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Fall 2009
Fact
On October 14, 2009, the Dow Jones Industrial Average passed 10,000 points for the first time in a year, culminating a 53% gain since March. The Average first crossed 10,000 on March 29, 1999. During that same period, the real dollar prices of oil and gold have increased 255% and 197% respectively.
– Derived from "The Lost Decade of Stock Investing."Wall Street Journal. 2009.
Quote
"Vitally important for a man or woman is, first, to realize the value of education and then to cultivate earnestly, aggressively, ceaselessly, the habit of self-education"
– BC Forbes
Inside
Fact
On October 14, 2009, the Dow Jones Industrial Average passed 10,000 points for the first time in a year, culminating a 53% gain since March. The Average first crossed 10,000 on March 29, 1999. During that same period, the real dollar prices of oil and gold have increased 255% and 197% respectively.
– Derived from "The Lost Decade of Stock Investing."Wall Street Journal. 2009.
Quote
"Vitally important for a man or woman is, first, to realize the value of education and then to cultivate earnestly, aggressively, ceaselessly, the habit of self-education"
– BC Forbes
Inside
Proxy and Prospectus 
Analyzing the Value of Being an Active Investor
As the calendar rolls to fall, mail boxes become stuffed with Christmas cards, holiday party invitations, catalogues; and for investors, financial literature. Fall is the primary season for investors to receive fund prospectuses, proxy statements, and other updates. With the volume of mail received, many investors are left to wonder, "Does reading this literature really matter?"
Working with a financial planner provides investors with the opportunity to forgo many of the burdens of investment allocation. However, being an active investor by reading and acting on the materials provided by investment funds provides several benefits.
Beyond staying informed as to the performance of the fund, investors are also able to gain a better understanding of the investment strategies, mission, and important decisions made by the fund managers. In addition, active investors often times are able to voice their opinion through voting on issues ranging from fund leadership to selections of industries in which to invest. While reading all literature provided by investment funds is ideal, here are a few highlights to look for when reading:
Too much mail?
As a reminder, Waller Financial offers all of its clients the opportunity to go paperless through the Waller.com website. Visit www.waller.com and click on the “"Go Paperless" link at the top of the homepage. Contact your financial planner for additional assistance in going paperless.
Analyzing the Value of Being an Active Investor
As the calendar rolls to fall, mail boxes become stuffed with Christmas cards, holiday party invitations, catalogues; and for investors, financial literature. Fall is the primary season for investors to receive fund prospectuses, proxy statements, and other updates. With the volume of mail received, many investors are left to wonder, "Does reading this literature really matter?"
Working with a financial planner provides investors with the opportunity to forgo many of the burdens of investment allocation. However, being an active investor by reading and acting on the materials provided by investment funds provides several benefits.
Beyond staying informed as to the performance of the fund, investors are also able to gain a better understanding of the investment strategies, mission, and important decisions made by the fund managers. In addition, active investors often times are able to voice their opinion through voting on issues ranging from fund leadership to selections of industries in which to invest. While reading all literature provided by investment funds is ideal, here are a few highlights to look for when reading:
- Fund Prospectus – Prospectuses provide three basic pieces of
information to investors: investment strategies, investment
fees and historical performance. Financial planners invest
significant resources in analyzing these documents as the
basis of selecting funds for proper asset allocation. Active
investors may find all information valuable, but should pay
particular attention to the strategies section of the
document. Understanding the investment philosophy
and strategies in a fund allow the investor to determine
if the fund matches personal investment goals such as
selecting funds that are focused on environmental
sustainability.
- Proxy Statement – The proxy statement is a highly valuable source of data on investment fund operations. Proxy statements, as required by law, outline fund leadership, salaries, bonus plans, and any important financial declarations made by the fund. In addition, proxy statements often contain ballots for shareholder votes on important issues. While investors may sign away their rights to vote, voting on shareholder issues is critical in active investment. Issues ranging from proposed additions to the board of directors to decisions on asset allocation rules may be up for voting. Each investor should read the proxy statement to keep a close eye on fund operations to ensure they are in line with the investor’s financial and personal goals and values.
Too much mail?
As a reminder, Waller Financial offers all of its clients the opportunity to go paperless through the Waller.com website. Visit www.waller.com and click on the “"Go Paperless" link at the top of the homepage. Contact your financial planner for additional assistance in going paperless.