Important Notes and Disclosures


The information provided herein is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Asset classes and the proportional weightings in the strategies may change at any time without notice subject to the discretion of Windhaven.

Windhaven Investment Management, Inc. is registered as an investment adviser with the Securities and Exchange Commission (“SEC”). However, the SEC has neither approved nor endorsed Windhaven, its strategies or any of its marketing materials. Any representation to the contrary is a criminal offense.


Windhaven’s risk management process includes an effort to monitor and manage risk, but should not be confused with and does not imply low risk or the ability to control risk.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

There are risks associated with any investment approach, and Windhaven strategies have their own set of risks to be aware of. First, there are the risks associated with the long-term strategic holdings for each strategy. The more aggressive the Windhaven strategy selected, the more likely the strategy will contain larger weights in riskier asset classes, such as equities. Second, there are also risks associated with the Windhaven strategies’ shorter-term tactical allocations, which can result in more concentration toward a certain asset class or classes. This introduces the risk that Windhaven could be on the wrong side of a tactical overweight, thus resulting in a drag on overall performance or loss of principal.

Risk-Adjusted Return

1Risk-adjusted return: a concept that refines an investment’s return by measuring how much risk is involved in producing that return, which is generally expressed as a number or rating. Risk-adjusted returns are applied to individual securities, investment funds, and portfolios. There are several important risk measures, and each measure is unique in how it measures risk. Windhaven’s approach is a proprietary combination balancing compound annualized return, standard deviation (as measured by the Sharpe ratio), and maximum drawdown collectively at the strategy level. When comparing two or more potential investments, an investor should compare the same risk measures to each investment in order to get a relative performance perspective.


Windhaven and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.
Please refer to Windhaven’s ADV Part 2 for additional information.

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