Latest AssetBuilder Model Portfolio Returns
is a representation of the risk associated
with a given security (stocks, bonds, etc.), or the risk of a portfolio of securities.
Risk is an important factor in determining how to efficiently manage a portfolio
of investments because it determines the variation in returns on the asset and/or
portfolio and gives investors a mathematical basis for investment decisions. The
overall concept of risk is that as it increases, the expected return on the asset
will increase as a result of the risk premium earned – in other words, investors
should expect a higher return on an investment when said investment carries a higher
level of risk.
The AssetBuilder (AB) constructed portfolios – Model Portfolios – have been developed based on historical performance of the standard asset classes (stocks, bonds and cash) and of representative market index fund measures. Since this is a Model Portfolio (hypothetical), there can be no assurance that an AB client would have achieved similar rates of return over the time frame. In addition, since the time period in question is a historical one, there can be no assurance that future results achieved by AB clients will in any way resemble those represented by the Model Portfolios.
The Performance Table above is representative of a compilation of the selected funds to achieve a probabilistic return for a measured level of risk (standard deviation). Model Portfolios shown are rebalanced ever year on May 1. All performance data is total returns which includes interest and dividends. The DFA growth funds (DUSLX, DSCGX, DISMX) measure uses actual returns starting in January 2013. To gain additional history, appropriate DFA indexes were appended back in time from January 2013. Each historical index used was net of fees; DUSLX—24 basis opints (0.24%), DSCGX—43 basis points (0.43%), DISMX—63 basis points (0.63%). The returns are net AB’s advisory fee and Schwab transaction fee of 70 basis points (0.70%) per year. Calculation based on average fee impact on $50,000 invested in AB Model Portfolio 08 rebalanced annually for 5 years.
Although we have done our best to present this information fairly, hypothetical performance is still potentially misleading. Hypothetical data does not represent actual performance and should not be interpreted as an indication of actual performance. This data is based on transactions that were not made. Instead, the trades were simulated, based on knowledge that was available only after the fact and thus with the benefit of hindsight. Results do not include the impact of taxes, if any. Past Returns are not indicative of future results.
These materials are subject to change without notice and, due to the rapidly changing nature of the security markets, may quickly become outdated. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.
AssetBuilder Inc. is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and expenses carefully before investing.