Portfolio Investment Models
ProfitScore Capital Management, Inc.’s (“ProfitScore”) portfolio results represent results for a hypothetical portfolio during the corresponding time period. The performance data assumes the re-investment of dividends and other earnings and reflects the deduction of a model investment management fee of 3.00%, which is the highest fee charged by ProfitScore for managed portfolios, and the separate fees assessed directly by each unaffiliated mutual fund holding that comprised each portfolio. The model fee is calculated quarterly and based on average daily account balance for the previous quarter and assessed on the first day of the next quarter. Actual investment management fees vary by individual client account, but generally range between 2.00% and 2.50% of the value of assets under management. All calculations were based on information obtained from sources we believe to be accurate, but we cannot guarantee the accuracy of such information. ProfitScore reserves the right to change managers and asset allocations for all of the ProfitScore portfolios in its sole discretion.
How performance of the models are tracked.
Each model began with $10,000 put into a hypothetical account, to which no outside funds have been added (all earnings have been reinvested) and from which no withdrawals (other than monthly Advisory fees) have been taken. Our client accounting software tracks all the changes in the portfolio models as they occur and calculates current values and returns. (The objectives and investment strategies of the portfolio models have not changed since their inception). Any fees charged by custodians for special services, such as withdrawals delivered by overnight express or wire, are not included, nor is the one-time account setup fee. However, neither the individual mutual fund performance results nor the composite results reflect the results of any specific ProfitScore client portfolio or any ProfitScore composite. Comparison to the market index is for comparative purposes only and does not imply any similarity between the model portfolio and the index.
Past performance of ProfitScore portfolios may not be indicative of their future performance. No current or prospective client should assume that future performance results will be profitable or equal the past model performance. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable. ProfitScore’s managed portfolios may involve above average portfolio turnover, which could negatively impact upon the net after-tax gain experienced by an individual client. Model portfolios are not a substitution for personalized investment advice. Consult with an experienced financial advisor before investing.
How client accounts relate to portfolio models.
Each client account is invested following a designated portfolio model. For example, if the Guardian portfolio model buys a mutual fund with 15% of its assets, all individual client accounts invested under Guardian also buy that mutual fund with approximately 15% of their assets.
Client accounts are not exact replicas of the portfolio models.
Because client accounts frequently have funds withdrawn and/or added or may have individual investment restrictions, they differ somewhat from their designated portfolio models in both performance and the relative proportions of investments owned. Additionally, clients may request special services that incur a nominal fee, such as overnight delivery of withdrawals, which are not included in the portfolio models.
Hypothetical Investment Models
The ProfitScore hypothetical portfolio results reflect hypothetical, back-tested results, that were achieved by means of the retroactive application of a back-tested portfolio and, as such, the corresponding results have inherent limitations, including: (1) the portfolio results do not reflect the results of actual trading using client assets, but were achieved by means of the retroactive application of each of the referenced portfolios, certain aspects of which may have been designed with the benefit of hindsight ; (2) back-tested performance may not reflect the impact that any material market or economic factors might have had on the adviser’s use of the hypothetical portfolio if the portfolio had been used during the period to actually mange client assets; and (3) for various reasons (including the reasons indicated above), ProfitScore’s clients may have experienced investment results during the corresponding time periods that were materially different from those portrayed in the portfolio.
Information pertaining to ProfitScore’s advisory operations, services, and fees is set forth in ProfitScore’s current disclosure statement, a copy of which is available from ProfitScore upon request. Information pertaining to any mutual fund that is current component of a ProfitScore hypothetical portfolio is set forth in each respective mutual fund’s prospectus, a copy of which is also available from ProfitScore upon request.