The model portfolio can experience high turnover and makes no effort to give any weight or representation to all industry sectors. It often excludes whole sectors and shifts weight from one sector to another and should not be seen as a complete investment program.
"Standard & Poor's is a division of The McGraw-Hill Companies, Inc. "S&P", "S&P 500", "STARS" and "Standard & Poor's" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by BMO InvestorLine. Model portfolios provided by Standard & Poor's are for information purposes only and should not be considered personalized investment advice. Standard & Poor's does not recommend investing based on the model portfolios, nor does Standard & Poor's recommend investing in any particular stock. The model portfolios do not take into account any investor's particular investment objectives, financial situations or needs, and is not intended as a recommendation of particular securities, financial instruments or strategies to any investor. Assets managed in accordance with the models may lose money.
Standard & Poor's makes no warranties, express or implied, as to results to be obtained from use of information provided by Standard & Poor's and used in this service, and Standard & Poor's expressly disclaims all warranties of suitability with respect thereto. While Standard & Poor's has obtained information believed to be reliable, Standard & Poor's shall not be liable for any claims or losses of any nature in connection with information contained in this document, including but not limited to, lost profits or punitive or consequential damages, even if it is advised of the possibility of same.
The equity research reports and recommendations provided by Standard & Poor's Equity Research are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research has no access to non-public information received by other units of Standard & Poor's. Standard & Poor's does not trade on its own account.
Analytic services and products provided by Standard & Poor's are the result of separate activities designed to preserve the independence and objectivity of each analytic process. Standard & Poor's has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process.
Disclaimer:
An investment based upon any of the models should only be made after consulting with a financial advisor and with an understanding of the risks associated with any investment in securities, including, but not limited to, market risk, currency risk, political and credit risks, the risk of economic recession and the risk that issuers of securities or general stock market conditions may worsen, over time. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. As with any investment, investment returns and principal value will fluctuate, so that when redeemed, an investor's shares may be worth more or less than their original cost.
Top Performing Models - Performance Disclosures 02-15-08
The S&P PowerPicks, Global Picks, Top Ten, Platinum, Neural Fair Value 25 and US STARS portfolios are model portfolios ("models") only. Models are not collective investment funds. Assets managed in accordance with the models may lose money. Past performance of the model or benchmark is no guarantee of future performance. It is not possible to invest directly in an index.
Standard & Poor's publishes additional model portfolios which may have underperformed their benchmark or experienced negative performance. For more information regarding those model portfolios, please call Standard & Poor's at 800-523-4534.
The charts in this document depict model performance which is calculated using a time-weighted rate of return. Performance is calculated on a daily basis, except for the period noted in the U.S. STARS section below. Model performance has inherent limitations. Model performance does not represent the results of actual trading of investor assets. Standard & Poor's maintains the models and calculates the model performance shown or discussed, but does not manage actual assets. Thus, the performance shown or discussed does not reflect the impact that material economic and market factors had or might have had on decision-making if actual investor money had been managed. Performance of an investor's actual portfolio will not necessarily match the performance of the model portfolio due to differences in the weightings of the individual stocks. In addition, the model results do not take into account timing differences between the selections by Standard & Poor's and purchases that were or would have been made based on those selections by any advisor or by actual investors. While model performance in each chart may have performed better than the benchmark for the period shown, the performance during any shorter period may not have, and there is no assurance that model will perform better than the benchmark in the future. The models do not take into account any particular investment objective, financial situation or need and are not intended as investment recommendations or strategies.
The model performance does not consider taxes and brokerage commissions, nor does it reflect the deduction of any advisory or other fees charged by advisors or other parties that investors will incur when their accounts are managed in accordance with the model. The imposition of these fees and charges would cause actual performance to be lower than the performance shown. For example, if the model returned 10 percent on a $100,000 investment for a 12-month period (or $10,000) and an annual asset-based fee of 1.5 percent were imposed at the end of the period (or $1,650), the net return would be 8.35 percent (or $8,350) for the year. Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.1%, a total fee of $5,375 and a cumulative net return of 27.2% (or $27,200).
U.S. STARS
Standard & Poor's analysts rank stocks according to their individual forecast of a stock's future total return potential versus the expected total return. The U.S. STARS model performance graph shows how stocks that received particular STARS rankings performed. For model performance calculation purposes, the stocks within each STARS category at December 31, 1986 were equally weighted. Thereafter, additions to the composition of the stocks in each STARS category are made at the average value of the STARS category at the preceding month end. Deletions are made at the closing price of the day that the deletion is made. Performance was calculated from inception through March 31, 2003 on a monthly basis. Thereafter, performance is calculated daily. The model performance calculation for STARS does not take into account reinvestment of dividends, capital gains taxes, brokers' commissions and investment advisory fees. Stocks in each STARS category will change over time, and some or all of the stocks that received STARS rankings during the time period shown may not have maintained their STARS ranking during the entire period.
Platinum and Neural Fair Value 25
The model portfolio can experience high turnover and makes no effort to give any weight or representation to all industry sectors. It often excludes whole sectors and shifts weight from one sector to another and should not be seen as a complete investment program. When stocks are added to the model portfolio, it is assumed that there is available cash to make the addition. A new stock is added at the average value of a stock in the model portfolio at the prior month's end. The number of shares of the new stock is equal to the total market value of the portfolio at the prior month's end divided by the number of stocks in the portfolio at the prior month's end divided by the price of the new stock at the close of the day it was added. In essence, a stock is added to the model portfolio based on the end of day closing price. When a stock is removed from the model portfolio, the whole position is presumed sold at the closing price that day. In this manner, the model portfolio is not rebalanced monthly, but rather Standard & Poor's attempts to keep new additions in line with the average value of all stocks in the model portfolio.
The model performance does not take into account reinvestment of dividends.
The Neural Fair Value (NFV) 25 was added to MarketScope on October 5, 2004, succeeding the NFV 20, which was published on MarketScope from September 26, 2000 through October 4, 2004. Initially the portfolio of the NFV 25 consisted of the NFV 20 as it existed on October 4, 2004 plus five additional stocks. Over time, the portfolio of the NFV 25 will diverge from that of the NFV 20, which continues to operate but is no longer published on MarketScope. This is because, when the NFV 25 needs to replace a stock, it will do so with the stock that receives the highest score under the Neural Fair Value methodology and is not already included in the NFV 20. The NFV 20, on the other hand, can add stocks that are already included in the NFV 25. This means that on days when stocks are removed from both the NFV 20 and the NFV 25, the replacement stocks will always be added to the NFV 20 first.
Global Picks and PowerPicks
Stocks are selected at beginning of the year and are equally weighted; no other additions are made. All stocks in the models are deleted at the end of the year, except in the case of acquisitions where stocks are deleted at the close of the last trading day. Deletions are made at the closing price of the day that the deletion is made. The model performance takes into account reinvestment of dividends.
For Global Picks only, the model is calculated in U.S. dollars. Underlying prices are collected in local currency and converted to U.S. dollars on a daily basis.
Top Ten
Additions to the model are made at the average value of the model portfolio at the preceding month end. Deletions are made at the closing price of the day that the deletion is made. The model performance takes into account reinvestment of dividends.
The benchmark for all the models is the S&P 500 index, except for Global Picks, where the benchmark is the S&P Global 1200 index. The S&P 500 and S&P Global 1200 indexes are calculated in U.S. dollars. The benchmark is unmanaged, includes a different number of holdings and has different risk characteristics than the model and does not include the deduction of expenses and fees. The benchmark for U.S. STARS, Platinum and Neural Fair Value 25 models do not consider reinvestment of dividends. The benchmark for PowerPicks, Global Picks and Top Ten consider reinvestment of dividends. Some of the stocks in a model may have been included in the benchmark for some (but not necessarily all) of the period covered in the chart, and some such stocks may not have been included at all. The methodology for calculating the return of the benchmark differs from the methodology of calculating the return for a model.
Other Disclosures
Copyright © 2008 by The McGraw-Hill Companies, Inc. Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission. All rights reserved. "S&P", "S&P 500", "STARS" and "Standard & Poor's" are trademarks of The McGraw-Hill Companies, Inc. This document does not constitute an offer of services in jurisdictions where Standard & Poor's or its affiliates (collectively, "Standard & Poor's") do not have the necessary licenses.
Model portfolios provided by Standard & Poor's are for information purposes only and should not be considered personalized investment advice. Standard & Poor's does not recommend investing based on the model portfolios, nor does Standard & Poor's recommend investing in any particular stock. The model portfolios do not take into account any investor's particular investment objectives, financial situations or needs, and is not intended as a recommendation of particular securities, financial instruments or strategies to any investor.
Standard & Poor's makes no warranties, express or implied, as to results to be obtained from use of information provided by Standard & Poor's and used in this service, and Standard & Poor's expressly disclaims all warranties of suitability with respect thereto. While Standard & Poor's has obtained information believed to be reliable, Standard & Poor's shall not be liable for any claims or losses of any nature in connection with information contained in this document, including but not limited to, lost profits or punitive or consequential damages, even if it is advised of the possibility of same.
The equity research reports and recommendations provided by Standard & Poor's Equity Research are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research has no access to non-public information received by other units of Standard & Poor's. Standard & Poor's does not trade on its own account.
Analytic services and products provided by Standard & Poor's are the result of separate activities designed to preserve the independence and objectivity of each analytic process. Standard & Poor's has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process.
Standard & Poor's and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.
An investment based upon any of the models should only be made after consulting with a financial advisor and with an understanding of the risks associated with any investment in securities, including, but not limited to, market risk, currency risk, political and credit risks, the risk of economic recession and the risk that issuers of securities or general stock market conditions may worsen, over time. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. As with any investment, investment returns and principal value will fluctuate, so that when redeemed, an investor's shares may be worth more or less than their original cost.