Client Story – Planning for Retirement
October 5, 2018
2018 Third Quarter Market Commentary
October 8, 2018

Investor Series – Price

The final “P” in our analysis pertains to how expensive a fund is. The main indicator of price is the expense ratio which is typically found in the prospectus. The main question in this section is if the expense ratio reported is an acceptable price when looking at its category peers. The notion we must consider as well is that not all asset classes are going to have a similar acceptable threshold. For example, large cap stocks have much more analyst coverage and are more closely followed than are small cap stocks. Because of this, small cap managers tend to have higher expenses for increased due diligence and research they must perform internally. In 2017, large cap funds as a group had a median fee level of 75 bps as compared to small cap funds who had a median fee level of 1%. Investors many times are rightly concerned about how expensive a fund is, but price isn’t everything however. We can see that while it’s important, it’s still only one category of consideration. One of the small cap funds we include in our portfolios is considered more expensive relative to its peers, however in recent years it has been in the top 1% of funds for the whole category when looking at performance. The focus on price should not be the only reason an investor chooses to skip a certain fund. It should be wrapped in as a complement to the rest of the analysis.

Griffin Sheehy, Financial Analyst

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Mark Shone CFPMark Shone, CFP
President

Phone: 925.472.0874
Mobile: 925-209-3771
Fax: 925-472-0884
E-mail: mshone@shoneassetmgmt.com

Mark Shone, CFP®, founder of Shone Asset Management LLC, is responsible for all aspects of Financial Planning and Asset Management at Shone Asset Management and works directly with clients of the firm. He has been in the business since 1988 and founded the firm in 2005 as a fee only financial planning and asset management business. Prior to founding Shone Asset Management, he was a Managing Director and Neuberger Berman and Lehman Brothers. Mark has a degree in Finance from California State University, Sacramento, competed his certificate in taxation at UCLA and completed a course of study at the Wharton School.

Mark enjoys helping families and clients map out the financial life they want to create and helping them by making smart decisions over time. He has extensive experience speaking on and guiding clients through topics such as retirement planning, preparing for the cost of education, investment allocation strategies, estate planning topics, insurance and behavioral finance. He is committed to helping clients maximize their full wealth potential.

In his spare time Mark enjoys golfing, is an avid sports fan and is a drummer for the band Stagefrite which plays cover songs from the 80’s to today.

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Gail Markham

Director of Client Service

Gail has worked in the Financial Services industry since 1983; as a Bank Manager, and as an Investment Advisor as well as Compliance Manager for major Wall Street firms.  She is a graduate of the University of the Pacific.

Gail is a long time resident of the East Bay.  She lives in Walnut Creek with Will, her husband of 26 years.  She has two children, Jack & Kelly who are college students.

Gail enjoys golf, hiking, traveling, gardening, wine and college basketball.

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Griffin Daniel Sheehy

I came on board with Shone Asset Management in 2016 and as Financial Associate, I provide support in the areas of investment planning, financial planning, and portfolio management. I am a graduate of Cal Poly San Luis Obispo’s Orfalea College of Business where I earned a Bachelor of Science of Quantitative Economics concentrated in Financial Management. Post-graduation, I went straight to work for Waddell & Reed, which is a large advisory firm that specializes in financial and investment planning. I started there in an assistant-type role until earning my Series 7 and Series 66 licenses and at that time promptly transitioned into an Advisor Associate role. Having those licenses allowed me to not only engage in full support on the client servicing side, but in the financial and investment planning process as well. This is where I learned just how critical developing, implementing, and constantly reviewing a solid all around plan is to the success of one’s financial goals. While in college, I interned at Northwestern Mutual in Sacramento where I earned my Insurance License and was educated in the value of managing the risk of unforeseen events in life. I also interned at a small commodities market research firm based in Petaluma, California called Streetwise Reports.

I am married and in my free time I enjoy outdoor activities with my beautiful wife like taking beach trips and hiking. I also enjoy playing sports in local leagues for baseball and basketball.