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Disclosure
1. ORGANIZATION
Berkshire Asset Management, Inc. is a Registered Investment Adviser under the Investment Advisors Act of 1940. Berkshire Asset Management, Inc. manages portfolios for individuals and institutions. The firm is also a general partner of two investment partnerships. All composites AIMR compliant, Deloitte Touche (June 1998) completed AIMR Level II verification audit on equity composite: Report available upon request.
2. PERFORMANCE RESULTS: METHODOLOGY
Performance results are presented gross of management fees. A fee schedule is available upon request.
Results are calculated using time-weighted total return, with use of accrual accounting for fixed income securities since inception. Accrual accounting for equity securities began August 1994.
Client liquidity and cash flow needs determines whether or not dividends and interest are reinvested back into the portfolio. All index data assumes reinvestment of interest and dividends at the rate of return of the Index.
The composites are constructed on an asset-weighted basis using beginning of the quarter market values.
Balanced portfolio segments are included in single asset composites and include an allocation of cash to the performance of the segments.
Performance results presented are calculated quarterly with geometrically linked annual returns.
Trade date accounting is used.
Results are net of all transaction costs and custody fees. Investment management fees have an effect on the actual results obtained by a client. Assume a client places
$1,000,000 under our management and we achieve a 12% compound average annual return over a ten year period. If an advisory fee of 1% is applied each year for
the ten year period and deducted from the return, resulting compound average annual return would be reduced from 12% to 10.89%. The ending value of the portfolio would be $3,105,848 excluding fees and $3,074,790 including the deduction of such fees.
Berkshire does not place a minimum size restriction as to inclusion into composites. No non fee paying portfolios are included.
A complete list of Berkshire Asset Management's composites is available upon request.
3. ELIGIBILITY POLICIES FOR INCLUSION IN COMPOSITE
All fee paying fully discretionary accounts are included in at least one composite.
Two full quarters must pass from the client's start date before a new account is included in the composite.
Accounts no longer under management of Berkshire Asset Management, Inc. will cease to be included in future quarterly composites after the last full quarter preceding the termination date.
4. RISK MEASURE
Berkshire Asset Management, Inc. has calculated the standard deviation of returns of accounts included in the composite to allow the user of this data to estimate the
Ability of Berkshire Asset Management, Inc. to implement a strategy across the portfolios it manages. The calculation is not a measure of Berkshire Asset
Management, Inc.'s volatility of returns but a measure of dispersion returns around the mean of the composite.
5. ADDITIONAL
Past performance does not guarantee future results. The composite represents a broad group of accounts of similar objective and management styles, but any
particular account's results may differ from the actual return of the composite.
6. AIMR DISCLOSURE
Berkshire Asset Management, Inc. has prepared and presented this report in compliance with the performance presentation standards of the AIMR, the US and
Canadian version of the Global Investment Performance Standards, GIPS. The AIMR has not been involved in the preparation or review of this report.
7. INDEX DEFINITION
S & P 500 Index is a market capitalization weighted index of 500 stocks. The index is designed to measure changes in the economy and is representative of most major industries.
Lehman 5 Year Municipal Bond Index is a capitalization weighted bond index created by Lehman Brothers, Inc. intended to be representative of major municipal bonds
of all quality ratings with an average maturity of approximately five years.
Lehman Intermediate Government Credit Index is a capitalization weighted bond index created by Lehman Brothers, Inc. intended to be representative of major U.S. bonds of all quality ratings of intermediate term securities.
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