Principal-10%
Income-30%
Balanced-8%
Growth & Inc. -19%
Growth-5%
International-6%
World-4%
Emerging Mkts.-6% World Small Co.-4%
Mid Cap Growth-4%
Small Cap-4%
Prudential Jennison Small Co. 4%
LifeSpan Target 2033
Born 1963 - 1967
Lincoln National Stable 10%
PIMCO Total Return 10%
Loomis Sayles Bond 5%
Templeton Global Bond 5%
PIMCO Real Return 5%
Invesco Real Estate 5%
Artisan Global Opportunities 3%
American Mutual 5%
Washington Mutual 6%
Fundamental Investors 5%
Europacific Growth 6%
New World Fund 6% Small Cap World 4%
Amcap 5%
Income Fund of America 8%
New Perspective 4%
PRIMECAP Odyssey Aggressive Growth 4%
Portfolio Analysis
Prepared for
PI LifeSpan 2033
Oct 1, 2018
Financial Management Network 26041 Acero
Mission Viejo, CA 92691
949-455-0300
Holdings
PI LifeSpan 2033 Weight (%)
Stable Value @PISTABLE 10
PIMCO Total Return Instl PTTRX 10
American Funds Income Fund of Amer R4 RIDEX 8
American Funds Europacific Growth R4 REREX 6
American Funds New World R4 RNWEX 6
American Funds Washington Mutual R4 RWMEX 6
Invesco Real Estate R5 IARIX 5
Loomis Sayles Bond Retail LSBRX 5
PIMCO Real Return Instl PRRIX 5
American Funds AMCAP R4 RAFEX 5
American Funds Fundamental Invs R4 RFNEX 5
American Funds American Mutual R4 RMFEX 5
Templeton Global Bond A TPINX 5
PRIMECAP Odyssey Aggressive Growth POAGX 4
PGIM Jennison Small Company Z PSCZX 4
American Funds New Perspective R4 RNPEX 4
American Funds SMALLCAP World R4 RSLEX 4
Artisan Global Opportunities Inv ARTRX 3
Cash - -
As of Sep 28, 2018 100
Cash comprises money market accounts and funds.
Allocation
PI LifeSpan 2033 Weight (%)
US stocks large cap 26.9
US stocks mid cap 7.9
US stocks small cap 3.3
Non US stocks 19.2
Unclassified stocks 0.6
US bonds investment grade 6.4
US bonds high yield 1.5
US bonds inflation protected 5.1
Non US bonds 5.9
Unclassified bonds 11.7
Alternative -
Cash & equivalents 10
Other 1.6
100
Stocks 57.9
Bonds 30.5
Cash & equivalents 10
Other 1.6
100
Cash & equivalents comprises money market holdings, and fixed-income securities with maturity of less than 90 days.
Alternative comprises commodity, precious metals and alternative funds.
Stocks Analysis
Sectors
PI LifeSpan 2033 Weight (%) Cyclical
Basic Materials 5.7
Consumer Cyclical 11.7
Financial Services 13.6
Real Estate 9.4
Sensitive
Communication Services 2.9
Energy 6.8
Industrials 10.3
Technology 18.5
Defensive
Consumer Defensive 6.7
Healthcare 12.4
Utilities 1.9
Not classified
Not classified -
100
Percentage of portfolio analyzed 57.9
Cyclical 40.4
Sensitive 38.5
Defensive 21
Not classified -
100
Values are based on the percentage of portfolio analyzed.
Stocks Analysis
Style
PI LifeSpan 2033 Average style
Percentage of portfolio analyzed 57.9
Values are based on the percentage of portfolio analyzed.
Regions
PI LifeSpan 2033
North America 69.2
Latin America 1.7
Europe Developed 13.8
Europe Emerging 0.3
Africa/Middle east 0.8
Japan 3.2
Australasia 0.5
Asia Developed 3.6
Asia Emerging 7
Unclassified -
100
Percentage of portfolio analyzed 57.9
Values are based on the percentage of portfolio analyzed.
Bonds Analysis
Style
PI LifeSpan 2033
Bonds allocation (%) 30.5
Average credit quality BB
% of bonds rated 30
Average effective duration 4.02
% of bonds measured 98
Performance
1 year 3 years 5 years 10 years
Annualized Total Return
PI LifeSpan 2033 7.3% 10.5% 7.3% 8.3%
Risk (standard deviation)
PI LifeSpan 2033 5% 5.9% 6.1% 10.3%
Alpha
PI LifeSpan 2033 -1.7% 0% -0.8% 0.3%
Beta
PI LifeSpan 2033 0.49 0.59 0.59 0.68
Sharpe ratio
PI LifeSpan 2033 1.22 1.58 1.14 0.83
Maximum drawdown
PI LifeSpan 2033 -6% -9.8% -12.1% -28.4%
Distribution rate: PI LifeSpan 2033: 1.57%
Model assumptions:
Dividends: PI LifeSpan 2033: reinvested Simulation: Yearly rebalance
The benchmark used to calculate alpha, beta is: S&P 500 Index TR
Performance
Cumulative returns 10y
Periodic returns 10y
Stress Test
Past performance for historical scenarios
Asian crisis (1997): Currency crisis originated in Thailand and spread to Asian countries. Global markets experienced drops on fear of worldwide contagion.
Russia/LTCM (1998): After Russia defaulted on its bonds, Long Term Capital Management's collapse threatened to cause a chain reaction of losses.
Tech bubble (2000-2001): Deflating of the dot-com bubble caused a prolonged decrease in equity prices.
WTC attack (2001): Terrorist attack disrupted trading in the US markets and triggered a sell-off.
Subprime crisis (2008-2009): A rise in subprime mortgage delinquencies led to a financial crisis and recession.
Funds Expense
PI LifeSpan 2033
Average net expense ratio: 0.77%; Portfolio net expense ratio: 0.69%
Symbol Net expense ratio Weight Net annual
Fund in portfolio expense (*)
American Funds New World R4 RNWEX 0.98% 6% 59
American Funds Income Fund of Amer R4 RIDEX 0.64% 8% 51
American Funds Europacific Growth R4 REREX 0.83% 6% 50
PIMCO Total Return Instl PTTRX 0.46% 10% 46
Loomis Sayles Bond Retail LSBRX 0.91% 5% 46
Templeton Global Bond A TPINX 0.9% 5% 45
Invesco Real Estate R5 IARIX 0.89% 5% 45
PIMCO Real Return Instl PRRIX 0.88% 5% 44
American Funds SMALLCAP World R4 RSLEX 1.05% 4% 42
American Funds Washington Mutual R4 RWMEX 0.64% 6% 38
American Funds AMCAP R4 RAFEX 0.71% 5% 36
Artisan Global Opportunities Inv ARTRX 1.15% 3% 35
PGIM Jennison Small Company Z PSCZX 0.83% 4% 33
American Funds Fundamental Invs R4 RFNEX 0.65% 5% 33
American Funds American Mutual R4 RMFEX 0.64% 5% 32
American Funds New Perspective R4 RNPEX 0.79% 4% 32
PRIMECAP Odyssey Aggressive Growth POAGX 0.64% 4% 26
90% 690
(*) in $, based on portfolio value of $100,000.
Securities
Average annual return as of Sep 28, 2018
Total returns, assuming reinvested dividends
10 years Yield SEC Yield Symbol 1 year 5 years or inception † 12 month 30 day Web
PIMCO Total Return Instl PTTRX -1.5% 2.3% 5.1% 2.79% 2.58% [a]
American Funds Income Fund of Amer R4 RIDEX 5.1% 7.4% 8% 2.77% 2.89% [b]
American Funds Europacific Growth R4 REREX 1.8% 5.6% 5.9% 0.69% 1.18% [b]
American Funds New World R4 RNWEX 1.6% 4.2% 5.5% 1.07% 0.97% [b]
American Funds Washington Mutual R4 RWMEX 14.3% 12% 10.3% 1.82% 1.8% [b]
Invesco Real Estate R5 IARIX 4.6% 8.6% 7.3% 1.54% 1.54% [c]
Loomis Sayles Bond Retail LSBRX 0.6% 3% 6.9% 3.77% 3.44% [d]
PIMCO Real Return Instl PRRIX 0.1% 1.3% 3.8% 3.25% 2.47% [d]
American Funds AMCAP R4 RAFEX 21.8% 13.5% 12.5% 0.34% 0.59% [d]
American Funds Fundamental Invs R4 RFNEX 14.2% 12.7% 10.8% 1.36% 1.41% [d]
American Funds American Mutual R4 RMFEX 12% 11% 10.2% 1.86% 1.98% [d]
Templeton Global Bond A TPINX -2% 1.6% 5.5% 4.44% 4.48% [e]
PRIMECAP Odyssey Aggressive Growth POAGX 31.6% 18% 19% 0% - [f]
PGIM Jennison Small Company Z PSCZX 13.7% 10.5% 10.9% 0.29% - [g]
American Funds New Perspective R4 RNPEX 14.2% 10.8% 10% 0.39% 0.79% [g]
American Funds SMALLCAP World R4 RSLEX 13.7% 9.7% 10.5% 0% 0.06% [g]
Artisan Global Opportunities Inv ARTRX 12.8% 11.4% 12% 0% - [h]
CASH $CASH 1.6% 0.5% 0.3% 1.63% -
† if less than 10 years history, performance since inception and inception date are indicated.
[a] www.pimco.com [b] www.americanfunds.com [c] www.invesco.com/us [d] www.loomissayles.com [e] www.franklintempleton.com [f]
www.odysseyfunds.com [g] www.prudentialfunds.com [h] www.artisanfunds.com
ETF performance is calculated based on the last closing price for the period.
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain current month-end performance information, please consult the websites referenced above. The performance quoted, reflects the reinvestment of dividends and capital gains, is net of expenses and does not reflect the maximum sales load. Such a fee, if taken into consideration, will reduce the performance quoted above.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before
investing. The prospectus and, if available, the summary prospectus contain this and other important information about the
investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully
before investing. Amounts in mutual funds are subject to fluctuations in value and market risk. Shares, when redeemed, may be
Securities
worth more or less than their original cost.
An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of
losing money and should be considered as part of an overall program, not a complete investment program. An investment in
ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and
economic developments, possible trading halts, and index tracking errors.
Important Information
This report presents past performance, which does not guarantee future results. The investment return and principal value will fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than return data quoted herein.
The model portfolio results presented in this report are based on simulated investments, assuming that the holdings are purchased on the first day of the period indicated. When applicable, portfolio rebalancing is simulated to adjust the holdings back to their initial weights, according to the frequency indicated.
The measure of return used in this report include distribution income such as dividends. The simulation of model portfolios does not take into account trading costs and tax implications.
Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.
Definitions
Alpha: the excess return of the investment over the benchmark, after adjusting for risk. A positive value implies that the investment has performed better than expected, relatively to its risk. The benchmark used for alpha calculation in this report is the S&P500 Index Total Return.
Backfill: for investments with an inception date that is later than the beginning of the reporting period, the returns of a similar investment are used to fill the missing data, when indicated. For example, a mutual fund class with long history can be used to backfill the history of another class that has a recent inception date.
Beta: the volatility of the investment compared to the volatility of the benchmark. A value lower than 1 indicates that the investment is less volatile than the benchmark. A value greater than 1 indicates a higher volatility. The benchmark used for beta calculation in this report is the S&P500 Index Total Return.
Cash and equivalents: short term, high credit quality and highly liquid investments such as money market funds.
Correlation: a measure of association between two investments. A positive value indicates that the investments tend to move up and down at the same time. A negative value indicates that the investments tend to move in opposite directions. The maximum value is 1; the minimum value is -1.
Expense ratio: for investment funds, the expense ratio as reported in the fund's prospectus.
Information ratio: A risk-adjusted measure which captures excess or active returns and relates them to excess or active risk. The higher the information ratio, the better.
Maximum drawdown: the largest percent retrenchment from an investment's peak value to the investment’s valley value for a given period.
Risk (Standard Deviation): a measure of dispersion of returns around their historical average. The higher the standard deviation, the more widely the investment's returns vary over time.
Sharpe ratio: compares the investment return against the risk-free return (US Treasury Bill), after adjusting for risk. The greater the Sharpe ratio, the better its risk-adjusted performance.
Sortino ratio: a modification of the Sharpe ratio, using downside deviation for the risk adjustment instead of standard deviation. The downside deviation only considers periods of negative returns.
Up/Down capture ratio: shows what portion of a market performance was captured by an investment in up and down markets.
Yield 12-month: the sum of distributions from the asset(s) over 12 trailing months, divided by the current market price of the asset(s).
Yield SEC: for fixed income investments, the annualized yield based on the 30-day period ending on the last day of previous month.
Asset data (c)2018 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
