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Sincerely,
Investment Advisors:
Conservative
Balanced
Balanced Growth
Growth
Aggressive
Domestic Equity
28%
35%
40%
47%
64%
International Equity
8%
13%
19%
24%
28%
Domestic Fixed Income
50%
38%
28%
17%
0%
Alternative Investments
7%
9%
10%
10%
7%
Money Market 8% 6% 4% 2% 1%
Total
100% 100% 100% 100% 100%
Target Volatility* 6% 8% 10% 12% 14%
*Target Volatility is our estimate for the annual standard deviation of portfolio returns.
Source: Wisco Investment Management LLC
33%
30%
25%
20%
15%
16%
13%
10%
8%
5%
6%
1%
0%
0%
-5%
3% 4%
-7%
3Q16
2Q16
1Q16
4Q15
3Q15
YTD16
2015
2014
2013
2012
-10%
Quarterly Returns
Source: Dow Jones U.S. Broad Stock Market Index and Wisco.
INTERNATIONAL EQUITY
20%
15%
17%
10%
3%
0%
4%
Quarterly Returns
3%
3%
2%
-1%
-1%
-12%
-2%
3Q16
2Q16
1Q16
4Q15
3Q15
YTD16
2015
2014
2013
-2%
2012
3Q16
2Q16
1Q16
4Q15
3Q15
YTD16
2015
2014
2013
2012
-3%
0%
0%
0%
-15%
2%
1%
1%
-6%
-10%
6%
5%
3%
0% 0%
-3%
-5%
6%
6%
7%
7%
5%
-20%
7%
Quarterly Returns
14%
ALTERNATIVE INVESTMENTS
The Dow Jones-UBS Commodity Index decreased
5% in the quarter. In agriculture, grain prices
dropped in the face of what appears to have been
favorable growing conditions in the United States.
Corn prices declined 6%1, while Soybean prices
decreased 19%1. Going forward, we feel it makes
sense to be investing in grains given how depressed
prices are when compared to their 2008 levels.
After a strong first half of the year, Gold prices
declined 1%2. Silver prices continued to gain
ground increasing 2%3 in the quarter, the metal
is up 38%3 so far in 2016. Finally, Crude Oil prices
decreased 1%4 in 3Q16, as the oil market has
started to trade in a tighter $40 to $50/barrel range
over the last quarter. Since the start of 2015, Crude
Oil is down 11%4.
We continue to believe alternative investments are
an important component in a broadly diversified
MONEY MARKET
Wisco keeps a modest money market allocation
in all of our portfolios. The current yield of the
Schwab Money Market is 0%. Low Federal Funds
rates have held down short-term yields. Should the
Federal Reserve increase short-term interest rates
this return could turn positive, however, we continue
to believe Money Market yields will stay low for an
extended period of time.
1. Return calculation based on the near future contract as quoted in the Wall Street Journal.
2. Return calculation uses ETFS Physical Swiss Gold Shares (SGOL) as a proxy for gold.
3. Return calculation uses iShares Silver Trust ETF (SLV) as a proxy for silver.
4. Return calculation uses Cushing, OK WTI spot price FOB as a proxy for oil.
Wisco Investment Management LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend
to make an offer or solicitation for the sale or purchase of any specific securities product, service, or investment strategy. Investments involve
risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser, tax professional, or attorney before
implementing any strategy or recommendation discussed herein.
402 Gammon Place, Suite 380 Madison, WI 53719 Office 608.442.5507 Fax 608.237.2206