Prudent Investors Network (PIN) is nationally recognized for its expertise in managing investment risk. Minimizing the risk of loss is critical to preserving principal and achieving long-term gains. With current market conditions, the adage slow and steady wins the race has never been more applicable and represents the value of risk management.
During the market downturn of November 2007 to February 2008, the greatest peak-to-trough loss experienced by our flagship PIN Conservative Portfolio was 16.8%, considerably less than the 51% loss taken by the S&P 500 Index and 32.9% by the Average Balanced Fund.
Proper risk management of the PIN Conservative Portfolio during bear markets has resulted in annualized returns that are considerably higher than those of the Average Balanced Fund and the S&P 500 Index.
By carefully managing risk, we help clients avoid the volatile nature of the market and focus on long-term capital growth. 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.
¹ 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 Individual results will vary depending on factors such as date invested and cash added to or withdrawn from the account.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.
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 Average Balanced Fund is the average fund of the Morningstar Moderate Allocation Category of mutual funds, commonly known as balanced funds due to their diversification between stocks and bonds (typically in a ratio of roughly 60% stocks to 40% bonds).