Thursday, February 16, 2017

More On A Two-Dimensional Risk Assessment Process


Risk Tolerance vs. Risk Capacity
Kudos to Michael Kitces for another informative research article on the important differences between investment risk tolerance and financial risk capacity. In this blog post, I’ll add to risk assessment discussion by introducing an alternative method for measuring financial risk capacity.

In general terms, risk tolerance or risk preference is your emotional willingness to accept more investment risk for an expected higher return. Risk capacity, on the other hand, is essentially your ability to live with the outcome of depending on risky assets to build a sufficient retirement nest egg. The previous statement is my opinion of what risk capacity really is. The more classic definition is how much risk a client can afford to take without risking his/her objectives.  

In the Kitces article, Michael points out the importance of measuring both types of risk separately in order to prevent the averaging of the two measures leading to inaccurate client risk profiles. He further demonstrates how Monte Carlo financial scenario planning provides a good measure of risk capacity and can be helpful when combined with traditional risk preference analysis.

Source: Michael Kitces, www.kitces.com

Rather than depend on Monte Carlo probabilities of success, I’m suggesting that funded ratio, current household assets divided by future living expenses, is a better measure of risk capacity and should be favored in two-dimensional assessment of financial risk.

Risk Capacity Changes Over Time
Traditional risk tolerance tends remain relatively stable over an investor’s lifetime. That is until the investor experiences a huge portfolio drawdown like in 2008-09, then preferences always get more conservative much to the consternation of most advisors who recognize that the time to load up on stocks is when the public is terrified of the market.

Source:Koch Capital

Rick capacity can fluctuate considerably over an investor’s lifespan for the simple reason that it includes non-investment life events that affect a household’s financial capability to accept risk. Life happens. And even the best portfolio returns may not be enough to counter the negative financial effects of an unplanned medical emergency or personal crisis.

When using the funded ratio approach to measure household risk capacity, you’re not only accounting for both investment and non-investment assets, but also using a measurement system that can be updated daily to help you quickly adapt your investment plan before your lifestyle is impacted. At Koch Capital, we think of household funded ratio monitoring as a real-time compass to help guide you to and through retirement.

     
Source:Koch Capital

When using the funded ratio as your household’s risk capacity measure, you are essentially accounting for all the household asset resources at your disposal. These assets include your current financial accounts like IRAs and 401ks, your real property holdings, your future ability save money, and your future pension and social security benefits.

In academic parlance, these three reservoirs of savings are referred to as: Financial Capital, Human Capital, and Social Capital. Since risk tolerance (preference) tends to focus on just the Financial Capital side of the equation, you need a mechanism to map the investor’s risk tolerance back to the broader household’s financial risk capacity.

At Koch Capital, we use Riskalyze to measure client investment risk preference; specifically how much portfolio loss an investor can tolerant before he or she hits the eject button. On the risk capacity side, we use our own proprietary funded ratio tool to measure the household’s capacity to accept risk, right up to the dollar amount where the client’s lifestyle is impacted. The diagram below demonstrates how the two measures intersect in the two-dimensional risk assessment framework.

   
Source:Koch Capital

In this two-dimensional risk assessment framework, risk capacity (funded ratio) influences risk tolerance more than tolerance affects capacity. This is because an investor’s risk tolerance, for example, to be aggressively invested on the Financial Capital (portfolio) side is also influenced by the household’s other risk capacity resources—Human Capital and Social Capital.

For example, if your funded ratio (household assets dividend by future liabilities) is over 1.0 and your conservative Social Security benefits constituents the largest portion of your Financial, Human and Social Capital mix, then your retirement plan can probably withstand a more aggressive portfolio allocation on the smaller Financial Capital portion of your overall household asset base.

Stress Test Your Lifestyle Resilience Before Investing Capital
Let’s look at a numerical example of mapping your risk tolerance (Riskalyze) number into your risk capacity (funded ratio) using the two-dimensional risk assessment framework. First, you need to calculate your risk tolerance for all your household’s investment portfolios. I referred to this previously as your Financial Capital.

 
Source:Koch Capital, Riskalyze

Ideally, the retirement-aspiring investor should obtain a single, aggregated Riskalyze number for all portfolios associated with the household. One way to approximate this aggregated value is to (1) calculate/estimate a Riskalyze number for each investment account using the free Riskalyze risk assessment service, then (2) create a spreadsheet to calculate the weighted average Riskalyze number, or 57 in my educational example above.

Next, derive your potential portfolio loss number by using the following Riskalyze hack. Create a dummy Riskalyze client and enter your weighted average risk number and the total value of your investment accounts. In my example, the weighted average, target risk level is 57 and the aggregate account balance is $3,353,106.

Riskalyze provides both the potential downside loss and upside gain over the subsequent six months (see below). Unfortunately, either you or your advisor or your advisor friend will need to be registered Riskalyze user to gain access to this hack.

Source: Riskalyze.com

For this example, the -11% potential loss percent or -$384,870 potential loss number is what I’m looking for as a numerical expression of the client’s aversion to investment losses. Please remember that it’s just a downside estimate and by no means 100% accurate, but still a useful estimate to map against the investor’s risk capacity. The estimated downside loss number will tell us if the investor’s risk tolerance matches up with the reality of the household’s current financial capacity to accept this level of investment risk.

For the statistical inclined, the resulting downside loss number is a two standard deviation forecast over the next sixth months of how much this combination of portfolios could lose (or gain) without you hitting the panic button. But just know that a true black swan event, though rare, would result in a three or more standard deviation loss, and possible permanent loss of capital if the investor sells near the bottom and/or the subsequent market recovery doesn’t materialize. Hence, we are stress testing for the less severe, but more likely market correction scenario.   
 
Now let’s switch over to the risk capacity side using Koch Capital’s risk capacity tool.

Click here for balance sheet image field descriptions
Source: Koch Capital

The graphic above is an annotated screenshot example of Koch Capital’s dashboard app which calculates the household’s current funded ratio. It shows that 11% drop in this household’s portfolios translate to a reduction in its funded ratio from 1.21 (overfunded) to 1.13 (constrained). While this potential portfolio drop would be emotionally troubling, it’s not enough to change the retirement funding trajectory in this example since the funded ratio is still greater than one and the target retirement date is still many years away.

This example also demonstrates why shifting funds from your more risky investment assets to your safer income assets (government bond ladders, annuities, etc.) will limit the downward funded ratio pressure. The riskier investment side of household asset pie would become smaller, thus less of a potential negative influence on household’s funded ratio. This risk reduction strategy is referred to as the “safety-first” approach to retirement income planning.

Beans and Rice, Rice and Beans
As debt-free maven Dave Ramsey frequently points out, “you have to live like nobody else, to live like nobody else.” And if that takes an inexpensive diet of rice and beans for a while to help pay off an expensive credit card balance, then you control your personal finance destiny, even on a modest income.

I bring this up for the simple reason that I have devoted way too much attention to  Financial Capital, investment risk and growing your nest egg through stock market investing. In reality your Human Capital (ability to earn income and save) is usually your best wealth generation asset. And in most cases, it’s less risky than depending on stock market gains.   

As Dave points out, “change starts with you.” Even the best investment managers cannot predict what the stock market will do next. But you control your ability to save for specific financial goals.

The funded ratio planning approach helps you intelligently budget for the future known goals (home, college, retirement, legacy, etc.) and plan for future unknown costs (medical emergency, family crisis, etc.), then guides you down the path to the lifestyle you desire and can afford.

Your greatest household asset is your ability to earn income and save for the future.  And whether you are saving for a house or saving for retirement, you probably have more risk capacity than you think.  

Thank you for your interest and appreciate your feedback......Jim   


P.S. For anyone interested the funded ratio approach, please request your own demo here.


Household Balance Sheet and HHBS are a registered service marks of the Retirement Income Industry Association (RIIA)

Additional Resource Links

Michael Kitces - Adopting A Two-Dimensional Risk Tolerance Assessment Process:

Moshe Milevsky - It’s Time to Retire Ruin (Probabilities):

Riskalzye Blog - And the Average Risk Number is….

Jim Koch - Should You Be 100% Invested In Stocks?

Jim Koch - Retirement Funded Ratio: The One Number Every Retirement Seeking Investor Should Know And Manage:



About Jim Koch
Jim Koch is the Founder and Principal of Koch Capital Management, an independent Registered Investment Advisor (RIA) in the San Francisco Bay Area. He specializes in providing customized financial solutions to individuals, families, trusts, business entities and other advisers so they are better able to achieve their goals. Jim sees himself as an “implementer” of financial innovation, using state-of-the-art technology to provide practical investment management and retirement planning solutions for clients.

General Disclosures
This information is provided for informational/educational purposes only. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions. Nothing presented herein is or is intended to constitute advice to use or buy any of third-party applications presented here, and no purchase decision should be made based on any information provided herein. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable.
Third Party Information
While Koch Capital has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, timeliness, or completeness of third party information presented herein. Any third party trademarks appearing herein are the property of their respective owners. At certain places on this website, live 'links' to other Internet addresses can be accessed. Koch Capital does not endorse, approve, certify, or control the content of such websites, and does not guarantee or assume responsibility for the accuracy or completeness of information located on such websites. Any links to other sites are not intended as referrals or endorsements, but are merely provided for convenience and informational purposes. Use of any information obtained from such addresses is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness.

Friday, January 6, 2017

Benchmark Asset Class ETF Returns for 2016


Chemistry 101
Below you’ll see what people in the investment business refer to as the periodic table of (asset class) returns—named in honor of the periodic table of elements that we all studied in our high school chemistry class. Koch Capital updates this table annually with the one-year returns and standard deviation (volatility) of 13 benchmark asset class Exchanged-Traded Funds (ETFs), which collectively represent a broad, global swath of the investable universe.

The table lists the annual returns for each asset class, ranked from best to worst such that the asset classes with the highest returns are listed above those with the lowest returns for the year. The volatility column to the far right displays the annual standard deviation of each asset class to its immediate left; the higher the value, the more volatile that asset class’s price fluctuations.

Click here to view the entire chart and remember that past performance is not indicative of future results
Source: Koch Capital, Quantext Portfolio Planner
 
Color Matters
The asset classes are organized by color to make the table presentation more interesting. For example, all the equity (stock) categories are shown in the blues and purples; the S&P 500, a common equity benchmark, stands out in its signature black. The fixed income (bond) categories are in red, orange and tan, and bleed into the yellow colors, which represent alternative asset categories. For this demonstration, the alternatives include just gold and commodities. In green, cash (and cash equivalents), the thirteenth asset class category, is represented by short-term Treasury bonds that mature in one year or less.

Taking more risk by favoring small capitalization stocks over large capitalization stocks rewarded investors in 2016. Small cap stocks outperformed large cap stock both domestically and abroad. Gold and commodities woke up this year and reversed the past two years of negative returns. And the bonds of all durations eked out low but positive returns even as rates jumped near year end.  

In summary, it was a normal-ish return year for most global asset classes. However, it’s worth noting that US stocks are still exhibiting very low volatility again this year, which generally indicates investor complacency. Everything is awesome, right?

Pattern Hunting
As humans our brains naturally try to find patterns in what we see. Do you see any predictable pattern of asset class returns from one year to the next? The answer is no. The point here is that asset class returns are random no matter how convincingly your brain tells you, “Hey, I see a repeating historical pattern here and I’m sure it will repeat in the future.”

Source: Quantext Portfolio Planner 1yr ETF correlations to 12/31/2016

The more subtle piece of information in the table above is the relationship between risk and correlation. Even though long-term Treasury bonds (red) are volatile (risky), this asset class is uncorrelated with most stock-based asset classes. When the S&P 500 (black) has good year (over 10% annual return), long-term Treasury bonds (black) tends to underperform, and vice versa. Thus, you get the classic zig-zag relationship between stocks and bonds/alternatives, a return saver courtesy of real diversification that helps your portfolio survive in years like 2008 and 2011.

Occasionally there will be years where both stocks (S&P 500) and bonds (US Gov’t 20yr Treasury) deliver negative returns, although I haven’t recorded this outcome since starting the periodic table in 2001. It’s not a question of if but when this double barrel nasty outcome will occur. And when it does, make sure you have a strategy to control your emotions and a plan to stay course.
   

About Jim Koch
Jim Koch is the Founder and Principal of Koch Capital Management, an independent Registered Investment Advisor (RIA) in the San Francisco Bay Area. He specializes in providing customized financial solutions to individuals, families, trusts, business entities and other advisors so they are better able to achieve their goals. Jim sees himself as an “implementer” of financial innovation, using state-of-the-art technology to provide practical investment management and retirement planning solutions for clients.

General Disclosures
This information is provided for informational/educational purposes only. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based on any information provided herein. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable. Past performance is no guarantee of future results.

Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision.Under no circumstances does the information contained within represent a recommendation to buy or sell any particular security or pursue any investment strategy. There is a risk of loss from an investment in securities.  Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor’s financial situation or risk tolerance. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Please refer to the Site Disclosure page for additional information.

Third Party Information
While Koch Capital has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, timeliness, or completeness of third party information presented herein. Any third party trademarks appearing herein are the property of their respective owners. At certain places on this website, live 'links' to other Internet addresses can be accessed. Koch Capital does not endorse, approve, certify, or control the content of such websites, and does not guarantee or assume responsibility for the accuracy or completeness of information located on such websites. Any links to other sites are not intended as referrals or endorsements, but are merely provided for convenience and informational purposes. Use of any information obtained from such addresses is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness.

Friday, July 15, 2016

Bond-ageddon


Heck of a Bull Run in Bonds
If you have been following the bond market pundits like Bill Gross, Gary Shilling, Jeffrey Gundlach and others, it will come as no surprise that the 10-year U.S. Treasury bond yield recently dipped below 1.4% for the first time ever. And when you consider that foreign 10-year government bonds from Germany, Japan and Switzerland are generating negative yields, we’re definitely in uncharted bond waters both here and overseas. 

Given that bond prices move inversely to bond yields, one can see from the chart below the amazing 35-year tailwind that Treasury bonds have enjoyed to date. Now with bond prices at all time highs and bond yields at record lows, what should investors do with this traditional stable asset class?
  


Source: Wall Street Journal

In general, bond investors evaluate the following five levers to target expected yield and manage risk within the fixed income portion of their investment portfolios:  quality (credit risk), liquidity, maturity/duration (sensitivity to interest rates), purchasing power (sensitivity to inflation), and asset location (taxes). For this example, let’s assume the bond portfolio resides in a tax-deferred account like an IRA, so the asset location is set and bond interest received within the account is not taxed. Further, let’s assume all bonds discussed in this post are high quality, investment-grade or better, to remove the credit risk lever from consideration. So now let’s think about your bond holdings just in terms of trading liquidity, interest rates and inflation sensitivity.

Do You Really Need Bonds in Your Portfolio?
Some advisors don’t hold any bonds within their client portfolios, instead relying on third-party guaranteed income streams like insurance annuities, corporate defined benefit pensions, bank certificates of deposit and social security to fill the traditional fixed income role. In addition, this school of thought may recommend that a client hold two years of living expenses in cash to avoid portfolio distributions (sequence risk) during a severe stock market downturn like in 2008-2009.

While the “hold no bonds” strategy partially deals with the inflation sensitivity issue (with CPI-adjusted Social Security benefits and possibly inflation-adjusted annuities) and with interest rate sensitivity (income lasts for your exact lifetime), the liquidity (locked in except for cash and CDs), legacy and product cost issues are major hurdles when pursuing the bond alternative route.

The more traditional fixed income approach is to hold some taxable bonds in your IRA to help control overall portfolio risk. But if your bond holdings, with the recent record high bond prices and low yields, are now a potentially risky asset, how can you get that fixed income stability back into your investment portfolio?

To see the traditional relationship between the stocks and bonds, please review my periodic table of benchmark ETF returns below. In particular, please note how the long-term Treasury bond (red) tends to go up in years when the S&P 500 stock index (black) goes down. This is considered normal non-correlated asset behavior at least for the past ten years. However, the period were in now is anything but normal.
Click here to view a full screen version of this graphic
Source: Koch Capital

Interestingly, the big pension plans like the California Public Employees’ Retirement System (Calpers) have taken notice of this generational-long decline in bond yields and have had to ratchet up their equity allocations in order to achieve a reasonable rate of return to meet their future pension payout liabilities. Households planning for retirement have had to do this too; increase their equity allocations to augment their periodic savings in order to build a sufficient retirement nest egg. In the Wall Street Journal example below, pension funds used to simply invest in high-grade corporate bonds to achieve a reasonable 7.5% rate of return with low volatility (standard deviation) of 6.0%.


As of 2015, the bond allocation averages have declined from 100% to just 12% of the overall portfolio allocation in order to maintain that target 7.5% nominal return. However, holding more equities increases portfolio volatility (17.2% versus 6.0%) as well as the potential risk of not meeting their funding needs. To visualize what the potential roller coaster ride of 7.5% returns with 17.2% volatility looks like, please see my volatility of returns visualizer below. Yippee ki yay!

Click here to view a full screen version of this flash-based application
Source: Koch Capital
  

Do What the Hedge Funds and Bond Fund Managers Do     
If overall portfolio growth and stability, rather than just income generation, are your primary investment goals, then consider hedging your bond holdings to be less interest rate sensitive, more inflation friendly, and easily liquidated if cash is needed. The descriptive table below contains investment metrics for the iShares Core US Aggregate Bond ETF (AGG), a common proxy for the US bond market, and my custom bond ETF mix from Koch Capital’s Global Risk-Managed Flexible Core (FLEX) portfolio strategy, available on Charles Schwab’s Managed Accounts platform.  

Description
Size
Cor.
E.R.
E(Ret)
E(Vol)
Beta
Yield
AGG Bond ETF
38.77B
-2%
0.09%
2.13%
3.64%
-1%
2.31%
FLEX Bond Mix
0.796B
13%
0.15%
2.51%
2.87%
10%
1.59%
Disclosure: (1) Size is net asset value of the fund or ETF as of 7/11/2016; (2) Cor.  is the 2yr historical correlation with SPY as of 7/11/2016; (3) E.R. is the  fund’s expense ratio or internal management fee; (4) E(Ret) is the forecasted future annual rate of return from 7/11/2016; (5) E(Vol) is the forecasted future standard deviation from 7/11/2016; (6) Beta is the  2yr historical beta as of 7/11/2016; (7) Yield is the trailing 12 month yield as of 7/11/2016; (8) The average net asset value of multiple ETFs as of 7/11/2016. Source: Koch Capital, Quantext Portfolio Planner, Yahoo Finance

Please remember that all these measures will change depending on the time period selected.

A quick review of the table above demonstrate that both bond solutions retain their low correlations with stocks via the low or negative (Cor)elation numbers as well as low stock market Beta numbers. Both have relatively low yields at 2.31% and 1.59% respectively, but that’s to be expected in a low yield environment where we want to maintain high credit quality and not chase higher yields in the junk bond market.

Interestingly, the long-term expected return and expected volatility (standard deviation) of the FLEX bond mix is better than AGG’s. However, this is a forward-looking forecast, so who knows whether it will materialize or not. Finally, the expense ratios for both bond solutions are cheap at 0.09% and 0.15% respectively. Hard to imagine this type of high quality, low-cost bond solution available ten or even five years ago!  

Now, let’s take our single AGG ETF and FLEX bond mix and run them through various macroeconomic scenarios to see how they react to specific market and economic factors.  

Market & Economic Stress Tests
If Scenario Below Occurs, Then……..
AGG Bond ETF
FLEX Bond Mix
S&P 500 Recession, Market Down by 20%
4.91%
1.30%
S&P 500 Recovery, Market Up by 20%
-6.83%
-1.11%
Short-Term Rates Up (12M T-Bill @ 2%)
-8.00%
-3.65%
Long-Term Rates Up (10Yr Treasury @ 3%)
-7.32%
-3.08%
General Inflation Up (CPI @ 3%)
-3.77%
0.54%
Source: Koch Capital, HiddenLevers

Again, all these measures will change depending on the time period selected, so please focus on the directional trend rather than the absolute value, which is also subject to modelling error.

In the case of a significant 20% stock market correction, AGG will most likely perform its traditional portfolio stabilizer role of providing some positive price appreciation relief in an otherwise negative stock return swoon. The FLEX bond mix will probably return some positive price appreciation too,  just not as much as the AGG for the bond portion of your portfolio.

However, the FLEX portfolio strategy is more concerned about potential bond return drag if interest rates and/or inflation creeps up, or the stock market melts up by 20% in which case the hedged FLEX bond mix will probably perform better by losing less than AGG. Even though the current low interest rates may remain low for an extended period or the current low inflation environment remains benign longer than anticipated, it’s still more painful from a long-term portfolio sustainable growth perspective to be on the wrong side of rising rates and inflation if you are investing for retirement. But that’s just one financial advisor’s opinion.

Hey, Do You Have an ETF For That?
The good news is that we are living in golden age of fund innovation where specialized financial tools can be implemented in your portfolios at reasonable cost to help protect against specific bad outcomes associated with unpredictable markets and economic conditions. However, all investment strategies come with trade-offs, usually giving up some return potential now to protect against some really bad future condition later. But with proper hedging of your bond portfolio, you can choose to dial back your stock market risk by increasing your bond allocation if you prefer a less bumpy, but slower growth ride.

In summary, all investors can now start thinking more like a hedge fund or bond fund manager, and implement their own custom hedging strategies to help protect against the market and economic conditions that most impact their chances of a secure, lifelong retirement. Like with tennis, it’s the player who is best prepared and makes fewest unforced errors that wins the match. Call me at 925-838-2324 if you like to discuss your potential bond-aggedon.

Thank you for your interest........Jim


About Jim Koch
Jim Koch is the Founder and Principal of Koch Capital Management, an independent Registered Investment Advisor (RIA) in the San Francisco Bay Area. He specializes in providing customized financial solutions to advisors, individuals, families, trusts and business entities so they are better able to achieve their goals. Jim sees himself as an "implementer" of financial innovation, using state-of-the-art technology to provide practical investment management and retirement income planning solutions for clients.

General Disclosures
This information is provided for informational/educational purposes only. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based on any information provided herein. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable. Past performance is no guarantee of future results.

Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. Under no circumstances does the information contained within represent a recommendation to buy or sell any particular security or pursue any investment strategy. There is a risk of loss from an investment in securities.  Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor’s financial situation or risk tolerance. Please refer to the Site Disclosure page for additional information.
Nothing contained herein should be interpreted as legal, accounting, or tax advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state or local tax penalties. Tax issues can be complicated. Please consult your tax advisor for personal tax questions and concerns.

Use of Calculators, Planning Tools, and Other Devices
The use of any calculator, tool, or similar device contained within or linked to this website is subject to your acknowledgement and understanding that the projections or other information generated by any such tools is not, and should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from Koch Capital, or from any other investment professional. The projections or other information generated by such tools regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, are not guarantees of future results, and may not reflect the actual growth or costs of your own investments. These tools are designed for informational and educational purposes only and should not be considered investment advice. No reliance should be placed on any such information when making an investment decision. Koch Capital makes no warranties of any kind, and disclaims liability to any person for any actions taken or omitted in good faith with respect to such tools. Koch Capital obtains the information provided via these tools from third party sources believed to be reliable but not guaranteed. Koch Capital is not responsible for the consequences of any decisions or actions taken as a result of information provided by such tools and does not warrant or guarantee the accuracy or completeness of the information requested or displayed. Please refer to the Site Disclosure page for additional information.

Third Party Information
While Koch Capital has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, timeliness, or completeness of third party information presented herein. Any third party trademarks appearing herein are the property of their respective owners. At certain places on this website, live 'links' to other Internet addresses can be accessed. Koch Capital does not endorse, approve, certify, or control the content of such websites, and does not guarantee or assume responsibility for the accuracy or completeness of information located on such websites. Any links to other sites are not intended as referrals or endorsements, but are merely provided for convenience and informational purposes. Use of any information obtained from such addresses is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness.