|
|
|
Year
|
Lumbard
Investment Counseling
|
Comparative
Benchmark**
|
|
|
Average Balanced Account
|
(Stocks, Bonds, Cash)
|
|
1990*
|
5.23%
|
(0.93%)
|
|
1991
|
17.06%
|
21.70%
|
|
1992
|
11.75%
|
7.60%
|
|
1993
|
22.84%
|
10.20%
|
|
1994
|
(0.99%)
|
(0.20%)
|
|
1995
|
19.65%
|
25.60%
|
|
1996
|
8.64%
|
14.30%
|
|
1997
|
15.29%
|
17.79%
|
|
1998
|
11.50%
|
14.44%
|
|
1999
|
(1.05%)
|
15.63%
|
|
2000
|
7.91%
|
(11.76%)
|
|
2001
|
9.59%
|
(7.59%)
|
|
2002
|
4.52%
|
(13.10%)
|
|
2003
|
18.66%
|
22.9%
|
|
2004
|
14.47%
|
7.20%
|
|
2005
|
3.99%
|
3.15%
|
|
2006
|
13.11%
|
10.04%
|
|
2007
|
7.19%
|
7.20%
|
|
2008
|
(1.94%)
|
(22.98%)
|
|
*1990 was a partial year
|
|
These figures, calculated by our custodians (US Bank and the Harris Bank), summarize the performance of accounts larger than $500,000. As such, they do not comply with AIMR standards, which demand the calculation of performance for all accounts managed by the firm.
The performance information provided by the banks does not include the effect of fees. Accounts smaller than $500,000 are assessed fees of 1.1% each year, and a smaller percentage is applied to larger accounts. The fees cause a reduction in the returns experienced by our clients.
The effect of fees can be seen in the performance of a small account that joined us several months after we launched this firm. In October of 1990 the account was valued at $100,000, and since then it has always paid a 1% fee. Thanks to the good graces of our wonderful client there have been no other additions or withdrawals in 19 years. On August 31, 1999 the account was valued at $228, 039, and ten years later—on August 31, 2009—it stood at $514,672, up from $446,064 at the beginning of the year.
These averages do not include the performance of accounts managed, since mid 2002, by John M. Convery, Jr., CFA. John is a Chartered Financial Analyst, and an investment adviser registered with Lumbard Investment Counseling at the SEC. He has been a member of our investment advisory board since 1990.
**The comparative benchmark is comprised of: Nasdaq Composite: 24%, S. & P. 500: 36%, Lehman Intermediate Tax Exempt Index: 33%, and U.S. Treasury Bills: 7%. Prior to 1998, the figures shown are for the average of the professionally-managed balanced accounts (stocks, bonds, cash) measured by Indata.
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|
