WHAT ANNUALIZED RATE OF RETURN IS REASONABLE TO EXPECT?
GTM goal is to achieve an annualized rate of return that will exceed that of the S&P 500 Index over each stock market cycle, typically four to six years. Only one in four professional money managers produces investment results that even equal that of the unmanaged S&P 500 Index.* In addition, funds “invested” in the Index are exposed to market risk 100 percent of the time, including periods such as the market crash of 1987. In contrast, we expect that funds we manage will be out of the market and in a money market mutual fund a significant percentage (25% or more) of the time during most years. During the 10 year-period 1985 through 1994, accounts managed by GTM would have been “in the market” approximately 70 percent of the time and “out of the market” in a money market mutual fund approximately 30 percent of the time.
