One-month, year-to-date, and prior year performance results of the Covered Calls Advisor Portfolio (CCAP) are presented below. In each instance, CCAP results are compared against the benchmark portfolio which is the Schwab MarketTrack Balanced Portfolio (SWBGX).
1. One-Month Result (May 2008):
At market close on 05/30/2008, the total Covered Calls Advisor Portfolio (CCAP) value was $253,396.82, a $6,897.73 increase in the overall portfolio value compared with the $246,499.09 at the end of April(04/30/2008).
CCAP May 2008 Absolute Return = +2.8%
($253,396.82-$246,499.09)/$246,499.09
Benchmark Comparison: April 2008 Absolute Return for SWBGX = +2.2%
($16.79-$16.42)/$16.42
2. 2008 Year-to-Date Results (Jan 1st through May 31st, 2008):
CCAP 2008 Year-to-Date Absolute Return = -1.7%
($253,396.82-$257,886.51)/$257,886.51
Benchmark (SWBGX) 2008 Year-to-Date Absolute Return =
0.0%
($16.79-$16.79)/$16.79
3. Prior Year Results (2007):
The Covered Calls Advisor Portfolio (CCAP) was initiated on September 14th, 2007 with a beginning balance of $250,000. The CCAP balance at year-end (12/31/07) was $257,886.51. Below are the returns of the CCAP for this 2007 timeframe compared with the results of the SWBGX benchmark during the same time period.
CCAP 2007 Absolute Return = +3.2%
($257,886.51-$250,000.00)/$250,000.00
Benchmark (SWBGX) 2007 Absolute Return = +0.7%
($16.79-$16.68)/$16.68
The corresponding annualized return for the 108 days the CCAP existed in 2007 (between Sept 14, 2007 and Dec 31, 2007) was:
CCAP 2007 Annualized Return = +10.7%
[($257,886.51-$250,000.00)/$250,000.00]*(365/108 days)
Benchmark (SWBGX) 2007 Annualized Return = +2.2%
[($16.79-$16.68)/$16.68]*(365/108 days)
This Advisor's Overall Market Meter shows that a SLIGHTLY BEARISH investment posture is appropriate at this time. The corresponding covered calls investing approach is to write near-month primarily slightly in-the-money covered calls.
