Monthly Performance Report for
Net Current Yield
Yield and Return
- Snider Method Yield
- Snider Method Return
- S&P 500 Return
|Yield Summary||Year to Date|
|Interest & Dividends|
|Net Current Yield|
|Contributions/Distributions This Month|
|Cumulative Net Current Yield|
The market value of all the securities in your portfolio plus the cash.
Asset management fees that you incurred, but haven't been billed yet.
The Net Current Yield as an annualized percentage of your Stake. Obtained by taking your Net Current Yield for the month, dividing it by your Stake for the month and multiplying the number by 12.
The purchase price of all the securities in your portfolio plus the cash.
Fees the broker charges to take your stock and option orders to the market.
The difference between the purchase price and sale price of your stock once the position is closed.
Cumulative Net Current Yield
The sum of each month's Net Current Yield since Snider Advisors began managing your account.
Interest & Dividends
Interest earned from cash in the account (or margin interest charged by the broker if the account is in margin). Plus dividends paid as a result of owning specific stocks.
Net Current Yield
The income from option premiums, interest and dividends, plus the realized gain (or minus the realized loss) from stocks in all closed positions, minus commissions paid for stock and option transactions and management fees. This amount does not equal your taxable income.
All your deposits to the accounts managed by Snider Advisors minus any withdrawals you have made from these accounts. If you pay your fees directly to Snider Advisors, these fees are considered contributions to your account.
The cash derived from the sale of options expiring in October 2008. These options were sold in the previous Trade Day.
Your initial investment plus any subsequent investments and minus any withdrawals, plus interest and dividends, plus the profit from any closed position, minus asset management fees. Commissions reduce the profit from closed positions.
The amount of income you need to show on your tax return (for taxable accounts). This is calculated using different rules than the Current Yield.
Unrealized Loss (or Gain)
The difference between the purchase price of a security and the price you could get by liquidating the security.
|Jesse Anderson, CFA|
The Fine Print
The yield calculation is different than the return calculation shown by most investment advisors. The yield is approximately equal to the total return if and when a position closes. While the position is open, there is typically some amount of unrealized loss. The total return measurement would include these losses and so would be lower than the yield. The rules of the Snider Investment Method prohibit selling stocks at a loss, but this does not limit or prevent the accumulation of unrealized losses which are not included in the yield calculation. These unrealized losses could persist indefinitely and may never be reflected in your net current yield.
The yield includes option premiums, interest, dividends, and realized gains or losses from closed positions, but excludes unrealized gains or losses from open positions. Brokerage commissions are deducted before calculating both the gross and net yield. The net yield has the asset management fees deducted. The percentage yield is the yield for the month divided by the stake multiplied by 12. The stake is all contributions minus withdrawals, plus the profits or minus the losses from any closed positions. For a complete discussion of the calculation of yield, please see the Performance Discussion page on our website.
The yield figures are unaudited and are subject to change. The information contained herein is current as of the date hereof, but may become outdated or subsequently may change. Past performance is no predictor of future results. All investments involve risk, including possible loss of principal.
Please Update Asset Management Agreement
We recently added a new electronic contract tool to our website to capture your signature and store all our contracts. It will allow us to keep your contract language consistent across all levels of service and quickly provide notifications of updates to your agreement.
Most of our agreements date back to when you originally signed up for Asset Management services. That means for some clients it was done on paper back in 2002! Due to rule changes, recommendations from compliance consultants, and best practice recommendations from regulators, we've made many slight adjustments to the contract to keep it up-to-date. In combination with some language adjustments and our new electronic contract tool, we are asking you to update your agreement. You can follow this link to complete the process.
Keep in mind, there are NO changes in the fees or terms of your service.
If your profile and suitability information is out of date, you will also be asked to provide any updates. As an SEC-registered investment advisor, we are required to know our client and receive regular updates about their financial situation and investment objectives.
Thank you in advance for your prompt attention to this matter. And of course, we truly appreciate your business and on-going support.Update Agreement
The previously unimaginable COVID-19 virus will forever scar 2020. 2021 will begin in the midst of 2020's carnage, but with optimism and hope for an end to the pandemic soon.
My note will focus on how COVID-19 impacted investments and, in particular, the Snider Investment Method. From an investment standpoint, that side of the story is both positive and optimistic in contrast to the devastation the virus has created. It is heartbreaking to think over 400,000 U.S. people have lost their lives. Sadly, millions more must deal with the loss of loved ones. 2020 was a terrible year for our country and worldwide for the physical and economic damage done by the virus.
In the four weeks between February 2020's Trade Day and March's expiration, the stock market dropped over 30%. The selloff was the largest monthly decline in our company's history and the most rapid descent from all-time highs to a bear market in the history of the stock market. If the market is going to drop, doing it all in a single month is ideal from a Snider Method perspective. With plenty of cash in the portfolio, we were well-positioned to handle an extended bear market.
As it turns out, it may go down as the shortest bear market in history. The low point of the year was March 24, our Trade Day. With concern and fear at their peak in my career, we did exactly what we had done every previous month. We had the Snider Method, and that was not the time to let our emotions influence our decisions. Since that day, markets have charged higher and higher, with the Method having some of the best months in over a decade.
Today markets sit at or near all-time high levels. Volatility, a core component to option premiums, remains high with uncertainty still surrounding the economic recovery. As the year progressed, we kept earning more and more option premium along with closing many positions each expiration. It was a good year for the markets in the face of a pandemic but an even better year for the Snider Method.
2020 was unpredictable. No one predicted the virus or its impact on our lives. In the deepest depths of the decline, no one expected the speed or the ceiling of the recovery. I am incredibly grateful we had a strict set of rules to follow and the results achieved from our well-defined plan.
It is more evident now than ever before that the economy and the stock market are very different. Many small and large businesses will never reopen, hundreds of thousands have lost their lives, and millions of people have lost their jobs, yet the stock market has done great. Through multiple stimulus packages, our government hopes to keep the economy rolling long enough for us to return to growth. So far, the trillions of dollars have done their job.
Speaking of government, as I write this year's note, our country is successfully executing another peaceful transition of power. In recent weeks we were all skeptical if that could actually happen. Amazingly, the election turned out to be the 2nd biggest story of 2020. As with the economy, you can't draw connections between politics and the stock market. Whether you are happy or upset with the election results, I'm confident this country will continue to move forward just like it has in all our history.
I can't end this note without once again paying tribute to our founder, Kim Snider. Because of the pandemic, Kim and I spoke more frequently in the months leading up to her death. The solid foundation that she built has allowed our company to grow and our clients to thrive in challenging markets. She will be greatly missed, but her legacy will live long into our future.
We will face more challenges in our future. Let's hope they get easier, but I'm pleased we are working through this one together. Thank you for your trust and ongoing business.
P. S. Your 2020 tax documents will be released in the coming weeks. We will email all clients their forms as soon as they are available and we've verified their accuracy. Retirement account holders can expect to see their 1099-Rs in early February if they had a distribution in 2020. Taxable account holders will receive their 1099-Combined and Form 8949 in late February or early March.