Key Concept 1

Let Markets Work for You

We Believe

Instead of trying to beat the market, let the long-term growth potential of markets around the world work for you. Over time, stocks have significantly outperformed inflation – as well as bonds. Yet most active money managers have consistently failed to outperform. This is why we only use strategic Asset Class investments – which let markets work for you by focusing on delivering market returns.

How We Know

$1 in the stock market in 1926 and kept invested, by the end of 2015 would have grown to $5,390! That’s the power of free markets, powered by human innovation.

Markets have been significant generators of long-term wealth for investors

Source: Hypothetical value of $1 invested at the beginning of 1927 and kept invested through December 31, 2015. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. Total returns in U.S. dollars. Past performance is no guarantee of future results. U.S. Large Cap Stocks represented by the SBBI U.S. Large Company Stock Index, which is an unmanaged index of stocks of large U.S. companies. The Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Long-Term Government Bonds, One-Month U.S. Treasury Bills, and U.S. Consumer Price Index (inflation), source: Morningstar’s 2015 Stocks, Bonds, Bills, And Inflation Yearbook (2016). Indexes are unmanaged baskets of securities that investors cannot directly invest in. Index performance does not reflect the fees or expenses associated with the management of an actual portfolio. Risks associated with investing in stocks potentially include increased volatility (up and down movement in the value of your assets) and loss of principal. T Bills and government bonds are backed by the U.S. government and guaranteed as to the timely payment of principal and interest. T Bills and government bonds are subject to interest rate and inflation risk and their values will decline as interest rates rise.

Active money managers have a poor track record when it comes to outperforming the market reliably and predictably. 

Instead of trying to beat the market, Asset Class funds focus on capturing market rates of return

Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) 2015. Index used for comparison: US Equities — S&P 1500 Index; International — S&P 700 Index; Emerging Markets — S&P/IFCI Composite; US Fixed — Gov. Short, Global Fixed — Barclays Global Aggregate. Outperformance is based upon equal weight fund counts. Index returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. Past performance is not an indication of future results. More recent performance may alter these assessments or outcomes.