Asset Class Returns 15 years

Asset Class Returns 15 years - Comparing asset classes over...

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Unformatted text preview: Comparing asset classes over time Evergreen Investments’ management capabilities cover the full spectrum—from low-risk, stable money market funds to aggressive sector funds. Evergreen has more than 60 retail mutual funds for clients to choose from that cover both domestic and international markets, as well as industry sectors. BEST 1994 International International Equity Equity 1995 1996 1997 1998 1999 2000 2001 2002 2003 Large Cap Large Cap Large Cap Large Cap International Equity U.S. Bond U.S. Bond International Bond Small Cap 2004 2005 2006 2007 International International International International Equity Equity Equity Bond 32.56% 7.78% 39.36% 24.01% 34.53% 33.98% 26.96% 11.63% 8.42% 22.09% 47.25% 20.25% 13.54% 26.34% 11.30% Small Cap International Bond Mid Cap Mid Cap Mid Cap International Equity Large Cap Mid Cap Cash U.S. Bond Mid Cap Mid Cap Mid Cap Small Cap International Equity 18.91% 4.93% 34.46% 19.00% 29.01% 20.00% 21.79% 8.25% 4.42% 10.27% 40.06% 20.22% 12.65% 18.37% 11.17% International Bond Cash Small Cap Small Cap Small Cap International Bond Small Cap Cash Small Cap Cash International Equity Small Cap Small Cap Large Cap U.S. Bond 14.53% 4.19% 28.44% 16.49% 22.36% 18.28% 21.26% 6.18% 2.49% 1.78% 38.59% 18.33% 4.55% 15.53% 6.97% Diversified Portfolio Diversified Portfolio Diversified Portfolio Diversified Portfolio Diversified Portfolio Diversified Portfolio Mid Cap Diversified Portfolio International Bond Diversified Portfolio Large Cap Diversified Portfolio Diversified Portfolio Mid Cap Diversified Portfolio 14.46% 1.78% 22.50% 11.41% 13.84% 13.82% 18.23% -0.56% -3.59% -6.54% 26.68% 12.07% 4.39% 15.26% 6.48% Mid Cap Large Cap U.S. Bond Mid Cap Diversified Portfolio International Bond Diversified Portfolio International Equity Diversified Portfolio International Bond Large Cap Diversified Portfolio Large Cap 14.30% 1.63% 21.12% 6.05% 9.68% 10.09% 12.08% -2.47% -4.14% -15.94% 24.53% 12.04% 3.77% 13.02% 5.89% U.S. Bond Small Cap U.S. Bond Cash Cash U.S. Bond Cash Small Cap Mid Cap Mid Cap International Bond Large Cap Cash International Bond Mid Cap 9.75% -1.82% 18.48% 5.30% 5.33% 8.67% 4.85% -3.02% -5.62% -16.19% 18.63% 8.31% 3.07% 6.84% 5.60% Large Cap Mid Cap Cash U.S. Bond Large Cap Large Cap Small Cap U.S. Bond U.S. Bond U.S. Bond Cash Cash 8.21% WORST Annual returns for key indexes (1993-2007), ranked in order of performance (best to worst) 1993 -2.09% 11.21% 5.27% 1.78% 5.23% -0.83% -12.14% -14.57% -20.48% 4.11% 4.34% 2.43% 4.85% 5.00% Cash U.S. Bond Cash U.S. Bond International Bond Small Cap Large Cap Cash Cash International Bond U.S. Bond Small Cap 3.19% -2.92% 6.03% 3.61% -3.77% -2.55% -23.36% 1.15% 1.33% -9.24% 4.33% -1.57% International International Bond Equity International International International Equity Bond Equity International International International Equity Bond Equity -6.17% -14.17% -21.44% Source: FactSet. Past performance does not guarantee future results. The performance quoted represents past performance as of 12/31/07 and current performance may be lower or higher. It is not possible to invest directly in an index. This performance does not represent Evergreen funds performance. The illustration does not take into account any fees, expenses or taxes associated with investing. ■ JPM Non-US Gov Bd Index (J.P. Morgan Non-U.S. Government Bond Index represents the International Bond category. This is an independently maintained and published index composed of non-U.S. government bonds with maturities of one year or more. ■ LB Agg Index (Lehman Aggregate Bond Index) represents the Bond category and includes U.S. government, corporate and mortgage-backed securities with maturities up to 30 years. ■ ML 3 MO T-Bill Index represents a Cash Investment and is composed of newly issued 90-day Treasury bills. ■ MSCI EAFE Index (Morgan Stanely Capital International Index) represents the International Equity category and measures the performance of the developed stock markets of Europe, Australia and the Far East. ■ Russell 2000 Index represents the Small Cap category and measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. ■ Russell Mid Cap Index represents the Mid Cap category and measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 25% of the total market capitalization of the Russell 1000 Index. ■ Russell Top 200 Index represents the Large Cap category and measures the performance of the 200 largest companies in the Russell 1000 Index, which represents approximately 75% of the total market capitalization of the Russell 1000 Index. ■ Diversified Portfolio is represented by an equal investment in the indexes previously listed. Asset allocation: A potential remedy for volatility If you are concerned about volatility in the market, it helps to understand the investment concepts that will address your concerns and leave you with a balanced long-term portfolio. When stocks are on the rise, oftentimes bonds are losing value in the marketplace, and vice versa, as the accompanying chart illustrates. Asset classes have different cycles. F O R M O R E I N F O R M AT I O N Contact your Evergreen wholesaler or Internal Sales Consultant, or visit EvergreenInvestments.com. Allocating among classes means avoiding the rollercoaster. Too many assets in one class often produce alarming peaks and valleys in a portfolio’s overall return. A portfolio with a careful balance of asset classes may help eliminate the extremes, providing enough return potential from stocks to meet goals and enough stability from bonds to ride out dips in equity performance. Spreading risk across asset classes also means spreading your potential opportunity for reward. At any given time, some portion of the market may be experiencing gains, and you have to be there—not on the sidelines—to reap the potential benefits. Diversifying investments creates opportunity. Evergreen Investments 200 Berkeley Street Boston, MA 02116-5034 Evergreen mutual funds are distributed by Evergreen Investment Services, Inc. 200 Berkeley Street, Boston, MA 02116-5034. Evergreen Investments is a service mark of Evergreen Investment Management Company, LLC. Copyright 2008, Evergreen Investment Management Company, LLC. SM Evergreen Investment Management Company, LLC is a subsidiary of Wachovia Corporation and is an affiliate of Wachovia Corporation's other Broker Dealer subsidiaries. Your original allocation may change dramatically with the ebb and flow of the markets. Losses in the stock market may mean your portfolio is overweighted in bonds, in relation to your goals. Use stock market volatility to open the dialogue about diversification with your financial advisor, based on your risk-reward profile. Rebalancing periodically keeps portfolios on target. Evergreen Investments has the funds to meet diversification needs. AN INVESTOR SHOULD CONSIDER THE FUND ’ S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING OR SENDING MONEY. THIS AND OTHER IMPORTANT INFORMATION ABOUT THE INVESTMENT COMPANY CAN BE FOUND IN THE FUND’S PROSPECTUS. TO OBTAIN A PROSPECTUS, PLEASE CALL EVERGREEN’S INVESTMENT SERVICES CENTER AT 800.343.2898 OR VISIT EVERGREENINVESTMENTS . COM . P LEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. Bond funds have the same inflation, interest rate and credit risks that are associated with the individual bonds held by the fund. Generally, the value of bond funds rises when prevailing interest rates fall and falls when interest rates rise. Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability and foreign currency fluctuations. Smaller capitalization stock investing may offer the potential for greater long-term results; however, it is also generally associated with greater price volatility due to the higher risk of failure. Mid-cap securities may be subject to special risks associated with narrower product lines and limited financial resources than compared to their large-cap counterparts and, as a result, mid-cap securities may decline significantly in market downturns. Funds that invest in high yield, lower-rated bonds may contain more risk due to the increased possibility of default. Mutual funds: N OT F D I C I N S U R E D N OT BA N K G UA R A N T E E D M AY L O S E VA L U E order# 566839 job# 110262 3/07 ...
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This note was uploaded on 03/16/2012 for the course FIN 300 taught by Professor Haroldwilliamson during the Spring '12 term at S. Alabama.

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