Beacon Technology

Beacon Accounts: Sector

FACTSHEET

Facts & Fees

Summary

The Beacon Technology Account invests in high-tech businesses in the U.S. or outside of the U.S. The portfolio manager concentrates on computer, semiconductor, software, networking, and Internet stocks. The primary goal is long-term capital appreciation. The account does not seek current income, which is characteristic of growth stocks in the technology sector.

Benchmark: S&P 500 Information Technology (Sector)

Core Facts

Asset Class	Sector
Category	Technology
Expense Ratio ^[1]	0.0%
Commissions ^[2]	0.0%
Fee ^[3]	0.40%
Minimum investment ^[4]	$1000 US
Account number	B039
Account manager	Galleon Wealth Management
Region	Global
Market	Developed

Capitalization
	Value	Blend	Growth
LG
MD
SM

Style

Portfolio Composition

Portfolio composition by security (top holdings)

Top Holdings

Company Name	Forward Annual Div Yield	1yr Target Est	EPS Est Next Year	Forward P/E
Advanced Micro Devices, Inc.	-	40.57	1.11	43.39
NVIDIA Corporation	0.27%	239.06	7.23	33.79
Amazon.com, Inc.	-	2,167.61	26.95	69.88
Adobe Inc.	-	345.58	11.61	29.27
Microsoft Corporation	1.26%	166.97	6.07	26.58
Apple Inc.	1.02%	278.85	14.97	20.73
salesforce.com, inc.	-	193.25	3.10	58.13
Facebook, Inc.	-	240.86	9.14	23.86
Xilinx, Inc.	1.49%	107.35	3.60	27.63
Tesla, Inc.	-	328.34	5.86	81.60

Performance & Risk

Overall Risk

The risk rating is based on the account’s past performance as compared to mutual funds and/or ETFs within the same category. It represents a starting point from which investors evaluate if the core makes sense for their own risk tolerance, suitability, goals and objectives. It is not a buy or sell recommendation. There are many types of risk, including interest rate, market, political, and currency. Each type of risk can affect the value of the securities in your account.

Overview

Start Date	1/1/15
End Date	12/31/19
Initial Balance	$10,000
Periodic Adjustment	None
Rebalancing	Rebalance quarterly
Reinvest Dividends	Yes
Benchmark	Vanguard Information Technology ETF

Portfolio Performance

Metric	Beacon Technology	Vanguard Information Technology ETF
Start Balance	$10,000	$10,000
End Balance	$50,313	$24,942
End Balance (inflation adjusted)	$45,974	$22,791
CAGR	38.15%	20.06%
CAGR (inflation adjusted)	35.68%	17.91%
Stdev	20.69%	16.09%
Best Year	56.93%	48.61%
Worst Year	17.72%	2.46%
Max. Drawdown	-17.56%	-17.34%
Sharpe Ratio	1.63	1.16
Sortino Ratio	3.32	2.09
US Stock Market Correlation	0.85	0.88

Risk and Return Metrics

Metric	Beacon Technology	Vanguard Information Technology ETF
Arithmetic Mean (monthly)	2.90%	1.64%
Arithmetic Mean (annualized)	40.95%	21.56%
Geometric Mean (monthly)	2.73%	1.53%
Geometric Mean (annualized)	38.15%	20.06%
Volatility (monthly)	5.97%	4.64%
Volatility (annualized)	20.69%	16.09%
Downside Deviation (monthly)	2.89%	2.53%
Max. Drawdown	-17.56%	-17.34%
US Market Correlation	0.85	0.88
Beta (*)	1.18	1
Alpha (annualized)	11.69%	0.00%
R Squared	83.56%	100.00%
Sharpe Ratio	1.63	1.16
Sortino Ratio	3.32	2.09
Treynor Ratio (%)	28.74	18.64
Calmar Ratio	2.3	1.6
Active Return	18.09%	N/A
Tracking Error	8.85%	N/A
Information Ratio	2.04	N/A
Skewness	-0.16	-0.26
Excess Kurtosis	0.02	-0.37
Historical Value-at-Risk (5%)	-9.50%	-8.22%
Analytical Value-at-Risk (5%)	-6.99%	-6.00%
Conditional Value-at-Risk (5%)	-10.21%	-8.57%
Upside Capture Ratio (%)	142.24	100
Downside Capture Ratio (%)	81.05	100
Safe Withdrawal Rate	43.70%	28.27%
Perpetual Withdrawal Rate	26.30%	15.19%
Positive Periods	43 out of 60 (71.67%)	40 out of 60 (66.67%)
Gain/Loss Ratio	1.38	1.2
(*) Vanguard Information Technology ETF is used as the benchmark for calculations. Value-at-risk metrics are based on monthly values.

Asset Allocation

Category	Weight
US Stocks	90.91%
Intl Stocks	9.09%
US Bonds	0.00%
Intl Bonds	0.00%
Other	0.00%
Cash	0.00%

Equity Market Capitalization

Category	Weight
Large Cap	100.00%
Mid Cap	0.00%
Small Cap	0.00%

Stock Sectors

Category	Weight
Basic Materials	0.00%
Consumer Cyclical	9.09%
Financial Services	0.00%
Real Estate	0.00%
Consumer Defensive	0.00%
Healthcare	0.00%
Utilities	0.00%
Communication Services	0.00%
Energy	0.00%
Industrials	0.00%
Technology	72.73%
Capital Goods	9.09%
Miscellaneous	9.09%

Drawdowns (worst 10)

Rank	Start	End	Length	Recovery By	Recovery Time	Underwater Period	Drawdown
1	Oct-18	Dec-18	3 months	Mar-19	3 months	6 months	-17.56%
2	May-19	May-19	1 month	Jul-19	2 months	3 months	-11.47%
3	Jan-16	Feb-16	2 months	Apr-16	2 months	4 months	-10.77%
4	Feb-18	Mar-18	2 months	May-18	2 months	4 months	-7.22%
5	Jun-15	Aug-15	3 months	Oct-15	2 months	5 months	-4.45%
6	Mar-15	Mar-15	1 month	Apr-15	1 month	2 months	-4.37%
7	Jan-15	Jan-15	1 month	Feb-15	1 month	2 months	-4.12%
8	Aug-19	Sep-19	2 months	Oct-19	1 month	3 months	-3.48%
9	Nov-17	Dec-17	2 months	Jan-18	1 month	3 months	-2.18%
10	Jun-16	Jun-16	1 month	Jul-16	1 month	2 months	-0.97%

Rolling Returns

Year	Beacon Technology 3-year annualized return	Beacon Technology 5-year annualized return	Vanguard Information Technology ETF 3-year annualized return	Vanguard Information Technology ETF 5-year annualized return
2017	39.65%	N/A	17.88%	N/A
2018	35.72%	N/A	16.91%	N/A
2019	40.47%	38.15%	27.79%	20.06%

Definitions and glossary

Annual Returns

Annual Returns

Year	Inflation	Beacon Technology Return	Vanguard Information Technology ETF Return	Beacon Technology Balance	Vanguard Information Technology ETF Balance	Beacon Technology Income (%)	Beacon Technology Income ($)
2015	0.73%	28.26%	5.04%	$12,826	$10,504	0.88%	$88.02
2016	2.07%	41.52%	13.77%	$18,151	$11,951	0.86%	$110
2017	2.11%	50.04%	37.07%	$27,234	$16,381	0.75%	$136
2018	1.91%	17.72%	2.46%	$32,061	$16,783	0.59%	$162
2019	2.29%	56.93%	48.61%	$50,313	$24,942	0.53%	$170

Strategy	In order to achieve the primary goals of adding diversification, accessing growth opportunities, and accessing international opportunities, the portfolio management team might employ one or more of the following strategies: Global Macro, Event Driven, Long/Short Equity.
Style	Unless otherwise noted, all iCore accounts are actively managed. This means the portfolio manager actively pursues strategies that have the potential to beat the underlying benchmark(s).
Objectives	Investors often use sector investments for college and/or retirement planning, achieving growth and income, and/or long-term capital growth, and/or speculation and hedging.

Lowest Costs	Lower commissions, no ticket charges, no minimums, no technology, software, platform or reporting fees, low financing rates and competitive interest paid on idle cash balances.
Lowest Margin Rates	The lowest margin loan interest rates of any broker, according to the Barron's 2019 online broker review.
Smart Routing	Search for the best firm stock, option, and combination prices available at the time of your order, and seek to immediately execute your order electronically. Our clients received a net US dollar price improvement of $0.43 per 100 shares vs. the industry bid / offer.
Product Selection	Invest globally in stocks, options, futures, forex, metals, bonds, ETFs, mutual funds, EFPs, and hedge funds. Select from over 120 sub-accounts, including all asset classes and ESG investments.
Global Markets	Invest globally in stocks, options, futures, forex, bonds and funds from a single integrated account. 125 Markets, 31 Countries, 23 Currencies. Access market data 24 hours a day and six days a week to stay connected to all global markets. Convert currencies at market determined rates as low as 1/10 of a basis point, or create a position collateralized by a non-native currency. Fund your account in multiple currencies. Trade assets denominated in multiple currencies from a single account.
Currencies	Trade assets denominated in multiple currencies from a single account. Clients maintaining a margin account may change their base currency at any time through Account Management and may effect deposits or withdrawals in a non-Base currency. Base Currencies are available in AUD, CAD, CHF, CNH, CZK, DKK, EUR, GBP, HKD, HUF, ILS, JPY, MXN, NOK, NZD, RUB, SEK, SGD or USD. In addition, IB-India accounts are required to maintain a Base Currency of INR.

Galleon Flagship	Our premium account management services for investors with $100,000 or more in total household assets, and for investors who may need additional services, such as Trust & Estate, Philanthropic, and Financial Planning.
Online bill pay	Bill Pay allows Debit MasterCard® program participants to pay bills without the hassle of writing checks or paying for postage. It eliminates paperwork, and it facilitates the consistent execution of recurring payments. Bill Pay uses a secure ACH to electronically pay a merchant if the payee is included in our merchant directory.
Mobile Check Deposit	All deposits require use of IB Key for two-factor authentication. Funds are generally available within six business days after the deposit is approved and you can track your deposit via the Deposit History screen. This feature is currently available to US clients and for checks drawn on a US bank.
Phone Support	Get answers to general questions about your account Monday through Friday, 24 hours a day. Our dedicated team offers guidance and resources in financial planning, equity compensation, and wealth management, and trading basics.
Financial Adviser	You can consult with a dedicated Financial Adviser, or if you already have an adviser, we can consult with your current financial adviser to provide a plan that works for both of you.
Debit Master Card	Adding the Debit Mastercard® to your account is quick and easy. It provides you with the convenience of accessing your account funds anywhere Debit Mastercard® is accepted around the world, and it lets you spend or borrow directly against your account with no monthly minimum payments and no late fees.
Galleon Financial Planning	We develop professional financial plans for our clients to help them meet their financial needs today, and also plan for future goals. Working with a financial planner will help you come away feeling more confident knowing that you have the support you need to achieve your financial goals.
Galleon Flagship Business Services	Galleon business services help our business clients focus on creating growth and cash flow. We provide professional investment advice, portfolio management, and administration of company retirement plans.

Capital gains and dividends are taxable	Sector accounts invest in businesses that operate in a particular industry (or sector) of the economy. Unless assets are held in an IRA or other type of retirement account, capital gains and income from dividends are taxable in the U.S.
Donor-Qualified	Beacon accounts are not donor-qualified. [explain]
IRA-Qualified	IRA and other types of retirement accounts are tax-deferred accounts. Depending on your investment objectives, investing in Sectors may be appropriate for helping investors achieve long-term goals.

Galleon WebTrader	An HTML-based platform in a clean and simple interface that works from behind a firewall. Non-managed accounts can trade stocks, options, futures, Forex, funds, bonds, warrants and more on over 125 markets worldwide, all from a single account.
Order Types and Algo's	Supports over 60 order types, from the most basic limit order to advanced trading to the most complex algorithmic trading, to help you execute a wide variety of trading strategies.
Sophisticated Risk Management	Real-time market-risk management and real-time monitoring provide a comprehensive measure of risk exposure across multiple asset classes around the globe and real-time data that gives you the edge you need to react quickly to the markets.
Trading Platforms	The Galleon Wealth Management trading platforms is professionally designed to help investors optimize their online trading speed and efficiency. Managed accounts have limited access to the platform, which allows investors to view all account activity, charts, and other market data.
Advanced Tools	Navigate risk in real-time using a market-risk management platform that provides a comprehensive measure of risk exposure across multiple asset classes around the globe. Use the Short Stock Availability tool to view indicative rates and search the real-time availability of shortable stocks. Option Trader offers a simple yet powerful trading tool that lets you view and trade options on an underlying.
Comprehensive Reporting	Statements and reports include real-time trade confirmations, margin details, transaction cost analysis, sophisticated portfolio analysis, tax optimization and a variety of other supplemental reports. Include outside accounts and assets held elsewhere to create a truly comprehensive view of your complete financial portfolio and wealth.
Outstanding Mobile Trading	Superior, lighting-fast mobile trading, including charting, analytics, news, research, full financial data, and execution. For all mobile types including iPhone, Android, etc.
Trading Alerts	Receive mobile, email, or text alerts when your portfolio reaches certain levels.

Financial Strength and Stability	As of January 1, 2020, equity capital exceeds $7.9 billion. 81.5% of custodian publicly traded equity is owned by employees and affiliates. Strong capital position, conservative balance sheet, and automated risk controls protect our clients from large trading losses.
Privacy	We take your privacy very seriously. We have implemented several internal policies to help protect your identity. See our privacy policy for details.

Webinars	An extensive program of free webinars. Watch, listen, and ask questions from your home or office computer as webinar instructors clearly describe technology, trading, and markets around the world. All webinars are recorded so if you can't attend a live webinar, you can experience it on demand at your own convenience.
Certificates and Courses	Take a course to explore stocks, options, futures and Forex trading, or get up to speed quickly on the Galleon Wealth Management Trading Platform, including how to use online trading tools, setting up a paper-trading account, and much more.

Rated #1

Our custodian was rated best online broker in 2019, and a top online broker for nine consecutive years by Barron's.

For 42 years Interactive Brokers, LLC has been building electronic access trading technology that delivers real advantages to traders, investors and institutions worldwide. Interactive Brokers Group and its affiliates' equity capital exceeds $ 7.9 billion, executing 797,000 trades per day.

ESG Data

ESG Accounts invest in companies that operate businesses with socially desirable products and services, and incorporate Environmental, Social, and Governance (ESG) factors into investment decision-making. Our technology allows investors to view highly-detailed ESG data about each company (when made available).