Measuring Performance in Real Dollars
The power of the real dollar approach can be seen in a simple analysis. Take a family with $100 million of financial assets. The family has the dual objectives of using the capital to fund its current spending requirements and ensuring they pass on significant wealth to future generations, for their benefit. The family always has the option of investing the assets in a broadly diversified portfolio of passive investments that seeks to match the risk and return of a Balanced Portfolio.
Full Market Cycle - The period between either the two latest highs or lows of a market, such as the S&P 500, showing net performance through both an up and a down market.
Based on an initial investment of $100M. This is a hypothetical example used for illustrative purposes only. Past performance is not necessarily indicative of future results. The GenSpring Approach is represented by the returns of the GenSpring Client Composite for the period indicated. The GenSpring Client Composite is a consolidation of all fee paying client accounts over which GenSpring exercises discretion. These accounts encompass a range of investment objectives. The GenSpring Client Composite is not a managed portfolio strategy and it is not possible to invest in the Composite. The GenSpring Client Composite performance shown on this page is net of GenSpring and sub-advisor management fees and other expenses. All performance includes reinvestment of dividends and other earnings and is presented on an annualized basis. Please refer to the additional disclosures and information accompanying this presentation.
Additional Information and Disclosures
Past performance is no guarantee of future results. All investments contain a risk of loss of principal.
The “Balanced Portfolio” is a hypothetical portfolio comprised of 50% S&P 500 Index, 25% Lehman Brothers Aggregate Bond Index, 20% Lehman Brothers Muni Bond Index and 5% 91 day Treasury Bill. It is not possible to invest in an index. The S&P 500 Index consists of 500 widely held common stocks, consisting of four broad sectors (industrials, utilities, financial and transportation). It is a market-value weighted index (stock price times shares outstanding), with each stock affecting the index in proportion to its market value. This index is a total return index with dividends reinvested. The Lehman Brothers Aggregate Bond Index is composed of U.S. investment grade fixed rate bonds, including government and credit securities, agency mortgage pass through securities, asset backed securities, and commercial mortgage-based securities. The Lehman Brothers 5 Year Municipal Bond Index is composed of state and local general obligation bonds, revenue bonds and insured bonds. The valuation and performance information presented for the indices is available from public sources. GenSpring makes no representation as to its accuracy.
The “GenSpring Approach” is represented by a hypothetical investment in the GenSpring Client Composite. It is not possible to invest in the Composite. The GenSpring Client Composite is a consolidation of all fee paying clients over which GenSpring exercises discretion. These accounts encompass a range of investment objectives. The GenSpring Client Composite is not a managed portfolio strategy. The performance referenced in this example is net of GenSpring and sub-advisor management fees and other expenses and includes reinvestment of dividends and other earnings. This data is unaudited. Comparisons between a composite and an index or benchmark are unreliable as performance indicators and should not be considered indicative of the actual performance to be achieved in a particular managed account. The GenSpring Client Composite contains, in addition to equities and fixed income securities, investments in private equity, venture capital, real estate, and hedge funds and other alternative investments that may not be included in the indices comprising the Balanced Portfolio.
Full Market Cycle - The period between either the two latest highs or lows of a market, such as the S&P 500, showing net performance through both an up and a down market.
The information contained herein is neither an offer to sell nor a solicitation of an offer to purchase any securities. Such an offer will only be made to qualified investors by means of a private placement memorandum and related subscription documents.