We published a review of year-end performance in January. Find it here: 2014 Performance
January 2015 had enough volatility that we thought a quick review of performance might be helpful.
Global Stocks, measured by the ACWI (All Country World Index), declined -1.54% during the month of January, while the S&P 500 index of U.S. stocks fell -3%.
A composite of KHGG accounts, adjusted to reflect our maximum fee, rose 0.92% over the same period.
Over the eight months for which we have composite return data, adjusted for our maximum fee, our KHGG composite returned 2.16% vs. a decline of -1.33% for the global stock index.
In January, as markets were volatile, bond prices surged, and our CP portfolio rose less than the bond market.
U.S. bonds, measured by the Barclay’s Aggregate Index (“AGG”) rose 2.1% in January. CPI through January has not been released, but the trend has been flat to slightly negative owing to falling energy prices. A composite of KHCP accounts, adjusted to reflect our maximum fee, rose 1.08% in January.
Over the seven months for which we have composite return data, adjusted for our maximum fee, our KHCP composite returned 2.64% vs. 4.0% for U.S. bonds.
In January, a composite of our our KH Global Tactical portfolio, adjusted to reflect our maximum fee, rose 3.87% while global stocks declined -1.54% and the S&P 500 declined -3%.
Over the six months for which we have composite return data, adjusted for our maximum fee, our KHGT composite returned 4.26% while global stocks declined -2.04%.
KH 70/30 Blend:
In January our blend of 70% KHGG and 30% KHCP, adjusted to reflect our maximum fee, returned 0.91% compared to the a blend of 70% Global Stocks and 30% U.S. Bonds, which returned 0.29%.
Over the six months for which we have composite return data, adjusted for our maximum fee, our KH 70/30 blend composite returned 1.77% while a blend of 70% global stocks and 30% US bonds returned 1.13%.
Disclaimer: Past performance is not an indication of future performance or results. The information presented here is relevant only to these disclaimers and covers only the accounts in the composites noted and shall not be construed as indicating future results or outcomes.
The performance discussed here is for specific KH account composites of live, actual client accounts. Fees range from 0% on assets (employee accounts) to our maximum fee of 1% per annum. KH calculates the blended fee of the composite and then adjusts the performance to reflect the maximum fee of 1%, thus it is our intent to demonstrate performance of actual accounts net of the maximum fee any client will pay to work with KilterHowling. Performance is net of any transaction, fund or ETF operating expenses. Not all client accounts are placed into the composites presented here. Thus, client performance may differ from the composite due to cash flows, taxes, timing, or certain positions that are not part of KH portfolio solutions. KH is happy to discuss and explain any KH client performance differences between accounts and the composite performance. References to “global stocks” or “the global stock index” refer to the MSCI All Country World Index, or ACWI, unless otherwise noted. References to inflation refer to the Consumer Price Index, data taken from the Bureau of Labor Statistics monthly release, unless otherwise noted.