Sei sulla pagina 1di 13

Portfolio Analysis and Recommendations

Prepared for
Web Sample Portfolio

Prepared by
Paul O'Leary Asset Allocation Advisors
www.UnconventionalInvestor.com Oakland CA 94610 US Voice 510.655.4749 July 20, 2007

Before making an investment decision, it's important to check the fund's prospectus for factors such as investment objectives, risks, costs and expenses, liquidity, fluctuation of principal or return, and tax features. Read and consider the prospectus carefully before investing. For further information, please contact your financial advisor.

Disclosure

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

This report analyzes your current securities portfolio and compares it to a portfolio of investments recommended by your investment professional. Your investment professional has prepared this report using a web-based investment software and data service made available by an independent vendor (the "Service"). Please review the following important information and disclosures regarding the Service and the analyses and recommendations contained in this report: The Service The Service is made available to your investment professional on an "as is" basis. The vendor of the Service expressly disclaims all warranties with respect to the Service and its output (or any results to be obtained from the use thereof), including but not limited to any implied warranty of merchantability or fitness for a particular purpose or use, accuracy, completeness, originality or non-infringement and all warranties arising from course of performance, course of dealing and usage of trade or their equivalents under the laws of any jurisdiction. Your investment professional assumes full responsibility for determining the suitability and fitness of any investment strategies, asset allocations or securities purchases or sales recommended in this report. While the Service includes a risk profile questionnaire that can be used to determine your tolerance for risk and to identify a target asset allocation that is consistent with this risk tolerance, your investment professional may choose not to complete the questionnaire or may override its results. The vendor of the Service does not create, endorse or provide investment advice. In no event shall the vendor of the Service or its suppliers or their respective affiliates have any liability for damages of any kind based on any use of the Service, including this report, or on any decisions, actions or analyses arising out of any use of the Service.

Limitations of Analysis The results of the calculations used to generate this report may vary with each use of the Service and over time. This report includes data relating to the historical performance of securities, but past performance is no guarantee of future results. The securities portfolios analyzed in this report were selected and entered by your investment professional. Other investments not considered in this report may have characteristics similar or superior to those proposed by your investment professional. Except as otherwise specifically noted, the portfolio analyses appearing in this report are based on style classifications assigned to the securities within the applicable portfolio. They do not reflect the historic or projected performance of any actual securities in the portfolio. Please refer to the glossary at the end of this report for an explanation of investment terminology and to the notes accompanying each analysis section of this report for an explanation of, and specific disclosures relating to, its content.

Investment Risks There are risks involved with investing, including possible loss of principal. Diversification does not guarantee against loss of principal. There can be no assurance that an investment strategy based on the target asset allocation proposed in this report will be successful. If your plan recommends any of the following types of funds, you should be aware of the associated risks. Bond funds contain interest rate risk, the risk of issuer default, and inflation risk. While U.S. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. The market values of government securities are not guaranteed and will fluctuate. High-yield bonds are considered speculative and investors should be prepared to assume a substantially greater level of credit risk than with other types of bonds. State-specific funds primarily hold securities issued by the state and its municipalities, the fund is more sensitive than general tax-exempt funds to unfavorable economic developments within the state. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. Bank deposits and CDs are guaranteed (within limits) as to principal and interest by an agency of the federal government. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks. Sector funds tend to be more volatile than funds that diversify across many sectors and companies. Foreign markets present additional risks, including currency fluctuation and political instability. In the past, these risks have made prices of foreign stocks more volatile than those of U.S. stocks. Investments in emerging market funds are generally more risky. The portfolio recommended by your investment professional is not FDIC insured, has no bank guarantee, and may lose value.

Asset Allocation

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

i
Risk Profile
The investment profile identifies your tolerance for risk while considering your investment needs and time horizon. See Glossary at the end of this report for investor profile definitions.

Risk Profile (as of July 20, 2007)


Analysis of the holdings in your current portfolio indicates that it is a 80% stock portfolio. If you implement the proposed portfolio, the new portfolio will be considered 70% stock based on the underlying holdings.

i
Asset Allocation Asset allocation is the process of determining optimal allocations across the broad categories of assets (such as stocks, bonds, cash, etc.) that suit your risk tolerance and investment time horizon.

Proposed Asset Allocation (as of July 20, 2007)


The asset allocation models for your current and proposed portfolios are provided below. A proposed 70% stock portfolio may be better suited for your investment needs because it has lower volatility (risk) than your current 80% stock portfolio. Current Allocation 80% Stock Proposed Allocation 70% 80% Stock

Assets Large Cap Value Large Cap Growth Mid Cap Value Mid Cap Growth Small Cap Value Small Cap Growth Real Estate International Equity Fixed Income Cash Other/Unclassified TOTAL:

$ $59,742.67 $61,644.16 $33,625.22 $22,638.94 $9,054.63 $24,079.02 $0.00 $33,185.00 $21,678.58 $26,715.10 $708.45 $293,071.77

% 20.38% 21.04% 11.47% 7.72% 3.09% 8.22% 0.00% 11.32% 7.40% 9.12% 0.24% 100.00%

$ $30,772.54 $30,772.54 $7,693.13 $7,693.13 $5,495.10 $5,495.10 $57,436.20 $87,921.52 $58,497.13 $1,295.38 $0.00 $293,071.77

% 10.50% 10.50% 2.62% 2.62% 1.88% 1.88% 19.60% 30.00% 19.96% 0.44% 0.00% 100.00%

Page 3

Risk-Return Analysis

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

i
Historical Risk to Return The points on this chart show the average annual return an investor would have received over the last ten years as well as the average annual investment fluctuation an investor would have had to tolerate during the same ten year period.

Historical Risk to Return of Asset Categories1(as of March 31, 2007)

Past performance is no guarantee of future results.

Page 4

Risk-Return Analysis

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

i
Historical Growth The following chart shows the historical returns of your current and proposed portfolios.

Historical Performance(as of March 31, 2007)


Based on the asset allocation of the current and proposed portfolios, the historical return of your current portfolio may be less than the proposed portfolio.

The historical performance of a portfolio is determined by assigning proxy benchmark indices weighted by the various asset styles in the portfolio. For a list of the appropriate indices please see the footnote section at the end of this report. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

Page 5

Proposed Portfolio

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

i
Important Note
Other investments not considered might have characteristics similar or superior to those proposed by your investment professional. The analysis used in creating your proposed allocation does not search for, analyze or favor certain securities or investments. See Glossary at the end of this report for investor profile definitions.

Proposed Asset Allocation and Holdings (as of July 20, 2007)


The proposed holdings were chosen to match your target asset allocation, based on your investor profile.

Proposed Asset Allocation 70% Stock Large Cap Value Large Cap Growth Mid Cap Value Mid Cap Growth Small Cap Value Small Cap Growth Real Estate International Equity Fixed Income Cash Other/Unclassified

$ $30,772.54 $30,772.54 $7,693.13 $7,693.13 $5,495.10 $5,495.10 $57,436.20 $87,921.52 $58,497.13 $1,295.38 $0.00

% 10.50 10.50 2.62 2.62 1.88 1.88 19.60 30.00 19.96 0.44 0.00

symbol VFITX VGSIX VGTSX VIPSX VTSMX

Name Vanguard Intermediate-Term Treasury Fund Investor Shares Vanguard REIT Index Fund Investor Shares Vanguard Total International Stock Index Fund Vanguard Inflation-Protected Securities Fund Investor Shares Vanguard Total Stock Market Index Fund Investor Shares

$ $29,307.18 $58,614.35 $87,921.53 $29,307.18 $87,921.53

% 10.00% 20.00% 30.00% 10.00% 30.00%

TOTAL:

$293,071.77

100.00%

Page 6

Portfolio Analysis

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

Style Analysis1(March 31, 2007)

Page 7

Portfolio Analysis

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

Sector Analysis1(March 31, 2007)

Page 8

Glossary

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

Products and Analysis

Small Cap: Refers to stocks with a relatively small market capitalization. The definition of small-cap can vary but refers to stocks that are generally more risky than those of large or mid cap stocks. Mid Cap: Refers to stocks with a market capitalization between small cap and large cap. In general, these stocks are less risky than small cap stocks and more risky than large cap stocks. Large Cap: Refers to stocks with a market capitalization greater than both small and mid cap. In general, these stocks are les risky than both small and mid cap stocks. ETF: A fund that trades like a stock. Generally ETF's track a market index and can benefit from lower management fees than other mutual funds. SMA: A privately managed investment account opened through a brokerage or financial advisor to buy individual assets. Bond Funds: A fund that invests in fixed income instruments. A bond fund can range from very conservative government bond funds to more volatile high yield funds. Emerging Market Funds: A fund investing a majority of its assets in the financial markets of a developing country. International Funds: A fund that can invest in companies located in any geographic area outside the domestic country. Market Index: A pre-selected group of investments created to provide a representation of the performance of the overall stock or bond market or a segment of the stock or bond market. Money Market Funds: A fund that invests in short-term debt instruments. Its objective is to earn interest for its investors while maintaining a constant price of $1.00. REIT Funds: A fund with an objective of investing in real estate. A REIT can invest in property directly or in the debt associated with real estate. Sector Funds: A fund whose objective is to invest in a particular industry or sector of the economy. Single Stock Risk: The risk of investing in a single stock can be much greater than investing in a fund product because a fund holds several stocks, thus distributing the risk across multiple investments.

Page 9

Footnotes

A personal investment proposal for Web Sample Portfolio July 20, 2007

prepared by Paul O'Leary Voice 510.655.4749

Historical Risk to Return of Asset Categories 1. The historical risk graph is based upon a risk return analysis of several model asset allocations over the ten year period ending with the calendar quarter end indicated above. Asset Allocations are based on diversified indices representing each asset class. The risk and return of Large Cap Value within each model are based on the S&P 500/Citigroup Value, Large Cap Growth is based on S&P 500/Citigroup Growth, Mid Cap Value is based on the S&P 400/Citigroup Value, Mid Cap Growth is based on the S&P 400/Citigroup Growth, Small Cap Value is based on the S&P 600/Citigroup Value, Small Cap Growth is based on the S&P 600/Citigroup Growth, International Equities are based on the MSCI EAFE Index, REIT is based on the NAREIT Index, Fixed Income is based on the Lehman Aggregate Index, and Cash is based on the Merrill 3-Month T-Bill Index. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Note: If a portion of a portfolio is categorized as Other, then that percentage of the portfolio is excluded from the calculation to determine a portfolio's risk and return. Historical Performance The historical performance graph is based on 10 years of historical monthly returns based on exposure to various indices over the ten year period ending with the calendar quarter end indicated above. The risk and return of Large Cap Value within each model are based on the S&P 500/Citigroup Value, Large Cap Growth is based on S&P 500/Citigroup Growth, Mid Cap Value is based on the S&P 400/Citigroup Value, Mid Cap Growth is based on the S&P 400/Citigroup Growth, Small Cap Value is based on the S&P 600/Citigroup Value, Small Cap Growth is based on the S&P 600/Citigroup Growth, International Equities are based on the MSCI EAFE Index, REIT is based on the NAREIT Index, Fixed Income is based on the Lehman Aggregate Index, and Cash is based on the Merrill 3-Month T-Bill Index. Note: If a portion of a portfolio is categorized as Other, then that percentage of the portfolio is excluded from the calculation to determine a portfolio's risk and return.

Style Analysis 1. The style analysis uses the following indices: Cash represents exposure to the Merrill 3-month Treasury Bill Index. Government Bonds represents exposure to the Lehman Government Bond Index. Corporate Bonds represents exposure to the Lehman Corporate Bond. Mortgage Backed represents exposure to the Lehman Mortgage Backed Bond Index. Large Cap Value represents exposure to the S&P 500/Citigroup Value. Large Cap Growth represents exposure to the S&P 500/Citigroup Growth. Mid Cap Value represents exposure to the S&P 400/Citigroup Value. Mid Cap Growth represents exposure to the S&P 400/Citigroup Growth. Small Cap Value represents exposure to the S&P 600/Citigroup Value. Small Cap Growth represents exposure to the S&P 600/Citigroup Growth. International Equity represents exposure to the MSCI EAFE Index. REIT represents exposure to the NAREIT Index. Sector Analysis 1. The Sector Analysis follows Standard and Poors and MSCIs GICS sector classification.

Page 10

Portfolio expenses, current & projected


1.05% 0.90% 0.75% 0.60% 0.45% 0.30% 0.15% 0.00% Current Expense Ratio Current Expense Ratio, mutual funds only Recommended Portfolio; fund expenses only Recommended Portfolio; fully managed solution
0.25% 0.54% 0.97% 0.97%

Restructuring Payback, in years


3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0
With Recommended Portfolio Including Ongoing Management

Page 11

Annual Expenses
Summary Data
Portfolio Value Portfolio Total Expenses Portfolio Weighted Exp Ratio Mutual Fund Assets Mutual Fund Expenses Mutual Fund Expense Ratio $293,072 $2,851 0.97% $293,072 $2,851 0.97%

Filter Type Mutual Fund Data Sum - Expenses Sum - Value

2850.51 $293,071.77

Type Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund

Symbol $CASH CLGAX CSIEX FCNTX GABAX HLEMX JABAX JAVLX LLPFX LSBRX SSBMX SSHFX SWPIX TRRBX VMMXX

Name Cash Calvert Large Cap Growth Fund; Class A Calvert Social Investment Fund, Equity Fidelity Contrafund Gabelli Asset Fund Harding, Loevner Emerging Markets Fund Janus Balanced Fund : Janus Twenty Fund Longleaf Partners Fund Loomis Sayles Bond Fund; Retail Class SSgA Bond Market Fund Sound Shore Fund, Inc Schwab S&P 500 Index Fund T Rowe Price Retirement 2020 Fund Vanguard Prime Money Market Fund

Price* $1.00 $35.54 $40.75 $73.33 $55.40 $55.20 $26.21 $64.31 $39.47 $14.50 $9.41 $43.00 $24.12 $19.12 $1.00

Shares 15,000 553 508 454 634 385 580 463 751 571 661 724 814 427 1

% Weight 5.12% 6.71% 7.06% 11.36% 11.97% 7.25% 5.19% 10.16% 10.12% 2.83% 2.12% 10.62% 6.70% 2.79% 0.00%

Value $15,000.00 $19,653.62 $20,701.00 $33,291.82 $35,123.60 $21,252.00 $15,201.80 $29,775.53 $29,641.97 $8,279.50 $6,220.01 $31,132.00 $19,633.68 $8,164.24 $1.00

Expense Ratio 0.00% 1.51% 1.23% 0.89% 1.36% 1.63% 0.81% 0.87% 0.90% 1.00% 0.50% 0.92% 0.36% 0.72% 0.00%

Expenses $0.00 $296.77 $254.62 $296.30 $477.68 $346.41 $123.13 $259.05 $266.78 $82.80 $31.10 $286.41 $70.68 $58.78 $0.00

Page 12

Cost Basis Taxable Accounts Only


Taxable Portfolio Value Gain Taxes at 15% Type Mutual Fund Mutual Fund Mutual Fund Mutual Fund Symbol CLGAX CSIEX FCNTX GABAX $108,770.04 $26,863.04 $4,029.46 Name Calvert Large Cap Growth Fund; Class A Calvert Social Investment Equity Portfolio Fidelity Contrafund Gabelli Asset Fund; Price* $35.54 $40.75 $73.33 $55.40 Shares 553 508 454 634 Value $19,653.62 $20,701.00 $33,291.82 $35,123.60 Cost Basis $12,343.00 $13,450.00 $28,003.00 $28,111.00 Gain $7,310.62 $7,251.00 $5,288.82 $7,012.60

Page 13