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Show THE OGDEN VALLEY NEWS Page 14 Volume VI, Issue III May 15, 2002 Investment Benchmarks —Why we use them, and what they mean You’re on the way home from work when your radio reports, “The stock market was up today. The Dow Jones Industrial Average was up one percent.” Does that mean your investments were up a corresponding amount? Not necessarily! TV and radio stock market recaps typically report on the Dow Jones Industrial Average (DJIA). Sometimes they go on to report the S&P 500 index and NASDAQ Composite Index. All three are indexes tracking market trends with a fixed group of stocks. These three indexes may have different daily returns; one may be up for the day while another may be down. Each represents a different part of the stock market, but none of them are exactly comparable to the performance of your particular investments. Investment professionals have established dozens of indexes in addition to those handful you typically hear of in news reports. The Morningstar investment services use over 70 indexes. Each reports investment performance for a defined segment of the market. To gauge how your investment is doing, select the investment benchmark that measures the performance of similar investments. Keep in mind though, that indexes do not reflect any expenses or fees, and therefore may illustrate higher performance, overall. The Securities and Exchange Commission (SEC) requires all mutual fund issuers to name an appropriate broad-based index market to compare with the results of their mutual fund. The following are among the more popular benchmarks: MSCI EAFE The Morgan Stanley Capital International EAFE index tracks foreign stock funds (EAFE stands for Europe, Asia and Far East). It is widely used a benchmark for international stock performance. The EAFE Index is an aggregate of 15 individual country indexes that represent many of the major stock markets of the world. S&P 500 The Standard & Poor’s 500 Index is a value-weighted index of 500 widely held stocks. It is often used as a proxy for the U.S. stock market. It measures the movement of the largest issues including the stocks of 400 industrial companies, 40 financial companies, 40 public companies and 20 transportation companies. NASDAQ Composite This index tracks issues listed in the NASDAQ Stock Market, except for rights, warrants, units and convertible debentures. Lehman Brothers Government Bond Index This index follows governmentbond general and Treasury funds. It tracks U.S. Treasuries, agency bonds, and one to three year U.S. Government obligations. It is used as a proxy for portfolios holding non-mortgage government securities. Although these indexes provide a gauge to the direction of investment markets, don’t be surprised if your investment’s actual performance differs from the benchmark. They are far from a perfect measure of how your investment performs. A manager’s strategy may be far more complex than what any given index can mirror. For that reason, some benchmarks may seem inappropriate for a given investment. Note: This article was submitted courtesy of Calvin Welling CLU ChFC CFP at Heritage Financial Group, Inc. 801-3995409. Come V i sii t U s 801-745-1259 2547 N. Valley Junction Dr. Eden, UT 84310 For all your Excavatingg Needs LANDSCAPE TOP FILL ROCK SOIL DIRT GRAVEL ROAD BASE SEPTIC TANKS BASEMENTS WATERLINES SNOW REMOVAL Propane Available for Sale 4786 OFFICE LOCATED AT EAST 2600 NORTH EDEN, 745-2309 Office a) serve as a sounding board, source of ideas, and line of communication regarding school issues; b) mobilize resources of the community to enhance student achievement; c) help develop, implement, and support plans to improve academic achievement; d) help publicize plans and results to patrons; and e) prepare an annual report to the school board each year. Persons who volunteered and were consequently named to the VECC include community representatives Sue Johnson, Penny Patterson, Cindy Hillstrom, and Deana Froerer, plus Valley Elementary educators Lynn Graves, Claire Dickson, Candy Facer, and Principal Brad Larsen. The first Council meeting was held March 20,2000. The focus of the initial meeting was to explain why community councils are needed, how to operate an effective council, and a review of by-laws for the organization. Issues discussed included how to keep the community better informed about what goes on at Valley Elementary, the process of teacher requests, and timelines for developing grant proposals to secure academic program funding for the school. During the second meeting, held April 22, discussion turned to actions that can make a difference in student achievement. For example, a mathfocus incentive program to enhance math skills was discussed. The council weighed the opportunity of having a monthly incentive for students from the Yukon Grill in Huntsville, verses the additional work required by Valley Elementary educators to design, administer, and track such a program. The council determined that to get the support necessary to make a new math program—or any additional academic undertaking—successful, we must first build a financial and volunteer base to serve the project. In the council’s opinion, the best way to increase this base is through communication. Over the coming months, we hope to explore and share with the community our discussions on topics such as why we need your help in the classrooms, how we may be able to help teacher’s obtain more time to teach, and what other schools are doing to make a difference in student achievement. The VECC’s goal is to make the community more aware of what’s going on at Valley Elementary so you will understand how you can make a difference by sharing your time, talents, or money. Our next meeting is scheduled for Monday, June 3, at 3:45 p.m. at the Media Center at Valley Elementary School. These meetings provide an open forum for discussion. Anyone who is interested, is more than welcome to attend. Also, feel free to contact any member on the VECC to pass on ideas or suggestions for the Community Council to consider. BARBARA BEALBA INTERIORS Custom Draperies Blinds, Shutters & Shades Reupholstery Design Consultation E-mail: VJInn2002@hotmail.com www.valleyjunctioninn.com Natalie Chambers, Manager Visa and Mastercard Accepted As mandated by the Utah Legislature, a community council has been organized to serve Valley Elementary School. The role of the Valley Elementary Community Council (VECC) is to: Valley Junction Inn ESTABLISHED 1981 Valley Elementary Community Council Organized 745-2269 E-mail: barbarab@konnections.net St. Florence Catholic Community MASSES: Saturday: 5:00 p.m. Sunday: 8:00 a.m. 10:15 a.m. WEEKDAY MASS: Tuesday: 6:30 p.m. followed by The Rosary Phone: 745-LORD Huntsville, Utah PASTORAL ADMINISTRATOR: Fr. Charles Cummins 399-9531 RECONCILIATION: 30 minutes before Mass UT 84310 745-6910 Fax Come celebrate with us God’s good news. Intersection of Highway 39 & Snowbasin Road |
