Comparison of Reppond Investments, Inc.’s strategies to any stock market index is for illustrative purposes only. The volatility of the indices used for comparison may be materially different from the volatility of Reppond Investments, Inc.’s programs due to differences in diversification and actual securities held by Reppond Investments, Inc. vs. the market indices. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will be profitable or that you will not lose money.
Reppond Investments, Inc. does not make any representation that our strategies will or are likely to achieve returns similar to those shown in the performance graphs in this presentation. Reppond Investments, Inc. reserves the right to trade different funds within their strategies than those reflected in the models shown. You cannot invest directly in a stock market index as these are unmanaged, broadly based indices, which differ in numerous respects from the specific portfolio composition. Dividends and income are included in the index returns. The S&P 500 is a trademarked term of the McGraw Hill Company, and index data was compiled from sources we believe to be reliable, however Reppond Investments, Inc. makes no representations or guarantees with respect to the accuracy or completeness of such data.
Past performance is not indicative of future results. Therefore, no current or prospective client should assume that future performance will be profitable. The historical performance results for indices and index funds used as proxies for indices are provided exclusively for comparison purposes only, so as to provide general comparative information to assist an individual client or prospective client in determining whether the performance of Reppond Investments, Inc.’s strategies meets, or continues to meet, his/her investment objective(s). It should not be assumed that any Reppond Investments, Inc.’s strategy will correspond directly to any such comparative index.
Different types of investments and/or investment strategies involve varying levels of risk. There can be no assurance that any specific investment or investment strategy (including the investment strategies devised or undertaken by Reppond Investments, Inc.) will be profitable for a client’s or prospective client’s portfolio. All performance results have been compiled solely by Reppond Investments, Inc. and are from sources we believe to be reliable. They have not been independently audited or verified.
Returns for the model portfolios reflecting the investment strategies of Reppond Investments, Inc. that are reported through TimerTrac.com were calculated using the following methods: Monthly return is the return on each investment in the specific model portfolio or strategy. Each investment’s individual return is combined using a weighted average with all of the investments in a model portfolio or strategy. The monthly return is the weighted average of returns and roughly approximates what a portfolio holding those securities would have returned during the reporting period. The annualized return is the geometric mean of the returns with respect to one year. The total return on investment tells the investors the percentage gain or loss on asset based upon the purchase price.
Reppond Investments, Inc. uses an active management approach with each of its strategies. Each actively managed strategy is quantitatively driven and governed by pre-defined buy and sell rules for index selection. In no way should the performance of this hypothetical model strategy be considered indicative or a guarantee of the future performance of an actual client’s portfolio using the same or similar investment strategy; be considered indicative of or the actual performance achieved by actual clients; or viewed as a substitute for actual portfolios that may be recommended for a client’s particular situation. Investments in securities involve risk and the loss of investment principal is possible. Investments in securities will not always be profitable.
Reppond Investments, Inc. is a registered investment adviser. We may not transact business in states where we are not appropriately registered, excluded or exempt from registration. Individual responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.
Specific TimerTrac Disclosures
TimerTrac is a platform that tracks real time trade signals. However, it is not a live account, so trades are not made with real money. TimerTrac DOES require that the hypothetical “trades” be made in advance of the close each day just as if they were being made in a live account. It is like a real time trade simulation.
Trades for this strategy were made in accordance with TimerTrac’s rules. However, TimerTrac allows the money manager to apply those trades to a different index at some point in the future. This means that the data on TimerTrac is some mixture between real time and hypothetical trades.
Prior to August 2018, the strategy operated with a mixture of sector and index funds. When a trade was made, it was applied that particular sector or index fund. Over time, this approach produced a mixture of both favorable and unfavorable results. Results were inconsistent. The goal, however, is to have a strategy that is as consistent as possible in all market conditions.
On August 1, 2018, based on extensive research, Ben discovered a better way to apply the trade signals. Simply stated, more consistent returns were obtained when the signals were applied to a broad index fund rather than to a fund that tracks that sector. This was a simple change, but the output was quite different. The Dow Jones Index or to the NASDAQ 100 index were the most ideal index choices – depending on the sector. Research and further refinement continued on this approach throughout August.
Prior to this date, if there was a “buy” signal for the financial services sector, for example, the trade was placed to “buy” the financial services sector fund. After that date, that same financial services “buy” signal would actually be placed to buy a fund that tracked the Dow Jones Industrial Average, for example. In other words, a broader index would be used for the actual trade rather than a narrower sector index.
Each sector or index previously traded through TimerTrac has been configured to reflect how those signals are now being applied. New trades after August 1, 2018 are made in real time based on this updated methodology. We believe that the use of sectors in this manner is an effective tool in selecting WHEN to be “in the market” or “out of the market”, but are not as reliable when used by themselves.
This change in application was also much more closely aligned with the strategy backtest – something that is uncommon.
The performance results of Reppond Investments, Inc.’s strategies shown on TimerTrac are net of the highest annual fee (1% per year for buy and hold strategies and 1.5% per year for actively managed strategies) and include the reinvestment of interest/dividends and other earnings or adjustments in valuation based on taxation of the investment vehicles. Performance results of the strategies developed by Reppond Investments, Inc. do not reflect the impact of federal or state income taxes a client would pay on gains in a taxable investment portfolio.