A Thirteen-Year Performance Track Record
By diversifying across global capital markets, dynamically adjusting asset allocations, and striving to capture much of the up markets and less of the down, the proprietary Windhaven® investment approach has helped deliver attractive long-term performance while attempting to reduce losses during turbulent markets since 2002. View Windhaven strategies.
Windhaven Diversified Strategies
|Compound Annual Returns (Net)
(as of 6/30/2016a)
|Diversified Conservative Wrap Compositeb||2.2%||2.6%||2.7%||3.6%||4.9%|
|Global Conservative Benchmarkd||2.4%||3.3%||3.4%||4.5%||5.1%|
|Diversified Growth Wrap Compositeb||0.3%||3.5%||3.9%||4.4%||6.5%|
|Global Growth Benchmarkc||−0.9%||4.1%||4.0%||4.3%||5.5%|
|Diversified Aggressive Wrap Compositeb||−1.2%||4.0%||4.4%||5.0%||7.7%|
|Global Aggressive Benchmarke||−3.1%||2.7%||2.7%||3.1%||5.4%|
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Past performance is not indicative of future returns, and the value of investments and the income derived from them can go down as well as up. Future returns are not guaranteed, and a loss of principal may occur.
a. The time period shown is the longest time period for which all three Windhaven® strategies existed concurrently.
b. Performance is based on the actual return of the respective Windhaven Diversified Wrap Composite, net of all fees and expenses.
c. The Global Growth Benchmark is composed of 55% MSCI ACWI, 40% Barclays U.S. Aggregate Bond Index, and 5% S&P GSCI Total Return, rebalanced monthly.
d. The Global Conservative Benchmark is comprised of 20% MSCI ACWI, 75% Barclays U.S. Aggregate Bond Index, and 5% S&P GSCI, rebalanced monthly.
e. The Global Aggressive Benchmark is comprised of 70% MSCI ACWI, 20% Citigroup World Government Bond Index (CWGBI), and 10% S&P GSCI, rebalanced monthly.
Please refer to Windhaven's Form ADV Part 2 for additional information.
Indexes are unmanaged and do not incur management fees, costs, and expenses.
Benchmark Data source: Bloomberg.
Windhaven’s risk-management process includes an effort to monitor and manage risk, but should not be confused with and does not imply low risk or the ability to control risk.
There are risks associated with any investment approach, and Windhaven strategies have their own set of risks to be aware of. First, there are the risks associated with the long-term strategic holdings for each of the strategies. The more aggressive the Windhaven strategy selected, the more likely the strategy will contain larger weights in riskier asset classes, such as equities. Second, there are distinct risks associated with Windhaven Strategies' shorter-term tactical allocations, which can result in more concentration towards a certain asset class or classes. This introduces the risk that Windhaven could be on the wrong side of a tactical over-weight, thus resulting in a drag on overall performance or loss of principal.
International investments may involve additional risks, which could include differences in financial accounting standards, currency fluctuations, political instability, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
Performance, portfolio characteristics, volatility and other data shown was derived from each strategy's Diversified Wrap Composite. Each composite includes all discretionary, fee paying wrap accounts within each strategy, including those that are no longer with the firm. Please note that Windhaven did not manage wrap accounts until December 2010, so data for periods prior to January 2011 was derived from each strategy's respective Diversified Composite. Each Diversified Composite includes all discretionary, fee paying accounts within each strategy, including those that are no longer with the firm. Performance results for the Windhaven Diversified Wrap Composite referred to herein and its respective benchmarks reflect total return figures. Total return figures are calculated using trade date accounting. All realized and unrealized capital gains and losses as well as all dividends and interest from investments and cash balances are included. Accounts are included in each strategy's wrap composite after the first full month of performance to the present or until the cessation of the client relationship with Windhaven. Investment results of each account in the composite are time-weighted performance calculations which represent total return adjusted for cash flows. Composites are calculated monthly, and individual portfolio returns are asset-weighted by using beginning-of-month market values plus weighted cash flows. Monthly geometric linking of performance results is used to calculate annual returns. Composite performance results are presented in U.S. dollars. Windhaven began managing wrap accounts in December 2010. The first full month of wrap account performance occurred in January 2011. Because Windhaven had no wrap accounts eligible for inclusion in this composite until January 1, 2011, composite membership was copied from the respective Windhaven Diversified Composite and the highest program fee for wrap accounts (95 bps) was applied to the gross performance of the respective Diversified Composite. The 95 bps was divided by 12 and applied to each account on a monthly basis to arrive at a net performance. After 12/31/2010, net performance figures presented are calculated using actual expenses, and reflect the actual wrap fee charged. The investment results shown are not representative of an individually managed account's rate of return. Securities used to implement the strategies can differ based on account size, custodian, and client guidelines.
The investment results shown are not necessarily representative of an individually managed account’s rate of return, and differences can occur due to factors such as the timing of initial investment, client restrictions, cash movement, etc. Securities used to implement the strategies can differ based on account size, custodian, and client guidelines.
Benchmark and Performance
The following global benchmarks for each Windhaven strategy are:
Global Conservative—is composed of 20% MSCI All Country World Index (ACWI), 75% Barclays U.S. Aggregate Bond Index, and 5% S&P GSCI Total Return Index (GSCI), rebalanced monthly.
Global Growth—is composed of 55% MSCI ACWI, 40% Barclays U.S. Aggregate Bond Index, and 5% S&P GSCI, rebalanced monthly.
Global Aggressive—is composed of 70% MSCI ACWI, 20% Citigroup World Government Bond Index (CWGBI), and 10% S&P GSCI, rebalanced monthly.
The benchmarks listed above have not been selected to represent an appropriate benchmark with which to compare an investor's performance, but rather are disclosed to allow for comparison of the investor's performance to that of certain well-known and widely recognized indexes. Performance of each Windhaven strategy relative to its respective performance benchmark may have been impacted positively or negatively by economic and market conditions which affect either the benchmark or the Windhaven strategy to a greater degree. Windhaven's strategies may not invest to the same degree as their Global benchmarks in stocks, bonds or commodities, so their performance relative to the Global benchmarks may be impacted by this difference.
References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only. A reference to an index or benchmark does not imply that the Windhaven strategy will achieve returns, experience volatility, or other results similar to the index. The composition of a benchmark index may not reflect the manner in which a Windhaven strategy is constructed in relation to expected or achieved returns, investment holdings, asset allocation guidelines, restrictions, sectors, correlations, concentrations, volatility, or tracking error targets, all of which are subject to change over time. You cannot invest directly in an index.
Please contact a Charles Schwab Investment Professional for a copy of Windhaven's GIPS compliant presentation.
Windhaven Diversified strategies are available through Schwab's Managed Account Connection® program. Please read Schwab's disclosure brochure for important information and disclosures relating to Schwab Managed Account Connection and Schwab Managed Account Service™.
Portfolio management is provided by Windhaven Investment Management, Inc. ("Windhaven"), a registered investment advisor. Windhaven and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.