A Sixteen-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 Windhaven® investment approach has helped deliver attractive long-term performance while attempting to reduce losses during turbulent markets since 2002. View Windhaven Strategies.
(1/1/2002 through 9/30/2018a)
1/1/2002 through 9/30/2018a
Windhaven Diversified Strategies
Compound Annual Returns (Net)
(as of 9/30/2018a)
| Compound Annual Returns (Net) (as of 9/30/2018a) |
Last 12 Months |
Last 3 Years |
Last 5 Years |
Last 10 Years |
Since 1/1/2002 |
|---|---|---|---|---|---|
| Diversified Conservative Wrap Compositeb | 1.4% | 3.5% | 2.1% | 3.0% | 4.6% |
| Global Conservative Benchmarkd | 2.1% | 3.9% | 2.9% | 4.3% | 4.8% |
| Diversified Growth Wrap Compositeb | 4.7% | 7.0% | 3.9% | 4.9% | 6.5% |
| Global Growth Benchmarkc | 6.0% | 8.1% | 5.2% | 5.9% | 5.9% |
| Diversified Aggressive Wrap Compositeb | 6.4% | 8.6% | 4.8% | 5.8% | 7.8% |
| Global Aggressive Benchmarke | 8.7% | 10.1% | 5.2% | 5.4% | 6.1% |
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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% Bloomberg 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% Bloomberg 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 the Windhaven Strategies Disclosure Brochure 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 Windhaven strategies’ shorter-term tactical allocations, which can result in more concentration toward a certain asset class or classes. This introduces the risk that Windhaven could be on the wrong side of a tactical overweight, 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. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio.
Performance Calculation
Performance, portfolio characteristics, volatility and other data shown was derived from each strategy’s Diversified Wrap Composite. Each Diversified Wrap Composite includes all discretionary, fee paying wrap 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. The net performance figures presented are net of brokerage commissions and all other expenses, including the firm’s investment advisory fee. 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.
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% Bloomberg 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% Bloomberg 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 indices shown 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 indices. You cannot invest directly in an index. 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.
Please contact a Charles Schwab Investment Professional for a copy of Windhaven's GIPS compliant presentation.
Entities
Windhaven Strategies are available through Schwab's Managed Account Connection® program ("Connection"). Please read Schwab's disclosure brochure for important information and disclosures relating to Connection and Schwab Managed Account Services®.
Portfolio management for the Windhaven Strategies is provided by Windhaven Investment Management, a division of Charles Schwab Investment Advisory, Inc. (“CSIA”). CSIA is a registered investment adviser and an affiliate of Charles Schwab & Co., Inc. (“Schwab”). Both CSIA and Schwab are separate entities and subsidiaries of The Charles Schwab Corporation.