In This Issue:
Join Us at The MoneyShow in San Francisco Aug. 15-17
Join ICLUBcentral's Doug Gerlach as seasoned investing experts, financial gurus and investors from all regions gather Aug. 15-17 for The MoneyShow at the San Francisco Marriott Marquis. The free program includes investing luminaries who will provide insights on stock investment strategies, with panel discussions and on various approaches to stock investing and perspectives on factors that affect stocks, sectors and portfolios. Choose from over 200 workshops and special events. Doug's session on Friday, Aug. 16, will be "The Two Things You Must Know to Successfully Pick Stock." On Saturday, Aug. 17, he'll discuss "The Secrets of Small-Cap Investing." (Doug's the Editor-in-Chief of the SmallCap Informer newsletter.) Dennis Genord, BetterInvesting's director of member education and chapter development, will speak on Thursday, Aug. 15, and also on Saturday about "Empowering Individual Investors." Click here for more information or to register. If you can't attend, plan to watch the webcasts online. You don't want to miss such a great opportunity to enrich your investing knowledge.
Toolkit 6: Look at a Live Stock Study
Have you seen a live stock study using Toolkit 6? This software is a powerful aid in stock analysis, and what's more, ICLUBcentral's Doug Gerlach and other experts can show you how to make it work for you to enhance your results. If you missed the free online webinar this month showing a live stock study, you can still catch it through the webinar archives. Click here for the latest webinar and see a Toolkit 6 Live Stock Study.
Fund Management: How Much Do You Know?
A mutual fund's manager is the single most important individual influencing the success or failure of a mutual fund. The board of directors charges the manager with responsibility for carrying out a fund's objective, but the manager has considerable latitude in making specific decisions about how to manage the fund's assets.
Management information is listed in a fund's prospectus and annual report, and can also be found at financial websites.
It takes years to shape a fund portfolio, and a new fund manager who has been on the job less than five years has little to do with past results over the long haul. And one manager doesn't always get all the credit. Some funds employ a lead manager and one or more assistant managers. There are also funds that are managed by teams. If others play key roles in fund management, it is a good idea to evaluate how long each team member has been with the fund, because all team members bear some responsibility for the fund's performance.
New Fund Managers: A new fund manager generally likes to make changes and set up the fund's portfolio according to his particular philosophy. Therefore, a new fund manager is likely to sell quite a few of the companies in the fund's portfolio and buy new ones. Some fund families are known for switching managers around from fund to fund like players in a game of musical chairs. Be wary of funds with constantly changing management, which can lead to high portfolio turnover.
Sometimes a new manager is appointed who previously was an assistant manager for the same fund, and therefore may much of a fund's composition. Sometimes a new fund manager arrives with a good track record of running another fund.
In any case, it is useful to analyze the past performance of the fund a new manager previously ran. You may have to look beyond the fund report and call the fund company to ask about a new manager's background and experience, requesting his resume.
Management's Record: To assess a fund manager's record, try to get at least a 5-year history of a fund's net asset values, annual total return and the fund's total return in comparison with the S&P 500 or other appropriate index. This information is usually found in a fund's annual report or at financial news websites.
Keep in mind that even high-performing mutual fund managers don't always beat the index. And while the stock market typically outperforms other types of investments, there will be years when the entire market is down. This is where comparisons with general indexes are useful. What you should look for in a good fund manager is a track record that shows some stability and consistently outperforms an appropriate-comparison index during an extended period of time, such as five to 10 years.
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July 25, 2013
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We develop high-quality software products and web services for individual fundamental investors, and powerful accounting tools used by the majority of US investment clubs.
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Events Calendar:
Webinars led by Doug Gerlach:
First Tuesday of each Month: Toolkit 6 User Group
Second Monday of each Month: Lunchtime Learning
Third Tuesday of each Month:
New Investment Club Orientation
Doug Gerlach will also be speaking at the following events:
August 15-17, 2013 – The MoneyShow San Francisco
September 20-22, 2013 – BetterInvesting National Convention, Pittsburgh, PA
November 1-2, 2013 – BetterInvesting Puget Sound Investors Education Conference
November 15-17, 2013 – AAII National Convention, Orlando, FL
Submit Your Event!
Like 7-Eleven, we're not always doing business, but we're always open — go to the ICLUB Store and outfit yourself with the simple, yet powerful tools and services that smart investors have been using to grow their portfolios since 1989.
Got a Problem?
Support is here to help. You can reach them M-F, 9:30 AM-6:00 PM at 877-33-ICLUB (877-334-2582), or use the e-mail web form at ICLUB Support.
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