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Principal-16%
Income-39%
Balanced-10%
Growth & Inc. -11%
Growth-4%
International-5%
World-4%
Emerging Mkts.-4%
World Small Co.-2%
Mid Cap Growth-3%
Small Cap-2%Prudential Jennison Small Co. 2%
LifeSpan Target 2018Born 1941 - 1953
Lincoln National Stable 16%
PIMCO Total Return 10%Loomis Sayles Bond 8%Templeton Global Bond 8%PIMCO Real Return 9%Invesco Real Estate 4%
Artisan Global Opportunities 4%American Mutual 7%
Europacific Growth 5%
New World Fund 4%
Small Cap World 2%
Amcap 4%
Income Fund of America 10%
New Perspective 4%
PRIMECAP Odyssey Aggressive Growth 3%
Portfolio Analysis
Prepared for
PI LifeSpan 2018Jan 2, 2019
Financial Management Network26041 Acero Mission Viejo, CA 92691949-455-0300
Prepared: Jan 2, 2019
Holdings
PI LifeSpan 2018
Weight (%)
Stable Value @PISTABLE 16
PIMCO Total Return Instl PTTRX 10
American Funds Income Fund of Amer R4 RIDEX 10
PIMCO Real Return Instl PRRIX 9
Loomis Sayles Bond Retail LSBRX 8
Templeton Global Bond A TPINX 8
American Funds American Mutual R4 RMFEX 7
American Funds Europacific Growth R4 REREX 5
American Funds New World R4 RNWEX 4
Artisan Global Opportunities Inv ARTRX 4
Invesco Real Estate R5 IARIX 4
American Funds New Perspective R4 RNPEX 4
American Funds AMCAP R4 RAFEX 4
PRIMECAP Odyssey Aggressive Growth POAGX 3
PGIM Jennison Small Company Z PSCZX 2
American Funds SMALLCAP World R4 RSLEX 2
Cash - -
As of Dec 31, 2018 100
Cash comprises money market accounts and funds.
Please read back page for important information about this report Page 1
Prepared: Jan 2, 2019
Allocation
PI LifeSpan 2018
Weight (%)
US stocks large cap 19.6
US stocks mid cap 5.9
US stocks small cap 2
Non US stocks 14.7
Unclassified stocks 0.7
US bonds investment grade 18.6
US bonds high yield 3
US bonds inflation protected 9.2
Non US bonds 7.1
Unclassified bonds 0.2
Alternative -
Cash & equivalents 16.9
Other 2.2
100
Stocks 42.8
Bonds 38.1
Cash & equivalents 16.9
Other 2.2
100
Cash & equivalents comprises money market holdings, and fixed-income securities with maturity of less than 90 days.Alternative comprises commodity, precious metals and alternative funds.
Please read back page for important information about this report Page 2
Prepared: Jan 2, 2019
Stocks Analysis
Sectors
PI LifeSpan 2018
Weight (%)
Cyclical
Basic Materials 4.9
Consumer Cyclical 11.7
Financial Services 12.6
Real Estate 9.7
Sensitive
Communication Services 3
Energy 6.5
Industrials 10.2
Technology 17.8
Defensive
Consumer Defensive 6.7
Healthcare 14.1
Utilities 2.2
Not classified
Not classified 0.7
100
Percentage of portfolio analyzed 42.8
Cyclical 38.9
Sensitive 37.4
Defensive 23
Not classified 0.7
100
Values are based on the percentage of portfolio analyzed.
Please read back page for important information about this report Page 3
Prepared: Jan 2, 2019
Stocks Analysis
Style
PI LifeSpan 2018
Average style
Percentage of portfolio analyzed 42.8
Values are based on the percentage of portfolio analyzed.
Regions
PI LifeSpan 2018
North America 68
Latin America 1.8
Europe Developed 14.2
Europe Emerging 0.2
Africa/Middle east 0.7
Japan 3.9
Australasia 0.6
Asia Developed 4.8
Asia Emerging 5.7
Unclassified 0.1
100
Percentage of portfolio analyzed 42.8
Values are based on the percentage of portfolio analyzed.
Please read back page for important information about this report Page 4
Prepared: Jan 2, 2019
Bonds Analysis
Style
PI LifeSpan 2018
Bonds allocation (%) 38.1
Average credit quality BB
% of bonds rated 34
Average effective duration 4.39
% of bonds measured 99
Please read back page for important information about this report Page 5
Prepared: Jan 2, 2019
Performance
1 year 3 years 5 years 10 years
Annualized Total Return
PI LifeSpan 2018 -3.5% 4.9% 3.9% 8.1%S&P 500 Index TR -4.4% 9.2% 8.5% 13.1%
Risk (standard deviation)
PI LifeSpan 2018 6.4% 5.4% 5.5% 7.4%S&P 500 Index TR 15.3% 11% 10.9% 13.6%
Alpha
PI LifeSpan 2018 -3.1% 0.1% -0.4% 1.1%S&P 500 Index TR 0% 0% 0% 0%
Beta
PI LifeSpan 2018 0.40 0.45 0.46 0.51S&P 500 Index TR 1.00 1.00 1.00 1.00
Sharpe ratio
PI LifeSpan 2018 -0.81 0.73 0.61 1.04S&P 500 Index TR -0.34 0.77 0.74 0.95
Maximum drawdown
PI LifeSpan 2018 -8.6% -8.6% -10.1% -12.4%S&P 500 Index TR -19.4% -19.4% -19.4% -27.2%
Distribution rate: PI LifeSpan 2018: 2.08% S&P 500 Index TR: 0%
Model assumptions:
Dividends: PI LifeSpan 2018: reinvested; S&P 500 Index TR: reinvested
Simulation: Yearly rebalance
The benchmark used to calculate alpha, beta is: S&P 500 Index TR
Please read back page for important information about this report Page 6
Prepared: Jan 2, 2019
Performance
Cumulative returns 10y
Periodic returns 10y
Please read back page for important information about this report Page 7
Prepared: Jan 2, 2019
Stress Test
Past performance for historical scenarios
Asian crisis (1997): Currency crisis originated in Thailand and spread to Asian countries. Global marketsexperienced drops on fear of worldwide contagion.
Russia/LTCM (1998): After Russia defaulted on its bonds, Long Term Capital Management's collapse threatenedto cause a chain reaction of losses.
Tech bubble (2000-2001): Deflating of the dot-com bubble caused a prolonged decrease in equity prices.
WTC attack (2001): Terrorist attack disrupted trading in the US markets and triggered a sell-off.
Subprime crisis (2008-2009): A rise in subprime mortgage delinquencies led to a financial crisis and recession.
Please read back page for important information about this report Page 8
Prepared: Jan 2, 2019
Funds Expense
PI LifeSpan 2018
Average net expense ratio: 0.78%; Portfolio net expense ratio: 0.66%
Symbol Net expense ratio Weight Net annualFund in portfolio expense (*)
PIMCO Real Return Instl PRRIX 0.88% 9% 79
Loomis Sayles Bond Retail LSBRX 0.91% 8% 73
Templeton Global Bond A TPINX 0.9% 8% 72
American Funds Income Fund of Amer R4 RIDEX 0.63% 10% 63
Artisan Global Opportunities Inv ARTRX 1.15% 4% 46
PIMCO Total Return Instl PTTRX 0.46% 10% 46
American Funds American Mutual R4 RMFEX 0.64% 7% 45
American Funds Europacific Growth R4 REREX 0.83% 5% 42
American Funds New World R4 RNWEX 0.98% 4% 39
Invesco Real Estate R5 IARIX 0.89% 4% 36
American Funds New Perspective R4 RNPEX 0.79% 4% 32
American Funds AMCAP R4 RAFEX 0.71% 4% 28
American Funds SMALLCAP World R4 RSLEX 1.04% 2% 21
PRIMECAP Odyssey Aggressive Growth POAGX 0.64% 3% 19
PGIM Jennison Small Company Z PSCZX 0.81% 2% 16
84% 656
(*) in $, based on portfolio value of $100,000.
Please read back page for important information about this report Page 9
Prepared: Jan 2, 2019
Securities
Average annual return as of Dec 31, 2018Total returns, assuming reinvested dividends
10 years Yield SEC YieldSymbol 1 year 5 years or inception † 12 month 30 day Web
PIMCO Total Return Instl PTTRX -0.3% 2.6% 4.7% 3.12% 3.05% [a]
American Funds Income Fund of Amer R4 RIDEX -5.2% 4.8% 9.4% 3.26% 3.16% [b]
PIMCO Real Return Instl PRRIX -2% 1.5% 4.3% 2.7% 2.38% [b]
Loomis Sayles Bond Retail LSBRX -3.1% 1.8% 7.8% 3.2% 3.9% [c]
Templeton Global Bond A TPINX 1.3% 1.4% 5.2% 6.53% 5.32% [d]
American Funds American Mutual R4 RMFEX -2.1% 7.5% 11.7% 2.18% 2.14% [d]
American Funds Europacific Growth R4 REREX -15.2% 1.5% 7.3% 1.37% 1.25% [d]
American Funds New World R4 RNWEX -12.3% 1.8% 8.3% 1.07% 1.11% [d]
Artisan Global Opportunities Inv ARTRX -9.1% 6.6% 14.7% 0% - [e]
Invesco Real Estate R5 IARIX -5.3% 7.5% 11.6% 1.88% 1.46% [f]
American Funds New Perspective R4 RNPEX -5.9% 6% 11.4% 1.13% 0.96% [f]
American Funds AMCAP R4 RAFEX -1.9% 8% 14% 0.56% 0.67% [f]
PRIMECAP Odyssey Aggressive Growth POAGX -6.9% 11.1% 19.2% 0.07% - [g]
PGIM Jennison Small Company Z PSCZX -13.2% 4.2% 12.3% 0.67% - [h]
American Funds SMALLCAP World R4 RSLEX -9.7% 4.8% 12.6% 0% 0.22% [h]
CASH $CASH 1.9% 0.6% 0.4% 1.92% -
† if less than 10 years history, performance since inception and inception date are indicated.
[a] www.pimco.com [b] www.americanfunds.com [c] www.loomissayles.com [d] www.franklintempleton.com [e] www.artisanfunds.com [f]
www.invesco.com/us [g] www.odysseyfunds.com [h] www.prudentialfunds.com
ETF performance is calculated based on the last closing price for the period.
The performance data quoted represents past performance. Past performance does not guarantee future results. Investmentreturn and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than theiroriginal cost. Current performance may be lower or higher than the performance information quoted. To obtain currentmonth-end performance information, please consult the websites referenced above. The performance quoted, reflects thereinvestment of dividends and capital gains, is net of expenses and does not reflect the maximum sales load. Such a fee, if takeninto consideration, will reduce the performance quoted above.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully beforeinvesting. The prospectus and, if available, the summary prospectus contain this and other important information about theinvestment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefullybefore investing. Amounts in mutual funds are subject to fluctuations in value and market risk. Shares, when redeemed, may beworth more or less than their original cost.
An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of
Please read back page for important information about this report Page 10
Prepared: Jan 2, 2019
Securities
losing money and should be considered as part of an overall program, not a complete investment program. An investment inETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political andeconomic developments, possible trading halts, and index tracking errors.
Please read back page for important information about this report Page 11
Prepared: Jan 2, 2019
Important Information
This report presents past performance, which does not guarantee future results. The investment return and principal value will fluctuate thus an investor's
shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than return data quoted herein.
The model portfolio results presented in this report are based on simulated investments, assuming that the holdings are purchased on the first day of the
period indicated. When applicable, portfolio rebalancing is simulated to adjust the holdings back to their initial weights, according to the frequency indicated.
The measure of return used in this report include distribution income such as dividends. The simulation of model portfolios does not take into account
trading costs and tax implications.
Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been
executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or
hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made
that any account will or is likely to achieve profits or losses similar to these being shown.
Definitions
Alpha: the excess return of the investment over the benchmark, after adjusting for risk. A positive value implies that the investment has performed better
than expected, relatively to its risk. The benchmark used for alpha calculation in this report is the S&P500 Index Total Return.
Backfill: for investments with an inception date that is later than the beginning of the reporting period, the returns of a similar investment are used to fill the
missing data, when indicated. For example, a mutual fund class with long history can be used to backfill the history of another class that has a recent
inception date.
Beta: the volatility of the investment compared to the volatility of the benchmark. A value lower than 1 indicates that the investment is less volatile than the
benchmark. A value greater than 1 indicates a higher volatility. The benchmark used for beta calculation in this report is the S&P500 Index Total Return.
Cash and equivalents: short term, high credit quality and highly liquid investments such as money market funds.
Correlation: a measure of association between two investments. A positive value indicates that the investments tend to move up and down at the same
time. A negative value indicates that the investments tend to move in opposite directions. The maximum value is 1; the minimum value is -1.
Expense ratio: for investment funds, the expense ratio as reported in the fund's prospectus.
Information ratio: A risk-adjusted measure which captures excess or active returns and relates them to excess or active risk. The higher the information
ratio, the better.
Maximum drawdown: the largest percent retrenchment from an investment's peak value to the investment’s valley value for a given period.
Risk (Standard Deviation): a measure of dispersion of returns around their historical average. The higher the standard deviation, the more widely the
investment's returns vary over time.
Sharpe ratio: compares the investment return against the risk-free return (US Treasury Bill), after adjusting for risk. The greater the Sharpe ratio, the better
its risk-adjusted performance.
Sortino ratio: a modification of the Sharpe ratio, using downside deviation for the risk adjustment instead of standard deviation. The downside deviation only
considers periods of negative returns.
Up/Down capture ratio: shows what portion of a market performance was captured by an investment in up and down markets.
Yield 12-month: the sum of distributions from the asset(s) over 12 trailing months, divided by the current market price of the asset(s).
Yield SEC: for fixed income investments, the annualized yield based on the 30-day period ending on the last day of previous month.
Asset data (c)2018 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may
not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for
any damages or losses arising from any use of this information.
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