BCM produces a quarterly fact sheet that measures the collective progress of clients invested in our All-Weather Balanced strategy. On the surface, it is a benchmark, measuring stick or standard for evaluating performance of the strategy. However, it is so much more. Most importantly, it is a tool for determining if we are fulfilling our investment motto:
Risk managed. Capital preserved. Growth realized.
We have always emphasized process and discipline in our investing approach. By clearly understanding our philosophy, following our process and maintaining discipline, our All-Weather Balanced strategy has been able to fulfill this statement. While our fact sheet will never perfectly mirror each account (individual withdrawals/deposits, rebalancing, etc.) invested in the strategy, we strive to come as close as possible.
To understand and utilize this information, we thought it would be beneficial to show others how to read our fact sheet. This way both clients and prospects alike can have a better understanding of how we seek to fulfill the important words above. We recommend opening this link and following along below to better understand how we measure the strategy’s progress.
Our philosophy provides the foundation of how we build and maintain our investment strategies. While no data is given, it provides the purpose and cornerstone of the information to follow.
Value of $10,000
The big picture. This graph shows the linear performance and dollar appreciation of the All-Weather Balanced strategy over time.
The makeup of the strategy. This shows the mix of assets used (stocks, bonds, and gold) in the strategy and how we may adjust during periods of excess risk.
Strategy results pure and simple. This shows performance growth (after fees) during different time frames. It is important to note that the performance results in the multi-year periods (3 YR, 5 YR, Since Inception) are annualized.
These metrics are more technical but provide a scorecard on how the strategy is performing compared to other benchmarks. Alpha measures the performance of the strategy above a benchmark, adjusted for the risk taken. Standard Deviation measures the range of positive and negative returns that can be expected compared to the long-term average of the strategy. Beta is a measure of the amount of volatility compared to the stock market. The stock market has a Beta of 1.
Annualized Rolling Return (36 Months)
This graph measures the average return of the prior three years over time. Since we seek to achieve returns over entire market cycles, a good measure of performance is a three-year period because it usually contains varying economic climates. This provides insight on how consistent the strategy has performed over time and can help answer this question – have my returns been consistently positive or negative over time?
This graph demonstrates the downsides recorded by the strategy since 2013. At its trough, the All-Weather Balanced strategy dropped by 12.1% in March 2020 while the U.S stock market dropped approximately 32%.
We hope this provides an informative guide for how we invest for our clients. While our current fact sheet has always been available on our website, we are glad to email directly to you on a quarterly basis. Please email firstname.lastname@example.org and let us know you would like to receive the quarterly fact sheet.
Lastly, if you know anyone that would be interested in learning more about our approach to investing, please feel free to forward this fact sheet and have them give us a call. It would mean the world to us to help other investors like you!