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Press Release: Endowment Index® Q1 Update

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APPLETON, WI, April 12, 2017.  The Endowment Index® calculated by Nasdaq OMX® increased 4.95% (on a total return basis) for the quarter ended March 31st, 2017, closing at 1,125.13.   This compared to the S&P 500, which gained 6.05% for the same period.

Global markets have had a broad and favorable upward bias to start 2017. This was reflected in fifteen of the Index’s 19 components providing a positive return for the 1st quarter.  While emerging markets-diversified was the single best performing overall asset class (+11.74%) for the quarter, the Index components providing the greatest overall contribution to the Index’s positive performance were private equity (+1.02%), domestic equity (+0.92%), and international developed equity (+0.70%).  Negative performers included oil & gas, managed futures, commodities and international bonds, although the impact from these declines was minimal.

The index was reconstituted and rebalanced in early February, with some minor changes to several asset classes.  Overall, the allocation to alternatives increased by 1% while the overall bond allocation decreased by 1%.  Within those asset classes, venture capital increased while allocations to developed and emerging market debt, as well as distressed debt were reduced.

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Press Release: Endowment Index

By Endowment Index™, News No Comments

APPLETON, WI, April 13, 2016. The Endowment Index® calculated by Nasdaq OMX® increased 1.24% (on a total return basis) for the quarter ended March 31st, 2016, closing at 1,012.60.   This compared to the S&P 500, which gained 1.35% for the same period.

After ending 2015 at 1,000.17, the Index began a retreat in early 2016, reaching an intraday quarterly low of 909.44 on February 11th. Global recessionary fears, a slowdown in China, declining oil prices, and concerns of rising U.S. interest rates contributed to an early year selloff that impacted many asset classes within the Index. Beginning February 12th the Index began a steady recovery that continued through the remainder of the quarter. The Index’s intraday high occurred on March 30th at 1,016.85.

Thirteen of the Index’s 19 components provided a positive return for the 1st quarter. While gold was the single best performing overall asset class (+16.4%) for the quarter, the Index components providing the best overall return attributions were global metals & mining (+0.28%), hedge strategies (+0.26%), equity-emerging markets (+0.24%), and domestic real estate (0.19%). Of the 6 components that posted a negative return attribution, emerging markets-China (-0.60%) and international developed equities (-0.21%) were the most significant.

Visit EndowmentIndex.com to download an Index fact sheet or spreadsheet containing longer term performance information. You can also register to receive periodic Endowment Index® updates.

ETF Model Solutions, LLC designs ETF-based investment solutions for advisers, institutions, retirement plans and individual investors based upon the Endowment Investment Philosophy®. The firm is the investment manager for the Endowment Multi Asset ETF Collective Investment Fund, a Collective Investment Trust (CUSIP 26923F105) available for use in 401(k) Plans.

Contact: Tim Landolt, Managing Director, 920.785.6012.

Info: www.ETFModelSolutions.com or www.EndowmentIndex.com

Disclosure: Information presented is for informational and/or educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies, nor shall it be construed to be the provision of investment advice.  Past performance is not necessarily indicative of future results.  Investments involve risk and unless otherwise stated, are not insured or guaranteed.  Be sure to consult with a qualified financial

adviser and/or tax professional before implementing any investment strategies discussed herein.  ETF Model Solutions, LLC is registered as an investment adviser with the SEC.  ETF Model Solutions is an affiliate of Endowment Wealth Management, Inc., an investment adviser registered with the State of Wisconsin.  You cannot invest directly in an index. Indexes do not contain fees.  Performance information contained in this presentation is provided net of any underlying exchange-traded fund expenses, does not include any other fees or expenses.  Past performance is not necessarily indicative of future results. A copy of each firm’s respective disclosure document, Form ADV Brochure Part 2, is available upon request. 

Prateek Mehrotra Featured In Trusted Insight Cover Article

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Prateek Mehrotra, MBA, CFA®, CAIA®, Chief Investment Officer of Endowment Wealth Management, and its affiliate, ETF Model Solutions, is featured in an exclusive cover interview in the most recent issue of Trusted Insight Magazine. In the article, Prateek discusses his career path, along with the vision that lead to his co-founding of the two firms’ of which he serves as Chief Investment Officer, serving clients through a multi-family service model, and the firms’ investment approach.  You can read the article at Trusted Insight website (requires free registration to access).

Endowment Index 3Q 2015 Update

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The Endowment Index® calculated by Nasdaq OMX® declined 8.31% (on a total return basis) for the 3 months ended September 30, 2015. This compared to the S&P 500 Index, which declined 6.44% for the same period. The decline pushed the index into negative territory for the year, at -5.14%, vs. – 5.29% for the S&P 500 Index.

Concerns of a slowdown in China was a theme that impacted most global asset classes during the quarter. As a result, just 3 of the index’s 19 components provided a positive return for the period, including domestic REITs, domestic bonds, and international developed bonds. The gains were modest, providing little offset for the decline of other components. Of the constituents that declined, emerging markets-China, private equity, and domestic equity had the greatest impact on an attribution basis.

The Endowment Index® is a rules-based index that represents the asset allocation portfolio holdings of over 800 educational institutions managing over $500 billion in total assets. The Index’s current target allocation is 36% equity, 9% fixed income, 51% liquid alternatives and 4% liquidity/cash. There are over 30,000 underlying securities within the 19 sub-indexes that currently comprise the Endowment Index®.

You can obtain real-time pricing data on the Endowment Index® under the symbol “ENDOW” through major online quote providers including Google Finance. Some providers require a precursor, such as Yahoo!Finance (^ENDOW) or Schwab StreetSmart Edge ($ENDOW). The Morningstar® Index ID for the Endowment Index® is F00000TPG6.

Fed leaves Rates Unchanged

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This week saw one of the more widely anticipated Fed announcements of recent years as investors looked to see if the “zero” interest rate environment was going to be put behind us.  As was widely publicized yesterday, the Fed elected to do nothing, based upon concerns of an economic slowdown, pushing off the prospect of a rate hike.   First Trust’s economic team put out a report that provides the text of the Fed’s statement, along with their perspective of what we can expect moving forward.  Learn more.

Endowment Wealth Management® Named Finalist For Wisconsin Innovation Awards

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Appleton, WI.  August 13, 2015.  APPLETON, Wis.—ETF Model Solutions and its affiliate, Endowment Wealth Management have been named finalists for the Wisconsin Innovation Awards based on their development of the Endowment Index® (symbol: ENDOW) and related index-based investment strategies.  The Endowment Index® calculated by Nasdaq OMX® has created national awareness, assisted in the development of new strategic partnerships, attracted investors in the firm, and have allowed the firms to expand their respective client bases.  The firms have developed Endowment Index-based investment strategies for individuals and families, endowments and foundations, and retirement plans.

The Wisconsin Innovation Awards (“WIA”) seek to celebrate and inspire innovation. The WIA highlights and honors the development of groundbreaking and innovative ideas. By celebrating transformational ideas, the WIA hope to encourage an even greater environment of innovation by bringing innovators together from various business sectors (e.g. tech, food, healthcare, agriculture, nonprofits, education, government), and from throughout the State of Wisconsin.  The Wisconsin Innovation Awards are led by a steering committee of business, community and entrepreneurial leaders.  The second annual WIA ceremony will take place on August 18, 2015 at the Discovery World in Milwaukee.

ETF Model Solutions® designs ETF-based investment solutions for advisers, institutions, retirement plans and individual investors based upon the Endowment Investment Philosophy®. The Firm is the investment manager for the Endowment Multi-Asset Collective Investment Fund (CUSIP 26923F105), a Collective Investment Trust which can be added as an investment option in most 401(k) plans.

Endowment Wealth Management® is a fee-based investment advisor serving individuals and families, foundations and endowments, and retirement plans.   The firm seeks to build sustainable wealth solutions for its clients through the implementation of the Endowment Investment Philosophy®.

Contact:            Tim Landolt, MBA | Managing Director, ETF Model Solutions®   |  920.785.6012

Info: ETFModelSolutions.com | EndowmentWM.com| EndowmentIndex.com | WI Innovation Awards

Disclosure: You cannot invest directly in an index. Indexes do not have fees. Award recognition does not qualify as an endorsement of any particular index, investment firm, investment, or investment strategy. The firms do not make any solicitation payments to award sponsors in order to be nominated or to qualify for nomination of an award.

6 Topics to Discuss with Recent Graduates

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As new graduates leave college and transition into adult life, there are many aspects of their financial situations that will change. Here are some financial areas that you may want to talk about with recent grads.

  1. Develop a Discipline to Control Spending– Managing expenses will be one of the first financial tasks a new graduate will have to conquer. Creating a budget to monitor larger costs like housing and transportation, as well as smaller everyday expenses can help keep track of where money is being spent and can help identify unnecessary splurges.
  2. Saving for the Unexpected– The next goal for a recent graduate should be to save up an emergency fund that will cover 3-6 months’ worth of expenses in case of an unexpected expense or loss of employment. This can be difficult when student loan payments are due and getting a start on retirement savings is being constantly encouraged, but an emergency fund should be a high priority.
  3. Student Loan Debt– Most recent college graduates will begin their careers with a fair amount of student loans to pay off. Student loans or any other forms of debt that charge the highest interest rates should be paid off first. Just meeting the minimum payment may be the best option early on though as an emergency fund is built up and money is diverted towards retirement savings.
  4. Saving for Retirement– Once debt is under control, saving for the future, namely retirement, is the next big step. Starting early is crucial for young new grads as they have one major advantage; time. Taking advantage of their employer 401(k) plan with a company match is a smart place to start.
  5. Investing Long-Term– Retirement savings should be invested with a long-term view, as a recent graduate who starts saving in their first few years will allow that money to compound for the next 40+ years. Short-term market fluctuations, even drastic ones, should not be cause to panic.
  6. Credit Rating– A young adult will also want to familiarize themselves with their credit rating and how missing a loan payment or electricity bill could affect them when making a big purchase down the road, like a car or house.

All of these responsibilities will take some time to implement, but they will offer the recent graduates a good learning experience in balancing their short and long term financial goals.

Endowment Index™ +6.03% YTD Continues to Dominate S&P 500 (1.92%% YTD) in 2015

By Endowment Index™, News No Comments

Endowment Index™ YTD Results Benefit From Global Focus

One third of the way through 2015, the Endowment Index™, on a total return basis, is up 6.03%, outperforming domestically-focused equity indices such as the S&P 500 TR  (+1.92%), Nasdaq Composite PR (+4.34%).  For comparison, the Morningstar Moderate Target Risk has generated a +2.71 YTD result.

For comparison purposes, other YTD index results:

  • Russell 2000 TR +1.65%
  • Barclays US Aggregate Bond TR +1.24
  • MSCI All Country World Price Return (US$) +4.60%
  • MSCI EAFE Net Return (US$) + 9.16%
  • MSCI Emerging Market Price Return (US$) +9.57%
  • Morningstar Lifetime Moderate 2030 Target Date +3.37%
  • Morningstar Long-Only Commodity +0.92%

All return data as of 4/30/2015.  Source: Morningstar

The Endowment Index™ represents the investable opportunity for managers of portfolios utilizing the Endowment Investment Philosophy® or otherwise incorporate alternative investments within a comprehensive asset allocation strategy.  The Endowment Index™ measures performance for a multi-asset, globally-diversified, three-dimensional portfolio that includes Global Equity, Global Income, and Alternative Investments (like Private Equity, Hedge Funds and Real Assets).  The Index uses an objective, rules-based construction methodology based upon the portfolio allocations of over 800 educational institutions managing over $500 billion in total assets.  Each of the 19 sub-indexes that currently comprise the index are investable, and contained within those sub-indexes are over 30,000 underlying securities.  You can obtain real-time pricing data on the Endowment Index™ under the symbol “ENDOW” through major quote providers, including Google Finance. The Morningstar® Index ID for the Endowment Index™ is F00000TPG6.

Past performance is not necessarily indicative of future results. You cannot invest directly in an index. Indexes do not have fees.

Endowment Index™ Outperforms S&P 500 For First Quarter 2015

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Endowment Index™ Outperforms S&P 500 Index for 1st Quarter of 2015

Appleton, WI. April 14, 2015.  The Endowment Index™ calculated by Nasdaq OMX® increased 2.92% (on a total return basis) for the quarter ended March 31st, 2015.   This compared to the S&P 500, which gained 0.95% for the same period.

Fourteen of the index’s 19 components provided a positive return for the quarter.  On an attribution basis, the largest portion of the gains were provided by private equity (+0.70%), equity-emerging market/China (+0.68%), equity-international developed (+0.47%) and hedge strategies (0.31%). Only 5 components posted a negative return attribution during the quarter, three lowest of which were: global metals and mining (-0.11%), commodities (-0.10%), and gold (-.01%).

Visit EndowmentIndex.com to download an index fact sheet or spreadsheet containing longer term performance information or register to receive periodic Endowment Index™ updates.

Recent News

  • Endowment Index™ data is now available through InformaIS/Zephyr.
  • The Endowment Index™ was recognized as one of five finalists for Index of the Year by   ETF.com.  The other finalists were the S&P 500, MSCI Low-Carbon Indexes, Bloomberg Dollar Index, and the EMQQ Index.  The Bloomberg Dollar Index was awarded the honor.

ETF Model Solutions, LLC designs ETF-based investment solutions for advisers, institutions, retirement plans and individual investors based upon the Endowment Investment Philosophy®.  The firm is the investment manager for the Endowment Multi Asset ETF Collective Investment Fund, a Collective Investment Trust (CUSIP 26923F105) available for use in 401(k) Plans.

Link to PRNewswire

Contact:  Tim Landolt, Managing Director, 920.785.6012.

Info:  www.ETFModelSolutions.com or www.EndowmentIndex.com

Disclosure:  Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies, nor shall it be construed to be the provision of investment advice.  Past performance is not necessarily indicative of future results.  Investments involve risk and unless otherwise stated, are not insured or guaranteed.  Be sure to consult with a qualified financial

advisor and/or tax professional before implementing any investment strategies discussed herein.  ETF Model Solutions, LLC is registered as an investment adviser with the SEC.  ETF Model Solutions is an affiliate of Endowment Wealth Management, Inc., an investment adviser registered with the State of Wisconsin.  You cannot invest directly in an index. Indexes do not contain fees.  Performance information contained in this presentation is provided net of any underlying exchange-traded fund expenses, does not include any other fees or expenses.  Past performance is not necessarily indicative of future results. A copy of each firm’s respective disclosure document, Form ADV Brochure Part 2, is available upon request.

Award recognition does not qualify as an endorsement of any particular index, investment, or investment strategy. ETF Model Solutions, LLC does not make any solicitation payments to award sponsors in order to be nominated or to qualify for nomination of an award. Award criteria can be obtained from ETF.com