understanding how our models respond to market...
TRANSCRIPT
Chris Featherstone, CFP®, ChFC
Jeff MullenAndrew Barfoot
t: 206.623.6722
e: [email protected] w: MADISONPARKCA.COM
Understanding how our models respond to market risk
ULTRA CONSERVATIVE
AGGRESSIVE GROWTH
Investing Within the Bounds of a Client’s Risk Tolerance
RISK
1RISK
39RISK
40RISK
57RISK
58RISK
68RISK
69RISK
80RISK
81RISK
99
BALANCED
RISK
85RISK
74RISK
63RISK
46RISK
29
When you complete the Riskalyze analysis, a “risk score” will be generated to reflect your personal risk tolerance level. Taken together with informaiton from your financial plan, this score allows us to assign your account to one of five risk-adjusted investment models ranging from ‘Ultra Conservative’ to ‘Aggressive Growth’ (most of our clients fall somewhere in between). Your account will be assigned based on the bands represented above, which were developed by analyzing historical data about the risk levels of our models across multiple market cycles.
The following pages explain how our models respond to risk, and can move in and out of these historical bands to protect downside volalitity and capture upside opportunity.
The following data shows how Madison Park Capital Advisors’ proprietary and disciplined investment models have historically responded ahead of and following major changes in market conditions. Utilizing relative strength methodology, our models have been able to anticipate and respond to these significant changes in the markets, helping to limit downside risk and maximize risk-adjusted returns within the bounds of our clients’ individual risk tolerance.
- Profile -CONSERVATIVE
Sam
ple:
May
201
5
47
36
10
48
62 60 60 59
51
54 54
60 59
54 52
56
51
CONSERVATI VE PROFI LE -RI SKALYZE NUMBERS
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Dec
-09
Jun-
10
Dec
-10
Jun-
11
Dec
-11
Jun -
12
Dec
-12
Jun-
13
Dec
-13
Jun-
14
Dec
-14
Jun-
15
Dec
-15
95% PROBABILITY RANGE
Potential Annual Return Downside Upside
All numbers as of the 1st day of each specified month.
Sam
ple:
May
201
5
- Profile -balanced
68
57
26
61
75 72 72 73 72 73 73 73 72
67 64
70 73
BALANCED PROFI LE -RI SKALYZE NUMBERS
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Dec
-09
Jun-
10
Dec
-10
Jun-
11
Dec
-11
Jun -
12
Dec
-12
Jun-
13
Dec
-13
Jun-
14
Dec
-14
Jun-
15
Dec
-15
95% PROBABILITY RANGE
Potential Annual Return Downside Upside
All numbers as of the 1st day of each specified month.
Sam
ple:
May
201
5
- Profile -growth
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Dec
-07
Jun-
08
Dec
-08
Jun-
09
Dec
-09
Jun-
10
Dec
-10
Jun-
11
Dec
-11
Jun-
12
Dec
-12
Jun-
13
Dec
-13
Jun-
14
Dec
-14
Jun-
15
Dec
-15
95% PROBABILITY RANGE
Potential Annual Return Downside Upside
76
59
29
75
81 78 78 78 78 78 79 79 78
71 68
75
80
GROWTH PROFI LE -RI SKALYZE NUMBERS
All numbers as of the 1st day of each specified month.
ConservativeBalanced
Growth
0
10
20
30
40
50
60
70
80
90
Comparing Riskalyze Risk Numbers of Different Portfolios
Conservative Balanced Growth
All numbers as of the 1st day of each specified month.
MODELING UNDER DIFFERING MARKET OUTLOOKS
UNDERSTANDING POTENTIAL RETURNS
UNDERSTANDING DIVIDEND YIELDS & EXPENSE RATIOS
The Risk/Reward Heatmap quickly shows you the relative risk and reward that investment choices are adding to the portfolio you’re viewing, and is also a great way to quickly glance at the un-derlying data Riskalyze is using to pro-duce the overall risk analytics.
By selecting the Risk/Reward Heatmap view, you can see a visual representation of the potential risk (red bar), potential return (green bar) and the amount of risk that is diversified out by inverse correlations (gold bar), given the data model selected.
risk/reward heatmaps
This report includes data deemed to be from reliable sources and verified for accuracy. Madison Park Capital Advisors makes all reasonable efforts to verify that data is correct and that the information provided in this report is accurate. Information displayed is in accordance with industry standards and best practices.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted, and numbers may reflect small variances due to rounding. Investment returns are reported net of all fees, including but not limited to investment advisory fees, internal management fees for mutual funds and exchange traded funds and custodial charges.
DISCLAIMER
Version 2.0 © 2015-2016 Madison Park Capital Advisors, LLC. All rights reserved. Trademarks belong to their respective owners.