FSG performance results reported on this site were achieved in actual accounts managed by Financial Solutions Group LLC operating on the Fidelity Advisor Channel platform. These actual accounts serve as model portfolios for specific strategies or blends thereof as indicated where returns are cited. Performance results are adjusted to reflect net returns to clients after all fees and expenses including commissions, advisory fees, fund management fees, and redemptions charges, if any. Results shown for the S&P 500 index represent total return including dividends and excluding commissions. The Total Return index is calculated using data provided by Standard and Poor’s and prorating dividends. Most results shown were calculated independently and have not been audited. However, some results have been independently calculated and verified by an unaffiliated accountant. Where applicable, documentation is available by request.
Client portfolios over $50,000 are typically invested based on a blend of two primary strategies: Diversified and pure Fixed Income. Most clients utilize our Diversified Sector Program for at least a portion of their portfolio. Alternate strategies may be utilized for smaller accounts or for accounts domiciled outside of Fidelity Investments. Individual client strategy blend is determined by client’s age, risk tolerance, goals, and other assets as well as other factors. Increased risk offers the potential, but not the guarantee of higher returns. Conservative portfolios tend to be more stable but potential return is limited. The primary investment vehicles are no load mutual funds sponsored by Fidelity Investments with heavy emphasis on the Select (sector) Funds. Actual client returns will reflect the portfolio mix selected for the client. No two accounts will necessarily achieve the exact same returns, as there are factors that are unique to each account. However, whenever possible, every effort is made to transact in client accounts simultaneously with those in the model portfolios, at the same NAV with the same fees (if any). Reasons that actual returns in individual client accounts may differ from others or the model include:
A variety of other minor factors –
In most cases, clients should achieve returns similar to the mix of portfolios selected (after adjustment for fees) in accounts over $250,000 that have been established for over 90 days with no additions or withdrawals of funds during the period being measured. For example: Client A has a mix of 75% Diversified and 25% Fixed Income; in a year when the Diversified Sector model produces 15% (gross) and the Fixed Income Sector model produces 5% (gross), this client is likely to have a gross return of roughly 12.5% before advisory fees. Because advisory fees are charged quarterly, the difference between the gross return and the net return to the client will vary depending upon the point in the year when the returns are generated by each strategy.
Past performance is a poor indicator of specific future returns. It is however very useful in determining how a particular manager performs in different market environments. When evaluating the performance of a particular manager, it is important to include periods when the benchmark index was declining as well as periods when the index was rising. FSG performance over multiple bear and bull market periods vs. our benchmark indices is available by contacting our offices. Investors have the ability to achieve results similar to the benchmark indices by investing in an index fund or Index-tracking ETF, typically with lower fees.
It is our always the intention of FSG to minimize any negative effect on clients. Our success in that effort is subject to unanticipated market conditions. Consequently, Past Performance does not Guarantee Future Returns
Client portfolios over $50,000 are typically invested based on a blend of two primary strategies: Diversified and pure Fixed Income. Most clients utilize our Diversified Sector Program for at least a portion of their portfolio. Alternate strategies may be utilized for smaller accounts or for accounts domiciled outside of Fidelity Investments. Individual client strategy blend is determined by client’s age, risk tolerance, goals, and other assets as well as other factors. Increased risk offers the potential, but not the guarantee of higher returns. Conservative portfolios tend to be more stable but potential return is limited. The primary investment vehicles are no load mutual funds sponsored by Fidelity Investments with heavy emphasis on the Select (sector) Funds. Actual client returns will reflect the portfolio mix selected for the client. No two accounts will necessarily achieve the exact same returns, as there are factors that are unique to each account. However, whenever possible, every effort is made to transact in client accounts simultaneously with those in the model portfolios, at the same NAV with the same fees (if any). Reasons that actual returns in individual client accounts may differ from others or the model include:
Addition or Withdrawal of Client Funds - This is especially true for new accounts during the first ninety days after an account is opened. Portfolios are not adjusted instantaneously to correspond with the model. Investments are phased in or out, as opportunities occur during subsequent weeks in an attempt to optimize the benefit to the client. The occasional or periodic withdrawal or addition of funds by the client will distort the allocation within the account between asset classes resulting in performance results that very from the models.
Specific Blend of Model Portfolios - As distinct model performance will compound at substantially different rates of return, the actual total return in client accounts may vary from the presumed returns of the model mix. Client portfolios are rebalanced periodically (opportunistically) on an individual basis back to the target portfolio ratios. This has a smoothing effect similar to dollar cost averaging.
Taxable Status of Account - Whether funds are held in a taxable or non-taxable account will affect performance. Clients who have requested that their money market fund be maintained in tax free funds will usually have a slightly lower pre-tax return.
A variety of other minor factors –
- Waiver of all or some advisor fees.
- Different fee schedules based on asset size (FSG model returns are calculated according to the highest fees charged).
- Technical trading errors.
- Restrictions on fund switching (usually triggered by the addition or withdrawal of funds).
- Different commission rates based on account size. This is a fee generated by trading in ETFs primarily and is charged directly to the client by the brokerage. FSG does not participate in these commissions.
- Performance of securities transferred into accounts by clients and brokerage commissions generated by the sale of these securities.
In most cases, clients should achieve returns similar to the mix of portfolios selected (after adjustment for fees) in accounts over $250,000 that have been established for over 90 days with no additions or withdrawals of funds during the period being measured. For example: Client A has a mix of 75% Diversified and 25% Fixed Income; in a year when the Diversified Sector model produces 15% (gross) and the Fixed Income Sector model produces 5% (gross), this client is likely to have a gross return of roughly 12.5% before advisory fees. Because advisory fees are charged quarterly, the difference between the gross return and the net return to the client will vary depending upon the point in the year when the returns are generated by each strategy.
Past performance is a poor indicator of specific future returns. It is however very useful in determining how a particular manager performs in different market environments. When evaluating the performance of a particular manager, it is important to include periods when the benchmark index was declining as well as periods when the index was rising. FSG performance over multiple bear and bull market periods vs. our benchmark indices is available by contacting our offices. Investors have the ability to achieve results similar to the benchmark indices by investing in an index fund or Index-tracking ETF, typically with lower fees.
It is our always the intention of FSG to minimize any negative effect on clients. Our success in that effort is subject to unanticipated market conditions. Consequently, Past Performance does not Guarantee Future Returns