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Results shown are based on index simulations of Holland allocations
for periods indicated. While they are representative of the Advisor's personal investment performance over these periods, they do not represent returns for The Holland Portfolios per se, as the Portfolios were not available in their current form over these periods.
Results are from financial data believed to be reliable, not guaranteed. All returns are shown net of the .625% annual management fee payable to Holland. The returns do not include any rebalance fees (from Fidelity), which would reduce the performance
by approximately $350 per year. Returns assume all distributions are reinvested.
The models shown comprise the following:
Aggressive is 92.5% US/Global diversified equities with a cash/money market balance of 7.5%. Aggressive is recommended for people with a time frame of 10+ years.
Neutral is 85% US/Global diversified equities with 7.5% in cash/money market and 7.5% in US long bonds. Neutral is recommended for individuals with a time
frame of 8+ years.
Conservative is 70% US/Global diversified equities with 15% in cash/money market and 15% in US long bonds. Conservative is recommended for people with
a time frame of 6+ years.
Balanced is 50% US/Global equities with 25% in cash/money market and
25% in US long bonds. Balanced is recommended for people with a time frame of 4+ years.
The returns shown are not predictive of actual results in future periods. Current and future results may be lower or higher. Portfolio prices can fluctuate materially. Investors may lose money; investing for short periods increases risk.
Portfolios are not FDIC insured, nor are they deposits of or guaranteed by a
bank or any other entity.
Portions of these portfolios are invested in funds that trade international equities, International investments are subject to additional risks such as currency fluctuation, political instability, lack of market regulation and potential for illiquid markets.
Mid cap/Small cap investments are subject to greater volatility than those in
other categories.
Investors should carefully consider the investment objectives, risks, fees and expenses of each portfolio before investing. Past performance is no guarantee of future investment results.
The S & P 500 is an unmanaged, capitalization-weighted index composed of 500 widely held common stocks listed on the New York Exchange, the American Stock Exchange, and over the counter market.
Jeffery Jacob Holland Investments, LLC is an investment advisor registered with the Illinois Department of Securities.
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How to evaluate your returns, apple by apple
For many investors who study the daily financial sections,
the columns marked YTD %RET or 3-YR %RET, and so on,
are the Rosetta stones of portfolio performance. It would
seem raw returns tell the story, for better or worse.
But professionals know that accurately evaluating
performance involves much more than looking at how
much you started with … and how much you've got now.
For example: how much did your returns cost you in
terms of fees? (See our article on Fees.) Sales charges,
trading commissions and fees can take a hefty bite
directly from your bottom line – not reflected in the
returns column.
Investors also should consider portfolio relativity. Don't
worry, we're not talking about Einstein here, just a
straightforward process of making sure you compare
apples to apples, instead of tangerines.
This is where market benchmarks come in.
Without a comparison or benchmark, absolute returns
would be utterly meaningless. If you have no idea how
anyone else's similar-style investments are doing, how
can you know whether your own returns are relatively
good, mediocre or even abysmal? The key is to evaluate
similar-style investments. If you own a broadly-allocated
portfolio, with perhaps a dozen differently-weighted
asset classes, then it hardly makes sense to compare
your returns against an energy equities fund – or for that
matter any individual stock or stock sector.
Thus portfolio performance is relative. By comparing
your performance against a relevant market index you
can accurately judge whether you are doing better than
most, about the same, etc., as others in the same
category (i.e., aggressive, balanced or conservative).
In the case of Holland Portfolios, considering
their very broadly diversified composition, the most
relevant index-benchmark is the widely accepted
Standard and Poor's 500. This market-weighted index
tracks the combined performance of 500 leading
companies across virtually every sector of American
enterprise.
The vast majority of investment professionals consider
the S & P 500, and not the oft-quoted Dow 30, the most
timely and accurate reflection of where the United States
stock market stands.
Finally, it's worth mentioning one other apples-to-
tangerines misperception in evaluating returns – this
relates to time horizons. Individual investors' time
horizons are correlated to human life span, obviously.
But enormous pension funds and institutions are, so to
speak, immortal. They have potentially infinite
investment time horizons, far longer than even the life
spans of their managers.
For this reason, the "Big Money" endowments and funds
often engage in exotic, exceedingly risky or long-term
strategies which no reputable Advisor would ever
recommend for an individual.
So don't succumb to "portfolio envy." While it can be
instructive and useful to study the performance of such
perennial powerhouses as the Yale Endowment
Fund, keep in mind the admonition from its manager:
"Don't try this at home."
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