Welcome to Pincus Perspectives, a quarterly newsletter providing updates on the market and our company. Our goal is to make this newsletter informative for our readers as it relates to both GA Pincus Funds and the economy as a whole. We LOVE referrals, so please forward this email along to your friends. Thanks for reading!
The first quarter of 2017 was filled with exuberance for the pro-business possibilities President Trump promised to deliver. Many people were under the impression that a Republican controlled government would quickly eliminate business regulations and lower business and personal taxes. However, as was seen with the failed repeal of the Affordable Care Act, while the Republicans have the trifecta (House, Senate, President), their members’ political desires are not aligned with one another. This quarter, the US and global stock markets rose dramatically as investors priced in the benefits of the massive tax cut Trump has promised. It is our belief at GA Pincus Funds that unless Trump can start acting presidential and find a way to unite not only his Republican party, but the Democratic party, it will not only be unlikely that he will be able to change the US tax system, but also it will be difficult for him to pass any other significant business-friendly bills during his presidency.
While the rise in the US equity markets was dramatic, it was largely without volatility. The Dow Jones Industrial Average broke 20,000 and 21,000 while experiencing both a 12-day win streak and an 8-day losing streak. To put that in perspective, the longest win streak on record was 13 days in 1987 and the longest losing streak was 12 days in 1968. While the market has been streaky, there have only been two days with a move greater than +/- 1.00%. Basically, the global equity markets are optimistically treading water in a wait and see environment. Should Trump continue to falter in his ability to unite his party, it is likely that a stock market correction will ensue. Should Trump find a way to bring politicians together, the market will continue its hike upwards.
GA Pincus Funds continues to believe that a diverse portfolio of ETFs comprising numerous different correlated and uncorrelated asset classes will stabilize and improve our client's returns. We develop ETF portfolios that suit our clients needs based on their individual risk tolerances. By constructing an allocation using our unique mix of securities and actively managing those securities through the use of our proprietary algorithm, GA Pincus Funds provides its clients with a blended exposure to the world economy. Not all quarters will be perfect, but our overall goal is to produce annual net returns that outperform each client's blended benchmark by 1.0% with individual quarterly returns that outperform each client's benchmark by 0.25%. Clients who began the quarter with GA Pincus Funds returned 3.67% to 5.80% net (after fees).
During Q1, 2017 Brokerage firms across the United States lowered their trading fees. The new cost to buy and sell non-commission free ETFs at TD Ameritrade is $6.95, which represents a drop of 30%. This 30% cost savings will be translated directly to our clients in the form of additional profits!
Additionally, many of the largest US ETF issuers (Vanguard, Schwab, iShares) have lowered the fees on a significant selection of their ETFs. This drop has lowered our clients' annual ETF management fees by as much as 25%!
As the race to zero continues, the potential profitability of the algorithmic strategy utilized by GA Pincus Funds will accelerate.
Effective early in the second quarter of 2017, GA Pincus Funds will be opening a second office in downtown Chicago! If you currently live in the area or will travel through, we encourage you to stop by our River North office. In addition to our new office in Chicago, we are also currently in the process of registering our firm in New York. As our business continues to grow we hope to add more state registrations and offices to this list.
. X = Office
Check out one of our clients showing off her client-only swag. Thanks Barb!
GA Pincus Funds Overview
GA Pincus Funds is a Texas Registered Investment Advisor that creates Separately Managed Accounts for our clients using an investment strategy comprised of three main tenets:
GA Pincus Funds Actively Manages all accounts; investing exclusively in Low Cost ETFs; while allowing all investors Transparent 24/7 real-time access to their accounts.
Our longest running account, split 45% fixed income and 55% equities, has outperformed all but one of its benchmark indices since inception.
Net of all fees, this separately managed account has outperformed its benchmark 12 out of the past 15 quarters, annually, and since inception