Professional Documents
Culture Documents
Conservative
Domestic Equity
International Equity
Domestic Fixed Income
Alternative Investments
Money Market
Total
Balanced
Balanced Growth
Growth
Aggressive
29%
7%
50%
5%
8%
100%
38%
12%
39%
5%
6%
100%
43%
19%
29%
5%
4%
100%
50%
24%
18%
5%
2%
100%
65%
29%
0%
5%
1%
100%
6%
8%
10%
12%
14%
Target Volatility*
*Target Volatility is our estimate for the annual standard deviation of portfolio returns.
Source: Wisco Investment Management LLC
33%
30%
25%
20%
16%
15%
13%
Quarterly Returns
10%
5%
0%
5%
1%
0%
2%
6%
0%
-5%
-7%
4Q15
3Q15
2Q15
1Q15
4Q14
2015
2014
2013
2012
2011
-10%
Source: Dow Jones U.S. Broad Stock Market Index and Wisco.
INTERNATIONAL EQUITY
20%
17%
15%
14%
Quarterly Returns
10%
4%
5%
0%
-15%
-12%
-14%
4%
Quarterly Returns
3%
0%
1%
-2%
4Q15
3Q15
2Q15
1Q15
4Q14
2015
2014
2013
2012
-2%
2011
-4%
2% 1%
-1%
-2%
4Q15
3Q15
2Q15
1Q15
4Q14
2015
2014
2013
2012
2011
-20%
6%
6%
0%
-6%
-10%
8%
2%
-3%
-3%
-5%
3%
0%
8%
ALTERNATIVE INVESTMENTS
The Dow Jones-UBS Commodity Index declined 13%
in the quarter. In agriculture, Corn prices decreased
7%1 and Soybean prices decreased 2%1, as the
strong dollar along with a soft overseas demand
hurt results. We think consistently low prices could
result in less acres planted this Spring in North
America and Russia. Gold and silver prices both
declined 5%2,3 in the quarter, as the strong dollar
continues to pressure commodity prices. Real
Estate Investment Trusts (REIT) increased 8%4 in
the quarter as investors looked to purchase income
producing assets. Finally, Crude Oil prices declined
19%5 in 4Q15, as domestic producers werent able
to cut production fast enough to avoid inventories
reaching near all-time high levels for December. For
the year, oil prices declined 32%.
MONEY MARKET
Wisco keeps a modest money market allocation in
all of our portfolios. The current yield of the Schwab
Money Market is 0.01%. Low Federal Funds rates
have held down short-term yields. If the Federal
Reserve continues to increase rates in 2016, the
yield for money markets may modestly increase.
Nevertheless, we think short-term interest rates will
remain low for an extended period of time.
1. Return calculation based on the near future contract as quoted in the Wall Street Journal.
2. Return calculation uses ETFS Physical Swiss Gold Shares (SGOL) as a proxy for gold.
3. Return calculation uses iShares Silver Trust ETF (SLV) as a proxy for silver.
4. Return calculation uses Schwab U.S. REIT ETF (SCHH) as a proxy for Real Estate Investment Trusts.
5. Return calculation uses Cushing, OK WTI spot price FOB as a proxy for oil.
Wisco Investment Management LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend
to make an offer or solicitation for the sale or purchase of any specific securities product, service, or investment strategy. Investments involve
risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser, tax professional, or attorney before
implementing any strategy or recommendation discussed herein.
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