We are dedicated to an investment management discipline that targets above-average growth while minimizing the risk of loss. We believe that the two graphs below clearly illustrate our success in these areas.
Return: A growth chart can help a prudent investor determine how an investment manager has fared during bull and bear markets.
PIN’s performance, as represented by the chart to the left, shows the impact that prudent risk management can have in preserving principal and achieving long-term investment gains. The S&P 500 Index, shown by the red line in the chart to the left, suffered a 51% loss in the bear market between late 2007 and early 2009. By limiting losses during down markets and participating in upward trends, we have been better able to leverage the effects of compounding and achieve higher returns as shown by the green line. Of course, past performance is not a guarantee of future results, there are risks inherent with all investments, and there is no assurance our objectives will be achieved.
Risk: A scatter plot can help a prudent investor understand whether a manager is adept at minimizing risk of loss.
Prudent investors look for managers who take below-average risk while achieving above-average returns. In a scatter plot, managers who fit this criteria would appear in what we call the “Prudent Quadrant” (i.e., the upper left-hand side of the chart). Investments that instead expose investors to significant risk taking in hopes of achieving high investment gains would fall on the right-hand side of the chart and be considered less desirable, speculative. On the scatter diagram to the right, the green dot representing PIN’s performance shows that we have achieved better-than-average returns while minimizing our client’s risk of loss.
¹ The Citigroup 6-Month Certificate of Deposit index is an unmanaged index of certificates of deposits maturing in six months. Citi reports returns net of expenses. The impact of taxes is not included. It is not possible to invest directly in an index.
² The Standard & Poor’s 500 Index (S&P 500) is an unmanaged broad index of 500 leading U.S. stocks representing the overall market. Calculations assume dividends and capital gains are reinvested and do not include any expenses, including transaction and/or custodial charges, management fees, nor the impact of taxes. Expenses would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
³ The PIN Conservative Portfolio began November 30, 2001. The charts track the actual results of PIN’s first client in its “Conservative” Portfolio Model from November 30, 2001 through June 30, 2003; from July 1, 2003 to the present, it represents the average performance of all clients in the PIN Conservative Portfolio. PIN’s performance includes dividends and is net of all fees, including management fees. Individual results will vary depending on factors such as date invested and cash added to or withdrawn from the account. It should be noted that past performance does not guarantee of future results. There are risks inherent with all investments and there is no assurance objectives will be achieved.
⁴ The Benchmark is the average of the Morningstar US Fund Allocation–50% to 70% Equity category of mutual funds and ETFs. This category of funds is commonly known as “balanced funds” due to their diversification between stocks and bonds.