The first quarter of 2015 can be characterized by a single word, “whipsaw”. Stock markets fell in January, rose in February, and declined again in March, while bond markets did essentially the opposite. Most broad equity market indexes ended the quarter with positive gains, and KH portfolios weathered the ride well. Below we discuss the first quarter performance of our composites. This update should be read in conjunction with the disclaimer discussion at the end.
In Q1’15, a composite of our KH Global Growth portfolios, adjusted to reflect our maximum fee, rose 3.08%. Global Stocks, measured by the ACWI (All Country World Index), rose 2.44%, while the S&P 500 index of U.S. stocks rose 0.95%.
Over the ten months for which we have composite return data, adjusted for our maximum fee, our KHGG composite returned 4.93%. The global stock index increased 2.65% over the same period.
In Q1’15, a composite of our KH Capital Preservation portfolios, adjusted to reflect our maximum fee, rose 0.84%. U.S. bonds, measured by the Barclay’s Aggregate Index, rose 1.6%. Broad CPI over the period fell about -1.4%, while the core measure (ex-food and energy) rose about 0.5%.
Over the nine months for which we have composite return data, adjusted for our maximum fee, our KHCP composite returned 2.52%. U.S. bonds increased 3.6% over the same period. Core CPI rose 1.2% and the broad CPI declined -1.5% over that time.
In Q1’15, a composite of our our KH Global Tactical portfolios, adjusted to reflect our maximum fee, rose 3.7%. Global stocks rose 2.44%, and the S&P 500 rose 0.95%.
Over the eight months for which we have composite return data, adjusted for our maximum fee, our KHGT composite returned 4.59%. Global stocks rose 1.91% over the same period.
KH 70/30 Blend:
In Q1’15 our blend of 70% KHGG and 30% KHCP, adjusted to reflect our maximum fee, returned 2.45%. A blend of 70% Global Stocks and 30% U.S. Bonds returned 2.2%.
Over the eight months for which we have composite return data, adjusted for our maximum fee, our KH 70/30 blend composite returned 3.46%. A blend of 70% global stocks and 30% US bonds returned 2.5% over the same period.
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 at KilterHowling 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 composite 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.