 11 30 07 Prospectus Putnam RetirementReady Funds 11 30 07 Prospectus CONTENTS Fund summaries......................2 Goals..............................2 Main investment strategies.............2 Main risks...........................5

More information

GOALS-BASED SHORT TERM PORTFOLIO Investment Policy Statement

GOALS-BASED SHORT TERM PORTFOLIO Investment Policy Statement GOALS-BASED SHORT TERM PORTFOLIO Investment Policy Statement The purpose of this document The purpose of this investment policy statement is to provide a framework for your investment plan. Through it

More information

Guide to mutual fund investing. Start with the basics

Guide to mutual fund investing. Start with the basics Guide to mutual fund investing Start with the basics Pursue your financial goals Why do you invest? For a rainy day? A secure retirement? Funding a college tuition? Having a specific goal in mind will

More information

Overview. October 2013. Investment Portfolios & Products. Approved for public distribution. Investment Advisory Services

Overview. October 2013. Investment Portfolios & Products. Approved for public distribution. Investment Advisory Services Equity Risk Management Strategy Overview Approved for public distribution October 2013 Services Portfolios & Products Equity Risk Management Strategy* Tactical allocation strategy that seeks to adjust

More information

Navellier Tactical U.S. Equity Sector Plus

Navellier Tactical U.S. Equity Sector Plus Navellier Tactical U.S. Equity Sector Plus B-063014/NCD-14-846 www.navellier.com Tactical Series 1 U.S. Equity Sector Plus Navellier Tactical U.S. Equity Sector Plus Model a hypothetical example Hypothetical

More information

Fixed-income opportunity: Short duration high yield

Fixed-income opportunity: Short duration high yield March 2014 Insights from: An income solution for a low or rising interest-rate environment Generating income is a key objective for many investors, and one that is increasingly difficult to achieve in

More information

Credit Suisse Managed Futures Strategy Fund Fund Profile

Credit Suisse Managed Futures Strategy Fund Fund Profile Credit Suisse Managed Futures Strategy Fund Fund Profile Class I: CSAIX Class A: CSAAX Class C: CSACX Investment Opportunity Alternative investment mutual fund that may: Generate returns that are uncorrelated

More information

ALTERNATIVE INVESTMENTS: MYTHS & MISCONCEPTIONS

ALTERNATIVE INVESTMENTS: MYTHS & MISCONCEPTIONS ALTERNATIVE INVESTMENTS: MYTHS & MISCONCEPTIONS Many investors mistakenly think of alternative investments as being only for ultra-high-net-worth individuals and institutions. However, due to a number

More information

Navigator Fixed Income Total Return

Navigator 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 information

Target Retirement Funds

Target 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 information

June 30, 2016 For Managed Account Use Only.

June 30, 2016 For Managed Account Use Only. VIRTUS SECTOR TREND STRATEGY June 30, 2016 VIRTUS INVESTMENT PARTNERS Business Overview Virtus is an independent, publicly traded asset management company (NASDAQ: VRTS) Disciplined, institutional-quality

More information

It s your retirement.

It s your retirement. MNDCP It s your retirement. Keep it on target. And keep it simple. 1 Click to learn more! Looking for an easier way to invest for retirement? With these three simple steps, you can save more, invest wisely

More information

PROTECTING YOUR PORTFOLIO WITH BONDS

PROTECTING YOUR PORTFOLIO WITH BONDS Your Global Investment Authority PROTECTING YOUR PORTFOLIO WITH BONDS Bond strategies for an evolving market Market uncertainty has left many investors wondering how to protect their portfolios during

More information

Trend Following and Rising Rates

Trend Following and Rising Rates Trend Following and Rising Rates Brian Hurst May 2015 Principal We examine the performance of a hypothetical Yao Hua Ooi Principal trend following strategy over the past 70 years, paying particular attention

More information

The Coming Volatility

The 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 information

Summary Prospectus April 25, 2016. JNL Institutional Alt 50 Fund Class A

Summary Prospectus April 25, 2016. JNL Institutional Alt 50 Fund Class A Summary Prospectus April 25, 2016 JNL Institutional Alt 50 Fund Before you invest, you may want to review the Fund s Prospectus, which contains more information about the Fund and its risks. You can find

More information

Timely Topics. The Benchmark Standard. May 30, 2013. Highlights. What Is a Benchmark, and Why Is It Important? LPL FINANCIAL RESEARCH

Timely Topics. The Benchmark Standard. May 30, 2013. Highlights. What Is a Benchmark, and Why Is It Important? LPL FINANCIAL RESEARCH LPL FINANCIAL RESEARCH Timely Topics May 30, 2013 The Benchmark Standard Highlights LPL Financial Research believes investors need to choose a benchmark that best reflects the investment style of their

More information

California Tax-Free Bond Fund

California Tax-Free Bond Fund SUMMARY PROSPECTUS PRXCX July 1, 2016 T. Rowe Price California Tax-Free Bond Fund A longer-term bond fund seeking income exempt from federal and California state income taxes. Before you invest, you may

More information

T. Rowe Price Target Retirement 2030 Fund Advisor Class

T. 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 information

BlackRock 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 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 information

ishares MINIMUM VOLATILITY SUITE SEEKING TO WEATHER THE MARKET S UP AND DOWNS

ishares MINIMUM VOLATILITY SUITE SEEKING TO WEATHER THE MARKET S UP AND DOWNS ishares MINIMUM VOLATILITY SUITE SEEKING TO WEATHER THE MARKET S UP AND DOWNS Table of Contents 1 Introducing the ishares Minimum Volatility Suite... 02 2 Why Consider the ishares Minimum Volatility Suite?...

More information

SUMMARY PROSPECTUS CALVERT AGGRESSIVE ALLOCATION FUND INVESTMENT OBJECTIVE FEES AND EXPENSES OF THE FUND. Example. Portfolio Turnover

SUMMARY PROSPECTUS CALVERT AGGRESSIVE ALLOCATION FUND INVESTMENT OBJECTIVE FEES AND EXPENSES OF THE FUND. Example. Portfolio Turnover SUMMARY PROSPECTUS February 1, 2016, as revised April 11, 2016 CALVERT AGGRESSIVE ALLOCATION FUND Class (Ticker): A (CAAAX) C (CAACX) Link to Prospectus (Table of Contents) Link to Statement of Additional

More information

Six strategies for volatile markets

Six strategies for volatile markets Six strategies for volatile markets When markets get choppy, it pays to have a plan for your investments, and to stick to it. by Fidelity Viewpoints 06/30/2016 No investor likes to hear that the market

More information

A: SGEAX C: SGECX I: SGEIX

A: SGEAX C: SGECX I: SGEIX A: SGEAX C: SGECX I: SGEIX NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Salient Global Equity Fund The investment objective of the Salient Global Equity Fund (the Fund ) is to seek long term capital

More information

Vanguard Institutional Target Retirement 2010 Fund

Vanguard Institutional Target Retirement 2010 Fund Vanguard Institutional Target Retirement 2010 Fund Supplement to the Prospectus Dated January 28, 2016 Reorganization of Vanguard Institutional Target Retirement 2010 Fund into Vanguard Institutional Target

More information

SUMMARY PROSPECTUS SIPT VP Conservative Strategy Fund (SVPTX) Class II

SUMMARY PROSPECTUS SIPT VP Conservative Strategy Fund (SVPTX) Class II April 30, 2016 SUMMARY PROSPECTUS SIPT VP Conservative Strategy Fund (SVPTX) Class II Before you invest, you may want to review the Fund s Prospectus, which contains information about the Fund and its

More information

Investment Policy Statement. Sample XYZ Foundation NOT FOR CLIENT USE. Approved on <<date>>

Investment Policy Statement. Sample XYZ Foundation NOT FOR CLIENT USE. Approved on <<date>> Sample XYZ Foundation Approved on By Board of Directors This investment policy statement should be reviewed and updated at least annually. Any change to this policy should be communicated in writing

More information

Capped Dual Directional Contingent Buffered Return Enhanced Notes Linked to the EURO STOXX 50 Index due January 31, 2020

Capped Dual Directional Contingent Buffered Return Enhanced Notes Linked to the EURO STOXX 50 Index due January 31, 2020 The information in this preliminary pricing supplement is not complete and may be changed. This preliminary pricing supplement is not an offer to sell nor does it seek an offer to buy these securities

More information

dividend-focused investing

dividend-focused investing Topics in... dividend-focused investing quality, dividends and portfolio application Using a quality dividend focus strategy to enhance outcomes Portfolios created through the proprietary Quality Dividend

More information

Short-Term Bond Fund

Short-Term Bond Fund SUMMARY PROSPECTUS PRWBX October 1, 2015 T. Rowe Price Short-Term Bond Fund A bond fund seeking income with minimal fluctuations in principal value through investments in shorter-term investment-grade

More information

Investors Cornerstone I Portfolio

Investors Cornerstone I Portfolio Annual Management Report of Fund Performance FOR THE PERIOD ENDED MARCH 31, 2016 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Portfolio Fund,

More information

LifePath Index 2060 Fund Q

LifePath Index 2060 Fund Q Release Date: 9-3-215 LifePath Index 26 Fund Q Standard & Poor's 5 Index LifePath Index 26 Custom Target Date 251+... Allocation of Stocks and Bonds 1 8 6 4 2 45 4 35 3 25 2 15 1 5 Years Until Retirement

More information

Nuveen Tactical Market Opportunities Fund

Nuveen Tactical Market Opportunities Fund Nuveen Tactical Market Opportunities Fund Summary Prospectus January 29, 2016 Ticker: Class A NTMAX, Class C NTMCX, Class I FGTYX This summary prospectus is designed to provide investors with key Fund

More information

Federated Mid-Cap Index Fund

Federated Mid-Cap Index Fund Summary Prospectus December 31, 2015 Share Class Institutional Service Ticker FMCRX FMDCX Federated Mid-Cap Index Fund A Portfolio of Federated Index Trust Before you invest, you may want to review the

More information

City National Rochdale High Yield Bond Fund a series of City National Rochdale Funds

City National Rochdale High Yield Bond Fund a series of City National Rochdale Funds City National Rochdale High Yield Bond Fund a series of City National Rochdale Funds SUMMARY PROSPECTUS DATED JANUARY 31, 2015, AS SUPPLEMENTED MAY 1, 2015 Class: Institutional Class Servicing Class Class

More information

Federated High Income Bond Fund II

Federated High Income Bond Fund II Summary Prospectus April 30, 2016 Share Class Primary Federated High Income Bond Fund II A Portfolio of Federated Insurance Series Before you invest, you may want to review the Fund s Prospectus, which

More information

SUPPLEMENT TO CALVERT VP NATURAL RESOURCES PORTFOLIO. Calvert Variable Products Portfolios Prospectus (Calvert VP Index Portfolios) dated May 1, 2016

SUPPLEMENT TO CALVERT VP NATURAL RESOURCES PORTFOLIO. Calvert Variable Products Portfolios Prospectus (Calvert VP Index Portfolios) dated May 1, 2016 SUPPLEMENT TO CALVERT VP NATURAL RESOURCES PORTFOLIO Calvert Variable Products Portfolios Prospectus (Calvert VP Index Portfolios) dated May 1, 2016 Calvert VP Natural Resources Portfolio Summary Prospectus

More information

Investors Growth Plus Portfolio

Investors Growth Plus Portfolio Interim Management Report of Fund Performance FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 3, 215 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Portfolio

More information

HIGH QUALITY PREMIER OUR PHILOSOPHY THE ATTRIBUTES OUR APPROACH

HIGH QUALITY PREMIER OUR PHILOSOPHY THE ATTRIBUTES OUR APPROACH HIGH QUALITY PREMIER September 30, 2015 (3Q) FACT SHEET OUR PHILOSOPHY We believe that securities with stable and predictable cash flows, and low credit and event risk produce consistent returns while

More information

Source: Bloomberg, as of December 31, Rate is a simple average of US, UK, and German 10-Year government bond rates.

Source: Bloomberg, as of December 31, Rate is a simple average of US, UK, and German 10-Year government bond rates. BLACKROCK.COM/GLSC GLOBAL LONG/SHORT CREDIT FUND For decades, declining interest rates have been the primary source of fixed income returns. Is Your Fixed Income Portfolio Diversified? } Historically Low

More information

Wells Fargo Advantage Dow Jones Target Date Funds SM

Wells 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 information

J.P. Morgan MOZAIC Index (USD) An opportunity to pursue steady growth in a variety of markets. Nationwide SummitSM fixed indexed annuity

J.P. Morgan MOZAIC Index (USD) An opportunity to pursue steady growth in a variety of markets. Nationwide SummitSM fixed indexed annuity Nationwide SummitSM fixed indexed annuity Multi-asset index guide J.P. Morgan MOZAIC Index (USD) SM An opportunity to pursue steady growth in a variety of markets A powerful combination for retirement

More information

Market Linked Certificates of Deposit

Market Linked Certificates of Deposit Market Linked Certificates of Deposit This material was prepared by Wells Fargo Securities, LLC, a registered brokerdealer and separate non-bank affiliate of Wells Fargo & Company. This material is not

More information

Lenwood Volatility Control Index

Lenwood Volatility Control Index Lenwood Volatility Control Index Index Highlights The Index Methodologies, LLC Lenwood Volatility Control Index TM (LVCI) is a rules-based index that is comprised of six underlying indices three equity

More information

Making Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor. October, 2008

Making Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor. October, 2008 Making Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor October, 2008 1 Market Ups and Downs Recent news is full of anxiety-causing developments: Credit crunch Bank

More information

Japanese bonds in a negative interest rate environment

Japanese bonds in a negative interest rate environment Japanese bonds in a negative interest rate environment On January 29, 2016, the Bank of Japan (BoJ) introduced "Quantitative and Qualitative Monetary Easing with Negative Interest Rate". The decision initiated

More information

Macro Risk Indicator: Our Approach to Managing Risk

Macro Risk Indicator: Our Approach to Managing Risk Macro Risk Indicator: Our Approach to Managing Risk We are commonly asked about the method we use to tilt our Dynamic Asset Allocation (DAA) portfolios between an offensive or defensive stance. Based upon

More information

Fixed Income: The Hidden Risk of Indexing

Fixed Income: The Hidden Risk of Indexing MANNING & NAPIER ADVISORS, INC. Fixed Income: The Hidden Risk of Indexing Unless otherwise noted, all figures are based in USD. Fixed income markets in the U.S. are vast. At roughly twice the size of domestic

More information

Investing in Alternatives. Help optimize your portfolio with non-traditional solutions.

Investing in Alternatives. Help optimize your portfolio with non-traditional solutions. Investing in Alternatives. Help optimize your portfolio with non-traditional solutions. Eagle Strategies LLC is an investment adviser registered with the Securities and Exchange Commission and is notice

More information

The timeless (and timely) case for high-yield bonds

The timeless (and timely) case for high-yield bonds EATON VANCE TOPIC PAPER MAY 2016 The timeless (and timely) case for high-yield bonds Michael Weilheimer, CFA Director High-Yield Investments Steve Concannon Portfolio Manager High-Yield Investments Jeff

More information

J.P. Morgan Equity Risk Premium Multi-Factor (Long Only) Index Series

J.P. Morgan Equity Risk Premium Multi-Factor (Long Only) Index Series J.P. Morgan Equity Risk Premium Multi-Factor (Long Only) Index Series QUESTIONS AND ANSWERS These Questions and Answers highlight selected information to help you better understand: 1. JPERPLMF: J.P. Morgan

More information

Time to Invest in Short-Term Bonds?

Time to Invest in Short-Term Bonds? First Quarter 2010 Time to Invest in Short-Term Bonds? Executive Summary This paper outlines why now may be an opportune time to invest in short-term bonds. We believe short-term bonds offer: Less downside

More information

bond investing Topics in... DON T BE AFRAID OF BOND FUNDS IN A RISING RATE ENVIRONMENT

bond investing Topics in... DON T BE AFRAID OF BOND FUNDS IN A RISING RATE ENVIRONMENT Topics in... bond investing DON T BE AFRAID OF BOND FUNDS IN A RISING RATE ENVIRONMENT Investors in actively managed bond funds can be rewarded for patience Many investors neither understand the math underlying

More information

SEI s Approach to Asset Allocation

SEI s Approach to Asset Allocation SEI s Approach to Asset Allocation Presented by: Jim Smigiel Managing Director and Portfolio Manager Portfolio Strategies Group What is diversification? Sharpe ratio? Peak Sharpe Ratio Loss of efficiency:

More information

Black Box Trend Following Lifting the Veil

Black Box Trend Following Lifting the Veil AlphaQuest CTA Research Series #1 The goal of this research series is to demystify specific black box CTA trend following strategies and to analyze their characteristics both as a stand-alone product as

More information

ADVANCED SERIES TRUST

ADVANCED SERIES TRUST ADVANCED SERIES TRUST PROSPECTUS APRIL 27, 2015 The Trust is an investment vehicle for life insurance companies ( Participating Insurance Companies ) writing variable annuity contracts and variable life

More information

Non-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 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 information

Counsel High Yield Fixed Income

Counsel High Yield Fixed Income Counsel High Yield Fixed Income annual management report of fund performance For the year ended March 31, 15 Fund Manager Counsel Portfolio Services Inc. This Annual Management Report of Fund Performance

More information

Spectrum Growth Fund Spectrum Income Fund Spectrum International Fund

Spectrum Growth Fund Spectrum Income Fund Spectrum International Fund PROSPECTUS PRSGX RPSIX PSILX T. Rowe Price Spectrum Growth Fund Spectrum Income Fund Spectrum International Fund May 1, 2016 Three broadly diversified growth, income, and international funds that invest

More information

Implementing Point and Figure RS Signals

Implementing Point and Figure RS Signals Dorsey Wright Money Management 790 E. Colorado Blvd, Suite 808 Pasadena, CA 91101 626-535-0630 John Lewis, CMT August, 2014 Implementing Point and Figure RS Signals Relative Strength, also known as Momentum,

More information

Alternative Sector Rotation Strategy

Alternative Sector Rotation Strategy Alternative Sector Rotation Strategy Alternative Sector Rotation Strategy INVESTMENT OBJECTIVE: Seeks long term growth of capital by investing in alternative asset classes as a way to compliment a traditional

More information

TIAA-CREF S&P 500 Index Fund of the TIAA-CREF Funds

TIAA-CREF S&P 500 Index Fund of the TIAA-CREF Funds Summary Prospectus MARCH 1, 2016 TIAA-CREF S&P 500 Index Fund of the TIAA-CREF Funds : Institutional Advisor Retirement Ticker: TISPX TISAX TRSPX Before you invest, you may want to review the Fund s prospectus,

More information

The Case for Treasury Inflation Protected Securities Funds

The Case for Treasury Inflation Protected Securities Funds The Case for Treasury Inflation Protected Securities Funds A white paper from HARTFORD INVESTMENT MANAGEMENT COMPANY Introduction Page 2 of 2 Diversification is a sound investment strategy in any economic

More information

DSIP List (Diversified Stock Income Plan)

DSIP List (Diversified Stock Income Plan) Kent A. Newcomb, CFA, Equity Sector Analyst Joseph E. Buffa, Equity Sector Analyst DSIP List (Diversified Stock Income Plan) Commentary from ASG's Equity Sector Analysts January 2014 Concept Review The

More information

SUMMARY PROSPECTUS. TCW High Yield Bond Fund FEBRUARY 29 I SHARE: TGHYX N SHARE: TGHNX

SUMMARY PROSPECTUS. TCW High Yield Bond Fund FEBRUARY 29 I SHARE: TGHYX N SHARE: TGHNX TCW High Yield Bond Fund I SHARE: TGHYX N SHARE: TGHNX 20 6 FEBRUARY 29 SUMMARY PROSPECTUS Before you invest, you may want to review the Fund s Prospectus which contain more information about the Fund

More information

SPDR S&P 400 Mid Cap Value ETF

SPDR 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 information

The essentials of investing for retirement.

The essentials of investing for retirement. The essentials of investing for retirement. Fidelity has been helping people invest for retirement for more than 65 years. Some investors use our actively managed and index mutual funds. Some use our powerful

More information