1 / 14

ASSET MANAGEMENT PROGRAM

ASSET MANAGEMENT PROGRAM. Investment Advisory Services Provided Through Partnervest Advisory Services LLC. Washington Investment Management Professional Relationship Diagram We Work As Your Investment Management Professional With. Compliance. CLIENT RELATIONSHIP STRUCTURE.

Melvin
Télécharger la présentation

ASSET MANAGEMENT PROGRAM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ASSET MANAGEMENT PROGRAM Investment Advisory Services Provided Through Partnervest Advisory Services LLC

  2. Washington Investment ManagementProfessional Relationship DiagramWe Work As Your Investment Management Professional With Compliance

  3. CLIENTRELATIONSHIP STRUCTURE

  4. Washington Investment Management PhilosophyThe primary philosophy of the WIM Asset Management Program is to: • Understand the client’s investment objective and time horizon. • Identify / quantify risk in the clients’ portfolio • Analyze & determine the optimal mix of assets classes & investment styles in order to achieve the client’s investment objectives within his/her risk parameters. • Monitor & rebalance the client’s portfolio as the investment environment, the client’s objective and / or risk profile change. Our challenge is to read the markets ongoing relationship to developments as they occur and invest in asset classes that will prosper as the evolution of these events continue.

  5. Our Professional services offer a unique departure from Traditional brokerage or commissioned tactics that fail to meetClient expectations.This is achieved through: • Proper Asset Selection • Diversification • Reallocation • Low Cost No-Load / Institutional Class Funds • Low Cost Third Party Custodian Charges • Full Time Account Monitoring • Ongoing Analysis Our concept is to maintain well diversified portfolios that reduce the negative effects of too much risk and maximize the positive results of controlled volatility. Diversification through asset allocation is not a guarantee of positive returns. Investment Advisory Services through Partnervest Advisory Services LLC

  6. How Do We Measure Up?Washington Investment Management Offers Return InformationAs Measured Against The S&P 500 & Weight Adjusted Benchmarks We Manage Risk Utilizing 3 Portfolios…WIMFlexible, RGI Income Strategy and… WIM Flexible: ACCOUNT DESCRIPTION Manager will utilize an allocation in mutual funds to include but not limited to equities, bonds, exchange traded funds, closed end funds and money market funds. Manager may overweight particular investments that look attractive for capital gain purposes. Capital preservation & capital gain are the primary objectives. Income is a secondary consideration.

  7. WIM TOTAL RETURN PORTFOLIO WIM Total Return Account Description: Washington Investment Management will select investments for the portfolio from a broad universe of mutual funds thatincludes equities, bonds, exchange traded funds, closed end funds and money market funds. Manager will look for transitory imbalances between relative returns of different asset classes. Shifts between asset classes are usually done over longer periods of time & in smaller increments. Emphasis is placed on capital preservation and income. Capital gain, although an important consideration is not primary. This portfolio is suitable as a core holding. *RGI Income Strategy:  The RGI Income Strategy offers investors access to a portfolio of closed-end (ETF’s) and open-end income producing mutual funds. Using manager’s proprietary quantitative analysis, clients will have access to a diverse universe of income producing investmentsthat can be tailored to their income needs, tax efficiencies and risk level. Investors seeking total return with an emphasis on current income and a longer term investment horizon may find the RGI Income Strategy an appropriate investment. Performance data currently unavailable.

  8. Performance Data through 3/31/2005

  9. WHAT ABOUT RISK?Washington Investment Management’s Goal is to Seek High Return on Assets With Low Volatility in Each Account. (WIM FLEXIBLE ACCT. DATA) SCATTERGRAM A scatter gram is a graphical representation of a manager’s risk/return profile within a peer group or related database – typically over a 5- or 10-year time period. Crosshairs depicts appropriate comparative index. SHARPE RATIO This statistic is a commonly used measure of risk-adjusted return. It is calculated by subtracting the Risk-Free Return (usually three-month Treasury bill) from the portfolio return and dividing the resulting excess return by the portfolio’s total risk level (standard deviation). The result is a measure of return gained per unit of total risk taken. The higher the Sharpe ratio, the better the fund’s historical risk-adjusted performance.

  10. ALPHAThis statistic measures a portfolio’s return in excess of the market’s return adjusted for risk. It is a measure of the manager’s contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk taken for that level of market exposure. Alpha = Mean of excess returns of portfolio – mean of excess returns of indexBETABeta is a statistical measure of the volatility, or sensitivity, of rates of return on a portfolio or security in comparison to a market index. The beta value measures the expected change in return per one percent change in the return on the market. Thus, a portfolio with a beta of 1.1 would move 10 percent or more than the market.R-SQUAREDFormally called the coefficient of determination, this measures the overall strength or explanatory, power of a statistical relationship. In general, a higher R2 means a stronger statistical relationship between the variables that have been estimated, and therefore more confidence in using the estimation for decision making. WIM Total Return Data SHARPE RATIO This statistic is a commonly used measure of risk-adjusted return. It is calculated by subtracting the Risk-Free Return (usually three-month Treasury bill) from the portfolio return and dividing the resulting excess return by the portfolio’s total risk level (standard deviation). The result is a measure of return gained per unit of total risk taken. The higher the Sharpe ratio, the better the fund’s historical risk-adjusted performance. STANDARD DEVIATION Standard deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher the standard deviations of returns, and the higher the portfolio risk. The returns are normally distributed (i.e., have a bell-shaped curve distribution) then approximately 2/3 of the returns would occur within plus or minus one standard deviation from the sample mean.

  11. The above charts contain returns for periods of time, prior to May 2004, for which the portfolio was not in existence. These hypothetical model portfolios which are illustrative of how the quantitative model as currently structured might have performed had it been in existence at the time. It is not a description of actual historical performance, and specific recommendations could have and may vary among clients based upon different material market conditions and client circumstances. Model presentations are inherently limited in their ability to indicate future performance and benefit from hindsight. In addition, stated model returns include reinvestment of dividends and other earnings. Thus, model returns are not indicative of the allocation or returns that an actual managed account in the future will achieve. Benchmark indices chosen by us are believed to closely relate to the portfolio, however there may be other benchmarks which may more closely relate. Investors cannot invest in an index and fees for investing in unmanaged index funds may be significantly less than those fees paid for a managed account. Presentation of portfolio returns since May 2004 are based upon returns of the funds during the relevant period of time but do not reflect clients’ actual account returns but which are not believed to be materially different than those presented. All performance is net of the investment advisor’s fee, transaction costs and other material fees but does not include deduction of custodial fees. Past performance is not indicative of future returns and there is a risk of loss of principal as well as gain. Graphs and charts alone should not be the basis of any investment decision. An investor should read the prospectus for any investment prior to investing. A more detailed description of the investment advisor and its approach are available in the advisor’s Form ADV Part II which is provided herewith (if this is the first solicitation) or otherwise available by request by contacting Partnervest Advisory Services LLC, Attn: Compliance Dept., 203 Chapala St., Suite A, Santa Barbara, CA 93101, (805) 966-1266.

  12. THE STRATEGY OF DIVERSIFICATION Single Security Stock, Bond, Option HIGH RISK Higher returns Higher losses Stocks Only Large, Mid, Small Cap Value Stocks Plus Bonds High Yield, Convertible, Corporate Stocks, Bonds, Foreign Stocks, Foreign Government and Corporate bonds U.S. STOCKS, FOREIGN STOCKS, FOREIGN BONDS EMERGING MARKET STOCKS , BONDS, COMMODITIES, INFLATION INDEXED BONDS HIGH YEILD BONDS, GOLD, SHORT POSITION, REAL ESTATE, U.S. BONDS *SWEET SPOT* LOWER RETURN Limited Losses Lower Risk Short Term Treasuries, T-Bills, Money Market, Bank CD’s, Fixed Annuities

  13. WHY USE AN ASSET MANAGER? “A PERSON’S TOLERANCE TO RISK IS ONLY MEANINGFUL TO THE EXTENT THEY UNDERSTAND WHAT RISK THEY ARE TAKING.” • ControlPortfolio Risk and / or Volatility(Risk Drag) • Hedging Through Diversification • Opportunity Access to Global Markets • AllocationBalanced Allocation of Your Portfolio • BalanceNo Overweighting in One Asset Class • IncomeWide variety of Income Investments used • ProfessionalMaintenance of Portfolio • Processutilizing Strategic and Tactical Analysis

  14. Great Minds Think Alike “Investors cannot forgo asset management. They cannot put asset allocation on autopilot; it should be based on thoughtful, well reasoned analysis. Asset Allocation must be Managed.” ROBERT ARNOTT, EDITOR FINANCIAL ANALYST JOURNAL “Asset Allocation has many moving parts and requires ongoing management. Asset Allocation is the Single Most Important Factor of a portfolio’s performance, and can account for over 90% of a portfolio’s performance.” BRINSON ASSOCIATES 1991 STUDY “We feel a Manager’s Duty is to seek out investment opportunities Away From the Typical Mix of Stocks and Bonds.” ROBERT ARNOTT, EDITOR FINANCIAL ANALYST JOURNAL “EVERYBODY has a plan…until they get HIT.” MIKE TYSON, FORMER HEAVYWEIGHT CHAMPION

More Related