Performance

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Performance Quick Review (Net of Fees)
As of 10/31/2014
HCM Managed Account Strategies
Investor Lifestyle Portfolio (ILP) Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
ILP ETF Conservative ETFs 4.87% 10.91% 5.13% 5.01%
ILP ETF Balanced ETFs 12.39% 17.68% 6.03% 4.72%
ILP ETF Growth ETFs 19.67% 24.78% 5.31% 4.39%
Investor Lifestyle Portfolio (ILP) Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
ILP MF Conservative Mutual Funds 0.67% 10.91% 5.24% 5.01%
ILP MF Balanced Mutual Funds 12.75% 17.68% 2.82% 4.72%
ILP MF Growth Mutual Funds 24.08% 24.78% 1.24% 4.39%
Active Lifestyle Portfolio (ALP) Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
ALP Conservative Mutual Funds 10.57% 7.38% 6.73% 6.91%
ALP Balanced Mutual Funds 15.73% 14.07% 7.96% 8.08%
ALP Growth Mutual Funds 20.80% 21.11% 9.11% 9.25%
All American Programs Holdings 2013* HCM
2013* Bench 2014 YTD HCM
2014 YTD Bench
All American Conservative Mutual Funds 6.41% 4.22% 9.92% 6.91%
All American Balanced Mutual Funds 8.21% 8.46% 9.26% 8.08%
All American Growth Mutual Funds 9.96% 12.85% 8.61% 9.25%
All American Aggressive Mutual Funds 12.62% 19.98% 7.58% 10.97%
Viper 2 Programs Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
Viper 2 Conservative ETFs, Mutual Funds 6.21% 7.38% 2.25% 6.91%
Viper 2 Balanced ETFs, Mutual Funds 7.40% 14.07% 1.06% 8.08%
Viper 2 Growth ETFs, Mutual Funds
11.07% 21.11% -0.09% 9.25%
Viper 2 ETFs 15.65% 32.37% -1.69% 10.97%
Charles Schwab Programs Holdings 2013 HCM
2013 Bench 2014 YTD HCM
2014 YTD Bench
CS ETF Conservative ETFs, Mutual Funds
4.40% 7.38% 3.57% 6.91%
CS ETF Balanced ETFs, Mutual Funds
6.10% 14.07% 3.44% 8.08%
CS ETF Growth ETFs, Mutual Funds
8.08% 21.11% 2.57% 9.25%
Profit Push Programs Holdings 2013 HCM
2013 Bench 2014 YTD HCM
2014 YTD Bench
Profit Push-Lg & Mid Lg, Mid Cap Stocks 41.28% 35.60% 8.57% 6.44%
Profit Push-Sm & Mid Sm, Mid Cap Stocks 40.58% 38.82% 0.50% 1.90%
HCM Dividend Sector Index Plus Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
HCM Dividend Sector Index Plus Div-Paying Stocks n/a na 11.55% 10.97%
HCM All Weather Program Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
HCM All Weather ETFs, Mutual Funds
2.91% 32.37% 6.36% 10.97%
HCM Fixed Income/Bond Programs Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
HCM Bond Plus Mutual Funds 8.53% -2.02% 4.43% 5.12%
Horizon Bond Mutual Funds 2.36% -2.02% 8.63% 5.12%
HCM Aggressive Growth Programs Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
International Plus ETFs 10.45% 22.78% 3.24% -2.81%
RYX-PSR Mutual Funds 0.12% 32.37% 17.31% 10.97%
FID-PSR ETFs, Mutual Funds 45.32% 32.37% 5.81% 10.97%

401(k), 403(b), 457 Plans
HCM 401(k) Optimizer® Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
HCM 401(k) Optimizer® Varies by Plan 25.73% 28.23% 3.25% 6.85%
American Trust Holdings 2013 HCM 2013 Bench 2014 YTD HCM
2014 YTD Bench
HCM Conservative Mutual Funds 6.37% -1.42% 5.54% 5.24%
HCM Conservative Growth Mutual Funds 11.70% 7.38% 5.45% 6.91%
HCM Moderate Growth Mutual Funds 15.65% 14.07% 5.36% 8.08%
HCM Growth Mutual Funds 19.68% 21.11% 5.26% 9.25%
HCM Aggressive Growth Mutual Funds 25.54% 31.59% 5.09% 10.86%

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* Partial year (4/1/2013-12/31/2013)
Performance shown is past performance and does not guarantee future results. Investment return and principal value fluctuate so an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than quoted.

There is no certainty that any investment or strategy (including the investments and/or investment strategies recommended by the advisor), will be profitable or successful in achieving investment objectives or equal to past performance levels. Please work with your financial advisor to determine which investment program is consistent with your financial objectives and risk tolerance. This service is available for a cost in addition to those associated with the underlying securities. Most Howard Capital Management (HCM) programs are actively managed and as such have an above-average turnover rate, which could have a negative impact upon the net after-tax gain experienced by an individual client in a taxable account. To discourage short-term investing and excessive trading, many mutual funds impose short-term redemption fees that range from 0.5% to 2.0%. Although HCM programs that trade mutual funds seek to avoid these fees, they may occasionally be incurred because of the active management strategy being utilized.

Not every HCM-BuyLine® buy and sell will result in a profitable trade. There will be times when following the indicator results in a loss. However, there have been situations in the past in which HCM reduced clients’ exposure to equities during market downturns by following an HCM-BuyLine® signal, thereby preserving capital. An important goal of the BuyLine® is to outperform the market on a long-term basis. The reason is the mathematics of gains and losses. A 30% loss takes a 43% gain to return to the previous portfolio value.

The HCM-BuyLine® is a reactive indicator, not a proactive one. It will not catch the first 5 – 10% of a bull or bear move. Ideally, it will avoid most of the downtrends and catch the vast bulk of the uptrends. There may be times when the use of the indicator will result in a loss when we re-enter the market. Other times there may be a modest positive impact. When severe downtrends occur, however, such as in 2000-2002 and 2007-2008, it has the potential to make a significant difference in portfolio performance.

Naturally, there can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. All investment approaches have the potential for loss as well as gain. There is no certainty that any investment or strategy (including the investments and/or investment strategies recommended by the advisor), will be profitable or successful in achieving investment objectives. Please work with your financial advisor to determine which investment program is consistent with your financial objectives and risk tolerance. This service is available for a cost in addition to those associated with the underlying securities.

Returns that are based on actual implementation of the strategy calculated monthly use representative client accounts, and in some cases all client accounts that strictly trade the strategy of the HCM Program. Representative accounts are accounts managed solely with the HCM Program strategy that typically have no additional deposits, withdrawals or other transactions during the month. HCM 2013 and 2014 YTD Program returns based on actual client data include: HCM All Weather, HCM Bond Plus, Horizon Bond, Profit Push-Lg & Mid, Profit Push-Sm & Mid, HCM-TC, FID-PSR, RYX-PSR, All American Aggressive, All American Growth, All American Balanced, All American Conservative, All American Income, ALP Growth, ALP Balanced, ALP Conservative, ILP MF Growth, ILP MF Balanced, ILP MF Conservative, CS ETF Growth, CS ETF Balanced, and CS ETF Conservative.

HCM Program returns that are based on model portfolios held at FolioFN prior to 1/1/2014 are: ILP ETF Growth, ILP ETF Balanced, ILP ETF Conservative, International Plus, Viper 2, Viper 2 Growth, Viper 2 Balanced, and Viper 2 Conservative.

Performance results of the HCM 401(k) Optimizer® are based on the actual experience of the first two clients utilizing the HCM 401(k) Optimizer® program, both of whom participate in the City of Bryan, Texas’ 457 plan at ICMA-RC. These two clients, who began using the HCM 401(k) Optimizer® in April 2008, adhere to the recommendations produced by the HCM 401(k) Optimizer® and gave HCM access to their results. Results for other users of this program are not available because HCM does not know if the participants applied the recommendations to their accounts in a timely manner. These results are presented only as an example, and are not intended to indicate that a client will achieve the same or even similar results. Not all plans have the same choices of funds available, so results will differ depending on which choices are available. Results will also differ depending on the size of the initial balance (the higher the initial balance, the higher the net returns) and how accurately a client follows the advice of the HCM 401(k) Optimizer®.

HCM Program returns that are based on hypothetical data are: American Trust programs, Security Benefit (SFR®) programs and Security Benefit (SecurePoint) programs. These results were achieved through the retroactive application of a model that was designed with the benefit of hindsight. Model results have inherent limitations, particularly the fact that these results do not represent actual trading and may not reflect the impact that material economic and market factors might have placed on the advisor’s decision-making if the advisor were actually managing the client’s money. Backtesting, used in calculating results during the initial period stated above, involves a hypothetical reconstruction, based on past market data, of what the performance of a particular account would have been had the advisor been managing the account using a particular investment strategy. Backtested performance results are purely hypothetical and do not reflect actual trading in clients’ accounts. These results should not be viewed as indicative of the advisor’s skill and do not reflect the performance results that were achieved by any particular client. During this period, the advisor was not providing advice using this model and client’s results were materially different.

HCM's performance results are net of all fees and reflect the reinvestment of all income. All performance results are unaudited and have not been independently verified. No current or prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended by the advisor), will be profitable or equal to past performance levels. The actual performance of an individual client’s portfolio may be lower or higher than the performance of the HCM portfolio strategy due to differences in timing of contributions and withdrawals, account start date and actual fees paid. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio. All investment strategies have the potential for profit or loss. Past performance is not a guarantee of future investment success.

Each program uses one or a combination of the following benchmarks. Please click on a specific program link above to view the comparable benchmarks. The S&P 500 Monthly Reinvested Index, which is a capitalization-weighted index of 500 stocks with dividends reinvested. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Barclays Capital US Aggregate Total Return Index, which represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors and subdivided into more specific indices that are calculated and reported on a regular basis. Prior to November 1, 2008, this index was published by Lehman Brothers. MSCI EAFE-ND, which is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. It consists of 22 developed market country indices, and includes dividends net of withholding taxes. All Indexes are unmanaged investment measures and are not available for investment purposes.

Howard Capital Management, Inc. (HCM) offers its investment methodology through multiple programs that may invest in stocks, mutual funds or exchange traded funds (ETFs). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will either be suitable or profitable for a client’s investment portfolio. Investment returns will fluctuate and are subject to market volatility due to general market and economic conditions and perceptions, so that an investor’s shares when redeemed may be worth more or less than their original costs. The net asset value per share of this HCM program will fluctuate as the value of the securities in the portfolio changes. There are unique potential risks associated with the specific asset classes that a mutual funds or an ETF represents. ETFs are subject to risks similar to those of stocks. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. Investments in smaller companies typically exhibit higher volatility. In addition to the normal risks associated with investing, narrowly focused investments typically exhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise. High-yield bonds may be issued by companies which are highly leveraged, less creditworthy or financially distressed. Although these investments generally provide a higher yield than higher-rated debt securities, the high degree of risk involved in these investments can result in substantial or total losses. These securities are subject to greater risk of loss, greater sensitivity to interest rate and economic changes, valuation difficulties, and a potential lack of a secondary or public market for securities. The market price of these securities can change suddenly and unexpectedly. Commodities markets have historically been extremely volatile. Inverse funds should lose money when their benchmark indexes rise – a result that is opposite from traditional mutual funds. Inverse funds also entail certain risks, including inverse correlation, leverage, market price variance and short sale risks. Foreign investments generally incur greater risks than domestic investments and may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Mutual funds are sold only by prospectus. Please carefully consider the investment’s features and objectives, potential risks, charges and expenses, and risks and policies of the underlying portfolios before investing. Each product’s prospectus contains this and other information, and can be obtained from your financial professional.

We provide investment advisory services to the HCM Tactical Growth Fund ("the Fund"), a mutual fund registered under the Investment Company Act of 1940. The Fund seeks long-term capital appreciation through investments in (i) domestic equity securities of any market capitalization, (ii) investment companies (including mutual funds that use leverage), closed-end funds and exchange traded funds ("ETFs"), (including ETFs that use leverage), and (iii) cash and cash equivalents. We will be entitled to an annual advisory fee equal to 1.25% of the Fund's average daily net assets paid on a monthly basis.

We may recommend investments in the Fund for other advisory client accounts, including accounts for owners, officers, and investment adviser representatives associated with our firm. If you have engaged us for discretionary management services, we may invest a percentage of your assets in the Fund without further approval from you. Because we receive compensation from the Fund, we have a financial incentive to invest client assets in the Fund or to recommend that clients invest in the Fund. However, we will only make such investments and/or recommendations where we believe it is consistent with our fiduciary duty and your investment objectives. We will earn fees from the Fund and fees from you for investments made in the Fund. For ERISA assets invested in the Fund, the advisory fee on such assets will be offset by the amount of the management fee paid to us by the Fund. At our discretion, we may offset a portion of your advisory fee against the fees and expenses you may otherwise pay to the Fund.

You should refer to the prospectus for a complete description of the fees, investment objectives, risks and other relevant information associated with investing in the Fund. Refer to the Investment Discretion section below for additional disclosures on our discretionary authority to manage your investment account. Securities held in separate accounts, including accounts for owners, officers, and other individuals associated with our firm, may also be the same securities as those purchased by the Fund.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Howard Capital Management, Inc. Howard Capital Management is registered as an investment adviser with the SEC and only transacts business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.