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Inside This Issue
Feature Staff Spotlight Investment Update Charitable Planning News
I love clutter. Actually, I don’t like
clutter but I do love Microsoft
Clutter. Clutter is an email filtering
option available to Microsoft Office
365 customers like HoyleCohen. It is
similar to an anti-spam filter in that it
moves less important email into a
'clutter' folder where they can be
ignored or reviewed later. Best of all,
it learns and adapts based on your
reading and reviewing habits.
Some months ago, we added this
capability and it’s been one of
quickest productivity boosts I’ve
experienced in a while. Why?
Because I didn’t realize how much
clutter I received and how much time
I actually spend on clutter. I also
didn’t appreciate that ‘clutter’ and
‘junk’ aren’t really the same thing.
Junk we know is bad. After all, it’s
‘junk.’ We don’t like or want junk
and try to dispose of it as quickly and
efficiently as possible. Clutter is
more deceptive because it often has
some value, just not as much as those
things we deem important. Worse
yet, we’re tempted to spend time on
it because it often comes from
sources we know and trust or that we
once viewed as valuable.
Unfortunately, I know now that I was
wasting a lot of time on clutter. First,
I get much more clutter than junk.
This surprised me.
- Continued on Page 4
Welcome F E A T U R E
Clutter
Welcome to the latest issue of The
Shift. This issue’s feature focuses
on how the proliferation of clutter
in our lives often shifts our time
and attention away from what is
most important. One important ac-
tivity for many people each year is
to donate to charitable causes. Un-
fortunately, too much of this is of-
ten done hastily at year end due to
tax considerations. With April 15th
soon behind us and plenty of time
before year end, this issue offers a
simple framework for ‘how to be
good at doing good.’ Finally, most
readers know HoyleCohen best
through the one or two faces with
whom each interacts most frequent-
ly. This issue will begin introducing
team members who often work
behind-the-scenes so you can more
easily recognize the faces and
names of those who support our
clients and advisory teams. We
hope you enjoy this issue and have
a Happy Spring!
1
By Mark Delfino
Spring 2016 Issue 11
Overall, 2015 was a poor year for traditional financial markets across the globe and across most asset classes. Among major global stock markets, the U.S. was the best performer, but that’s faint praise given the S&P 500’s 1.4% return. What’s more, it was a market in which a handful of large tech/Internet companies (e.g., Facebook, Netflix, Google and Amazon.com) generated huge gains while the equal-weighted S&P 500 index actually fell 2.2% for the year. Investors were taken on a bumpy ride in the first quarter of 2016 that – similar to 2015 – ended with the S&P 500 roughly where it started the quarter.
One striking feature of last year’s investment environment was the difference in the direction of the U.S. economy and U.S. monetary policy versus other major global economies. In December, the U.S. Federal Reserve was sufficiently comfortable with the outlook for economic growth and the potential for inflation that it made its first increase in rates in nearly a decade. More recently, the Fed has indicated that future increases may not be forthcoming as quickly as many expected due to the softness in the global economy.
Outside the U.S., regaining more normal growth and inflation has been challenging. Sharply lower commodity prices (notably oil), Middle East tensions, and China’s slower growth continue to weigh on foreign stock market returns. Developed international stocks ended 2015 down 0.8% and lost another 3% in Q1. Emerging markets fared worse, falling 14.9% in 2015, before gaining 5.7% in Q1.
U.S. dollar strength exacerbated the underperformance of foreign markets. While currency effects will always be a shorter-term wild card for non-U.S. assets, they should eventually be a tailwind to dollar-based returns after years of drag.
Oil continues to be a short-term negative, but longer-term positive fac-tor for the global economy. Oil pr ices
hit an 11-year low, falling 30% in 2015 and nearly 50% in 2014.
Fixed-income offered little respite in 2015 but had gains in Q1 2016 due to falling interest rates. High-yield bonds fared worse than higher quality bonds in 2015, but gained back most losses in Q1. Investment-grade municipal bonds continue to be a relative bright spot, rising in both 2015 and Q1 2016.
Private lending and U.S. residential and commercial real estate remain strong with U.S. real estate pr ices continuing the uptrend of the past few years.
These conditions reinforce our belief in the value of our CorePlus approach. When 2016 began and stock prices fell, we began exploring opportunities. In January, we purchased a 5-year Morgan Stanley structured note for many clients with a 15% downside buffer, and the potential to earn three times the upside return in the S&P 500 subject to a total maximum return of 72.5% (11.5% annual compounded return).
In March, we added a public real estate fund to our Core Models. The fund invests primarily in private commercial real-estate funds with the remaining 20-30% invested in public real estate funds (REITs). This enables the fund to be publically traded, while still offering the prospect of lower volatility and stable income as a result of the private funds in which it invests.
We continue to seek out targeted moves like these that we believe can add value for suitable clients over the long run, whether for growth, income or downside protection. As always, we appreciate your confidence in us as we build portfolios for the long run. Please do not hesitate to contact your Advisor with any questions.
From Vanessa Wieliczko, CFA, CAIA & the HoyleCohen Investment Committee
INVESTMENT UPDATE
Many clients should recog-nize Vanessa’s name since it appears on many investment-related communications. Vanessa is our Director of Investments and Portfolio Management and leads the firm’s Investment Commit-tee. While each advisor is a member of our Investment Committee, HoyleCohen’s unique investment capabili-ties and strategies are largely a result of Vanessa’s efforts. To learn more about Vanessa click here.
Welcome Ismar to HC!
HoyleCohen is happy to wel-come the newest member of our staff, Ismar Zildzic. Ismar joins us as a Wealth Advisor in our Sacramento office. Learn more about Is-mar here.
2
Vanessa Wieliczko, CFA, CAIA
(Pronounced “Via-Leech-Ko”)
Staff Spotlight
Ismar Zildzic
3
Before you know how to get
there, you have to know where
you’re going. Set charitable
goals that are measurable and
have a clear timeline before start-
ing on a charitable giving strate-
gy.
Charitable giving is about more
than just personal satisfaction—
it’s about creating a charitable leg-
acy. By involving your family
with your plan, you can ensure
that your charitable values are
passed on to future generations.
Make sure your goals are realistic by
consulting your budget and your finan-
cial advisor. It’s important to find the
right balance of what you hope to ac-
complish in the world and how much
you can reasonably afford to give.
Do some research before opening
your checkbook. Verifying an
organization’s legitimacy is im-
portant, as is evaluating its fiscal
responsibility, mission statement
and affiliations.
Cash, trusts, securities, real estate,
clothing, art and even vehicles—
each will have different implica-
tions for your giving strategy. Con-
sider which may be best based on
your assets and your tax situation.
Success won’t look the same for each
donor. Periodically ask yourself: Have
I met my initial goals? Am I on track
to do so? If not, how can I improve
the success of my plan for next year?
HC Giving Back has been very busy in the last few months.
Here are some of the latest updates:
Ashley Rhame is the new Chairwoman. Karen Ocskasy steps down after leading the group for three years. Thank you, Karen!
Over 200 sack lunches were delivered to the homeless in downtown San Diego.
School supplies including 250 recorders and 660 individual whiteboards were donated to San Miguel Elementary School.
HC Giving Back
CHARITABLE PLANNING
How to Be Good at Doing Good 6 steps for planning charitable giving
HoyleCohen is a fee based investment advisor and does not
receive commissions for the investment strategies discussed.
Analysis of market conditions and performance is neither an
indication nor a guarantee of future market conditions or
future investment performance. Descriptions of investments,
asset classes and portfolios are for illustration purposes
only. No decisions regarding investment strategies should be
made based solely on this content. Each Situation is unique
and each client should first discuss his or her circumstances
with advisor. The opinions expressed here are those of the
authors and may not represent those of others at the firm.
This newsletter is published by:
HoyleCohen, LLC
9350 Waxie Way, Suite 500
San Diego, CA 92123
Phone: 858-576-7300
www.hoylecohen.com
© 2016-All rights reserved
In the past six days my Junk folder
added less than 100 emails whereas
Clutter nabbed and put 706 emails in
its folder.
How did this happen? Clutter gives
me a nice summary by source so I can
see the culprits. For instance, there’s
a service called Advisor Perspectives
that I like and often read. When the
service started years ago, I got one
email a week, each with links to mul-
tiple industry articles or reports. I
then began receiving emails daily,
making interesting articles harder to
find. They didn’t stop there because
they were my number one ‘clutter
culprit,’ accounting for 33 messages
in only six days.
Pre-Clutter, I would start my day
skimming and deleting 30-50 emails
that I received between 10 p.m. and
6 a.m. the prior night. Many tempted
me with interesting headlines or links
which I too frequently clicked on.
Post-Clutter, I enjoy seeing very few
new messages when I start the day.
With all my Clutter out of view, I
spend more time on what’s important
but can quickly skim Clutter periodi-
cally to find something of value or
train it.
Why all of this about Clutter? Be-
cause, the same is true of financial
clutter. Before joining HoyleCohen, I
used to watch CNBC regularly.
Eventually, I realized that it was not
relevant to what was most important
to me 99% of the time and had be-
come financial clutter. Today it is
much harder to avoid because it is
easier than ever for marketers to
reach high net worth individuals, re-
sulting in a proliferation of financial
clutter.
I want HoyleCohen to be part of the
solution, not the problem. We do this
in part by helping clients focus on
what’s really important – their goals,
concerns, family legacy, charitable
desires – so it’s easier to filter out fi-
nancial clutter. Increasingly, we will
use our Portal to share information
with clients and to consolidate and
organize what’s most important so we
better serve as the ‘easy button’ for
important wealth-related matters.
As we do so, we must also become
more active in soliciting feedback to
ensure that we are adding value and
not simply creating more clutter. I
hope that you – our clients, profes-
sional colleagues and friends – will let
us know what you find valuable, what
you want more of and what you deem
to be clutter so we can learn and serve
you better.
Elisabeth Cullington: Was recently selected to be a part of TD Ameritrade’s Human Finance Project. Elisabeth was featured at TD’s national conference in Orlando. To watch the full video that TD Ameritrade did on Elisabeth, click here.
Continued Feature Update from Page 1.
Emilie Hersh: We would like to congratulate Emilie on her recent achievement. Emilie was recently recognized as a 2016 San Diego Women of Influence winner! Her company ‘Unbuttoned Innovation’ won the prestigious “Emerging Women Owned Business Award” hosted by Connected Women of Influence in San Diego. Hundreds of participants represent-ing every industry possible also participated in the nomination. Congratulations, Emilie!
Important Disclosures
Clients in the News
Erwin Shustak: We are very happy to announce that Erwin has been selected as a 2016 SuperLawyer! Super-Lawyers select attorneys using a multiple phase selection process. The process includes research, peer nominations and evaluations. The final published list represents less than 5 percent of the lawyers in the state. This is also Erwin’s 6th time being selected. Congratulation, Erwin!
HC News