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 Russell 3000 Index (IWV) benchmark. Previously the benchmark portfolio used was the Schwab MarketTrack Balanced Portfolio(SWBGX), but because the SWBGX contains about 60% stocks and 40% bonds, it was decided that it would be preferable to compare our all stocks covered calls portfolio against a commonly used all stocks benchmark.
1. One-Month Result (June 2008):
At market close on 06/30/2008, the total Covered Calls Advisor Portfolio (CCAP) value was $237,128.74, a $16,268.08 decrease in the overall portfolio value compared with the $253,396.82 at the end of May(05/30/2008).
CCAP June 2008 Absolute Return = -6.4%
($237,128.74-$253,396.82)/$253,396.82
Benchmark Comparison: June 2008 Absolute Return for IWV
= -8.1%
($74.90-$81.54)/$81.54
2. 2008 Year-to-Date Results (Jan 1st through June 30th, 2008):
CCAP 2008 Year-to-Date Absolute Return = -5.6%
($253,396.82-$257,886.51)/$257,886.51
Benchmark Russell 3000(IWV) 2008 Yr-to-Date Absolute Return = -11.3%
($74.90-$84.40)/$84.40
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 Russell 3000 (IWV) benchmark during the same time period.
CCAP 2007 Absolute Return = +3.2%
($257,886.51-$250,000.00)/$250,000.00
Benchmark (IWV) 2007 Absolute Return = -1.2%
($84.40-$85.43)/$85.43
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 Russell 3000(IWV) 2007 Annualized Return = -4.1%
[($84.40-$85.43)/$85.43]*(365/108 days)
This Advisor's Overall Market Meter continues to indicate 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.
