Rates, Performance & Markets (RPM) Tool
Compare a hypothetical composite portfolio to historical index returns in different rate environments
While past performance is not indicative of future results, knowledge of the past can help guide investment decisions. Our RPM Tool helps advisors better understand and articulate the role each investment type plays in a portfolio and provides the basis for a detailed discussion about the potential impact of different interest rate environments and market conditions on a portfolio.
Understanding the Environment
Market and interest rate conditions can drive how portfolios are structured, so it’s important to understand the potential impacts. Select the interest rate environment and market conditions you are interested in viewing. You will be able to change this selection later.
This tool is provided by RidgeWorth Investments for informational and discussion purposes only. The assertions in this tool are based on RidgeWorth’s opinion. This information is general and educational in nature, provided as general guidance on the subject covered, and is not intended to be authoritative. All information contained herein is believed to be correct, but accuracy cannot be guaranteed. This information and general market-related projections are based on information available at the time, and are subject to change without notice. This information may coincide or conflict with activities of the portfolio managers. It is not intended to be, and should not be construed as, investment, legal, estate planning, or tax advice. RidgeWorth does not provide legal, estate planning, or tax advice. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decisions.
Source: FactSet®, National Bureau of Economic Research as of 1/6/17.
Past performance is not indicative of future results. Performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.ridgeworth.com.
Methodology: Rising rate periods are defined as those with trough to peak yields that increased at least 33% over at least 12 months. Falling rate periods are defined as those with peak to trough yields that decreased at least 33% over at least 12 months. Recession is defined as a period between a peak and a trough. Bull markets are defined as times when the S&P 500 rose 20% or more without a 20% correction. Bear markets are defined as times when the S&P 500 fell 20% or more without a 20% rally. Sources: Bank of America Merrill Lynch, Bloomberg. Data pulled on 1/6/17.
All investments involve risk. There is no guarantee a specific investment strategy will be successful.
Bloomberg Barclays 1-3 Month Treasury Bill Index is the 1-3 Month component of the Barclays Capital U.S. Treasury Bill index which includes U.S. Treasury bills with a remaining maturity from 1 up to (but not including) 12 months.
Bloomberg Barclays U.S. Aggregate Index is an unmanaged broad based index designed to measure the US-dollar-denominated, investment-grade, taxable bond market. The index includes bonds from the Treasury, government- related, corporate, mortgage-backed, asset-backed and commercial mortgage-backed sectors.
Bloomberg Barclays U.S. Corporate High Yield Index measures the marked of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below, excluding emerging markets debt.
Credit Suisse First Boston (CSFB) Institutional Leveraged Loan Index is designed to mirror the investable universe of the $US-denominated leveraged loan market. Loans must be rated “5B” or lower; only fully- funded term loans are included; the tenor must be at least one year; and the Issuers must be domiciled in developed countries.
Russell 1000 Index is a market capitalization-weighted index, composed of approximately 1,000 of the largest companies in the U.S. equity markets.
Russell 1000 Growth Index is an unmanaged index composed of securities in the Russell 1000 Index, with higher than average price-to-book ratios and higher than average forecasted growth values.
Russell 1000 Value Index is composed of the securities in the Russell 1000 Index with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios, higher dividend yields, and lower forecasted growth values.
Russell MidCap Index is a market capitalization weighted index representing the smallest 800 companies in the Russell 1000 Index.
Russell Midcap Growth Index is an unmanaged index which measures the performance of those companies found in the Russell Midcap® universe with higher than average price-to-book ratios and higher than average forecasted growth values. The stocks are also members of the Russell 1000 Growth Index.
Russell Midcap Value Index is an unmanaged index which measures the performance of those securities found in the Russell Midcap universe with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value index.
Russell 2000 Index measures the performance of the small cap segment of the U.S. equity universe, including approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
Russell 2000 Growth Index is composed of the securities found in the Russell 2000 Index with a greater-than-average growth orientation. Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios.
Russell 2000 Value Index is an unmanaged index which is composed of the securities in the Russell 2000 Index with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios.
Investors cannot invest directly in an index.
Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company.