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Securus Financial utilizes the advisory services of Brookstone Capital Management as an investment advisor representative. Brookstone is a leading wealth management firm with an impressive track record in helping clients to preserve and build wealth. Securus Financial owes it to our clients that we do what is in their best long term interest with regards to their investments, and Brookstone Capital Management fits that bill. They bring a full range of investment options to our clients and provide top notch service. Brookstone Capital Management currently has over $2.3 billion in assets under management.

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Brookstone Capital Management (BCM) is a Registered Investment Advisor headquartered in Wheaton, IL and led by Dean Zayed, a well-known and respected investment professional. You may have even seen Dean on one of his frequent appearances on CNBC and Fox Business News.

Substantial Portfolio Declines Destroy Compounded Returns Don’t confuse “percentage” returns with DOLLAR returns

Investors are often asked to focus on annualized percentage returns, but this can divert them from the ultimate long-term goal: cumulative dollar returns. By not taking into account market downturns that can sometimes be masked by percentage return performance, it can be difficult to see the long-term effect market declines have on a portfolio’s ability to experience compounded growth.

This hypothetical example shows how Portfolio A saw its gains evaporate because substantial declines destroyed the ability to achieve compounding. Portfolio A had a +100% gain followed by a -50% loss, while Portfolio B had only a +65% gain, but followed by only a -15% loss. Both portfolios had the same net percentage gain of +50%.

However, over time, while Portfolio A experienced higher percentage gains, Portfolio B was able to limit its downward fluctuations during declining periods. As a result, Portfolio B benefits from compounded growth while Portfolio A makes no advancement after several years invested.

This hypothetical example is for illustrative purposes only and is not intended to project the performance of any specific investment or investment strategy and is not a solicitation or recommendation of any investment strategy. It is only designed to show the mathematical differences between substantial declines and less substantial fluctuations. It does not represent the trading of any actual account.

For a complete description of investment risks, fees and services, review the Brookstone Capital Management firm brochure (ADV Part 2A) which is available from your Investment Advisor Representative or by contacting Brookstone Capital Management.

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