Custom Benchmark Description: The Custom Benchmark is comprised of an equal investment in each of the funds or sub accounts available within the product universe (except money market and fixed accounts). Further, we assume the "portfolio" is rebalanced daily creating the un-weighted return of the universe itself. As of January 1, 2004, the Custom Benchmark has been restated historically due to funds now closed to new investors and funds not traded by Niemann Capital Management, Inc. because of trading restrictions. This benchmark has been changed to improve comparability.
Definition of Standard Deviation: Measures the degree of variation of returns around the average return of the investment. The lower the volatility of investment returns, the lower the standard deviation will be. It is used as a measure of total risk; the lower the better.
Composite- Assumes reinvested dividends: The combined asset-weighted performance of all accounts within a given Niemann strategy. Each strategy has its own composite and does not contain any accounts from another strategy. Composite performance numbers are net of all fees and reported in arrears.
NCM believes that the comparison of the composite's performance to a particular market index is inappropriate. The portfolios generating the composite's performance are not nearly as diversified as the indices shown. Because of the differences between the composite's strategy and the composition of those indices, NCM believes that these indices are not comparable to the composite's investment strategy and it is not aware of any other index that is directly comparable.
S&P 500 Index- Assumes reinvested dividends: The S&P 500 Index is a cap weighted, unmanaged group of 500 stocks as selected by the Standard & Poor's Publishing Company. They are usually the 500 largest companies in terms of market capitalization and are chosen to represent the entire market's value. The S&P 500 is used by many institutional investors as a performance benchmark representing the "stock market" return.
Blended 60/40- Assumes reinvested dividends: The blended 60/40 is represented by the Lipper Balanced Fund Index. The Lipper Balanced Fund Index tracks funds whose primary objective is to conserve principal by maintaining, at all times, a balanced portfolio of both stocks and bonds. Typically, the stock/bond ratio ranges around 60%/40%. Note: Prior to 1/1/2010, the blended 60/40 was represented by a blend of 60% Wilshire 5000 and 40% Barclays Aggregate Bond Index. The Lipper Balanced Fund Index historical performance has been restated to provide a more accurate comparison of portfolio performance.
Nasdaq Composite- Does not assume reinvested dividends: The Nasdaq Composite is a market capitalization price only index that tracks the performance of domestic common stocks and ADRs traded on the National Market System.
MSCI EAFE (Europe, Australasia, and the Far East) Index- Does not assume reinvested dividends: The MSCI EAFE is widely accepted as a benchmark for international performance. The EAFE is a group of foreign securities tracked by Morgan Stanley Capital International. Note: Prior to 1/1/2010, MSCI EAFE performance was represented by DWS EAFE Equity Index Fund. The MSCI EAFE historical performance has replaced previously reported history to provide a more accurate comparison of portfolio performance.
Dow Jones Industrial Average (DJIA)- Assumes reinvested dividends: The DJIA is a price-weighted average of 30 actively traded blue chip stocks, primarily industrials. The most widely used indicator of the overall condition of the stock market.
Russell 2000- Assumes reinvested dividends: The Russell 2000 measures the performance of the smallest 2,000 companies in the Russell 3000 Index. The Russell 3000 is composed of the 3000 largest U.S. companies by capitalization.
Wilshire 5000- Assumes reinvested dividends: The Wilshire 5000 Total Market Index represents the broadest index for the U.S. equity market, measuring the performance of all U.S. headquartered equity securities with readily available price data. The index was named after the nearly 5,000 stocks it contained when it was originally created, but it has grown to include over 6,500 issues, reflecting the growth in U.S. equity issues as a whole. Past performance does not guarantee future results. Given the inherent volatility of the securities markets, it should not be assumed that investors will experience returns, if any, comparable to those shown here. Any stock market transaction can result in either profit or loss. Additionally, the performance of Niemann's profiles should also be viewed in the context of the broad market and general economic conditions prevailing during the periods covered by the performance information. Market and economic conditions could change in the future, producing materially different returns. Investment strategies may be subject to various types of risk of loss including, but not limited to, market risk, credit risk, interest rate risk and inflation risk. In addition, strategies with international capabilities are subject to risks including, but not limited to, currency fluctuations, economic instability and political instability. The foregoing data were prepared by NCM and have not been compiled, reviewed or audited by an independent accountant. NCM believes that the results were generated with an investment philosophy and methodology that it expects to continue to use, but future investments will be made under different economic conditions and in different securities. In particular, through April 1, 2010, the performance shown does not include investment in exchange-traded funds. Performance after that date may include investment in exchange- traded funds and, as a result, may differ materially. The results do not reflect performance in all economic cycles. Please visit us online at www.ncm.net or call 1-800-622-1626 for current performance information or for a complete list and description of Niemann's composites.
Performance results are presented net of transaction costs and Niemann's actual management fees. Niemann's annual management fees may vary from 1% to 2.3%. Additionally, mutual funds (including exchange traded funds) and variable annuities (Funds) charge various fees, all of which are disclosed in the Funds' prospectuses annually, along with any potential trading restrictions. Such fees are borne by shareholders and are reflected in the net asset values of the Funds. Some Funds also charge short-term redemption fees and excess transaction fees (Special Fees), that are billed to shareholders at the time of the event causing the fee. Clients pay these fees in addition to Niemann's advisory fees. In selecting Funds in which to invest client assets, Niemann considers the nature and size of the fees charged by the Funds. Niemann selects a Fund only if Niemann believes the Fund's performance, after all fees, will meet Niemann's performance standards. Consequently, Niemann may select Funds that have higher or lower fees than other similar Funds, and that charge Special Fees. When deciding whether to liquidate a Fund position, Niemann will take into consideration any Special Fees that the Fund may charge. Niemann may decide to sell a Fund position even though it will result in the client being required to pay Special Fees. In addition, overall performance may be affected by fees charged by the account custodian.
Performance results and comparative benchmarks assume reinvestment of dividends & income when noted.
Please see individual benchmark definitions for details. All profiles & reports have been prepared solely for informational purposes, and are not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security or instrument or to participate in any particular trading strategy. Performance shown for each Niemann strategy includes all actual, fee-paying, fully discretionary accounts managed by Niemann using that strategy. Each composite does not accurately present the performance of any specific account, which depends on investment timing and weighting, among other factors, that vary from account to account. Individual account performance may differ from the composite. Each account included in the composite is added after it has been under active management for at least one full month. A closed account is included through the last full calendar month that it was actively managed.
Niemann, its affiliates or its employees may have positions in and may affect transactions in securities and instruments mentioned in these profiles and reports. Some of the investments discussed or recommended may be unsuitable for certain investors depending on their specific investment objectives and financial position. The benchmarks to which Niemann compares its performance do not represent actual trading.
Niemann is an SEC-registered investment advisor that provides active third-party management for managed accounts. Niemann offers management in a variety of brokerage strategies, as well as variable annuity and variable universal life insurance products. Niemann is not affiliated with any broker/dealer, and works with multiple broker/dealer channels and their associated financial professionals to distribute its products and services. Please check with your financial advisor for more details about Niemann and Niemann's product offerings.
To request a copy of Niemann's current Part 2 of Form ADV, and/or Niemann's Annual Full Disclosure Presentation, please contact Richard West @ 800.622.1626 or email compliance@ncm.net. Please contact your financial advisor to request a copy of his/her current Part 2 of Form ADV and a copy of his/her broker/dealer's current applicable disclosure statement.
From time to time, Niemann or its affiliates may make available to associated persons of investment advisors or broker/dealers (each, an "Associate") certain communication materials, such as these materials, to be used with an Associate's clients that the Associate may refer to Niemann. No such materials may be modified in any manner without Niemann's prior written consent. If such consent is granted, with respect to such modified materials, the Associate is solely responsible for complying with any filing or approval requirements of FINRA or any other regulatory authority or self-regulatory authority to which the Associate may be subject.
