Model portfolio software for managing small investment portfolios.

Investment Management Modeling

Assuming You Charge Your Clients "High" Investment Advisory Fees

Main Asset Allocation Page Main Model Portfolio Page

This page is not for individual investors, because they wouldn't pay these money manager fees that an adviser would charge.

Below are the actual returns for the same Model Portfolios assuming total annual investment management fees and trading expenses are 1.5%, which is considered high. These are not the mutual fund management fees (nor 12b-1s). They're the fees you as an investment advisor would charge your clients annually.

Investment management fees are assumed to be deducted from the cash account on the first trading day of every new quarter. For example, if the total annual fee is 1.5%, then 0.375% of the account's balance on the last trading day of the previous quarter, is deducted from cash. There is no cash in the Aggressive Investment Model, so some of the bond fund is sold to pay fees.

These returns are not "hypothetical" as they are shown in the "demo." These are the actual returns from inception (January 1999) showing the returns as if you initially bought all of the investment vehicles in the exact amounts, on the first trading day, the trades all magically settled the same day, all distributions were reinvested, they never made another trade other than the quarterly rebalancing and investment switches that occurred in the master model (and all of these trades settled on the same day), never put new money in, never paid taxes on it, and never redeemed shares.

You'll receive the spreadsheet showing all mutual fund switches and return data (so you can audit them yourself) when you purchase the Asset Allocation Model. These three Excel spreadsheets are called Linked Model Returns.xlsx. Input your assumed annual investment management fees, and assumed annual trading costs, into the far left sheet of the Fee-Based Model, and all of the returns are automatically adjusted.

The most Real World thing to do (when just on this page) is compare the Moderate or Aggressive Model (or the Fee-Based Moderate Model Portfolio when markets are down) with the S&P 500. The longer the time frame, the more meaningful the comparisons, and the more pronounced the benefits of asset allocation are.

Returns assuming no annual management fees

Returns assuming 0.5% annual management fees (low)

Returns assuming 1.0% annual management fees (average)

Table of returns for the No-Load mutual fund Model (for investors mostly)

Table of returns for the Load Model (for advisors working on a commission basis)

Table of asset class returns showing negative correlation coefficients of asset allocation

You can hire us to manage your money according to any of our Models and/or Asset Allocation Software for a flat $250 a month fee.

Time Frames Conservative Model Moderately Conservative Model Moderate Model Moderately Aggressive Model Aggressive Model DJIA S&P 500 NASDAQ Russell 2000 MSCI EAFE Barclays & S&P US Aggregate Bond
1999 24.12% 35.35% 46.67% 62.41% 89.94% 25.22% 19.53% 85.59% 21.26% 27.30% -0.83%
2000 2.32% -3.64% -9.44% -11.29% -13.56% -6.18% -10.14% -39.29% -3.02% -13.96% 11.63%
2001 -1.66% -4.50% -5.32% -6.74% -7.70% -7.10% -13.04% -21.05% 2.49% -21.21% 8.42%
2002 -1.54% -7.42% -14.03% -19.93% -24.79% -16.76% -23.37% -31.53% -21.58% -17.52% 10.27%
2003 18.18% 25.46% 29.68% 32.28% 32.65% 28.28% 28.68% 29.28% 47.25% 17.41% 4.11%
2004 9.94% 11.94% 13.11% 14.07% 13.40% 5.32% 10.87% 8.59% 18.33% 10.18% 4.34%
2005 8.23% 9.99% 11.43% 12.51% 12.14% 1.72% 4.91% 1.37% 4.55% 25.96% 2.43%
2006 9.26% 11.26% 13.13% 14.13% 14.33% 19.05% 15.79% 9.52% 18.37% 13.81% 4.33%
2007 11.80% 15.18% 16.92% 18.16% 17.90% 8.89% 5.49% 9.81% -1.57% 11.17% 6.97%
2008 -11.84% -22.35% -28.86% -34.95% -38.18% -31.93% -37.00% -40.54% -33.79% -45.09% 5.24%
2009 16.07% 21.62% 26.58% 31.56% 36.13% 22.68% 26.46% 43.89% 27.17% 27.75% 5.93%
2010 8.70% 11.51% 12.63% 14.77% 16.03% 14.06% 15.06% 16.91% 26.86% 4.90% 6.54%
2011 0.79% 0.29% -2.43% -4.18% -5.46% 8.38% 2.11% -1.80% -4.18% -12.14% 7.84%
2013 6.08% 15.04% 20.77% 25.70% 30.40% 29.65% 32.39% 38.32% 38.82% 29.65% -2.02%
2014 1.00% 1.46% 1.99% 1.88% 2.14% 10.04% 13.69% 13.40% 4.89% -4.90% 5.97%
2015 -1.83% -3.21% -3.24% -3.70% -3.32% 0.21% 1.38% 5.73% -4.41% -0.81% 0.55%
2016 2.77% 4.13% 3.79% 3.84% 3.56% 3.44% 11.96% 7.50% 21.31% 1.00% 2.33%
The Month of January '17 0.64% 1.01% 1.71% 2.20% 3.04% 0.62% 1.90% 4.30% 0.39% 2.90% 0.23%
Year-to-date (31 Dec '16 to 31 January '17) 0.64% 1.01% 1.71% 2.20% 3.04% 0.62% 1.90% 4.30% 0.39% 2.90% 0.23%
Last 12 Months 4.83% 8.33% 11.20% 14.00% 16.33% 23.89% 20.04% 21.69% 33.53% 12.03% -0.85%
Last 3 Years Annualized Average 1.11% 1.69% 2.09% 2.26% 2.48% 10.88% 10.85% 11.01% 7.89% 0.71% 1.91%
Last 5 Years Annualized Average 2.70% 4.83% 6.27% 7.29% 8.43% 12.28% 14.09% 14.82% 13.00% 6.04% 1.17%
Last 10 Years Annualized Average 3.64% 4.45% 4.75% 4.96% 5.40% 7.43% 6.99% 8.59% 6.93% 0.97% 4.01%
Last 15 Years Annualized Average 5.42% 6.39% 6.68% 6.71% 6.52% 7.39% 6.93% 7.36% 8.59% 5.87% 4.16%
Annual Average Since Inception (31 Dec '98 - monthly compounding) 6.00% 6.81% 7.09% 7.48% 7.80% 6.83% 5.45% 5.34% 8.12% 3.64% 4.43%
Conservative Model Moderately Conservative Model Moderate Model Moderately Aggressive Model Aggressive Model DJIA S&P 500% NASDAQ Russell 2000 MSCI EAFE Barclays & S&P US Aggregate Bond

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