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Valuation Sets the Stage
Using classic valuation criteria, ICON calculates intrinsic value for
approximately 2,000 U.S. stocks in addition to approximately 2,300 foreign
securities from more than 30 overseas countries. Fundamentally, ICON projects
earnings growing into the future and then discounts these projections back to
their present value according to risk and interest rates (opportunity cost).
Value is then divided by the market price to calculate a value-to-price ratio
(V/P), which is used to determine whether an individual security is under- or
overpriced relative to our estimate of intrinsic value.
By computing equal-weighted averages for all stocks across the 147* industries
comprising the Standard & Poor's Composite 1500 Index, ICON determines a
V/P ratio for each of 147 industries.
Industry Emphasis
We believe markets have themes in which certain industries assume leadership
roles generally for a period of one to two years. Industry V/P ratios are used
to identify those industries that are under- or overpriced relative to our
estimate of intrinsic value.
This approach is based on our belief that random risk is highest at the
individual stock level. By stressing industry exposure and holding a selected
number of stocks within an industry, we hope to reduce the random risk
associated with individual securities. Moreover, although we tilt our
portfolios toward favored industries, we tend to limit the portfolios exposure
to any one stock.
Relative Strength
Since value analysis may lead us to buy stocks and industries before they are
ready to move, we also employ a relative strength calculation. By comparing
company, industry and sector performance to the broad market, we attempt to
identify underpriced issues that are demonstrating leadership and therefore are
favorably positioned to outperform the market.
Above-average performance, however, should not be confused with weekly or
monthly moves. Given that relative strength is continuously computed using the
trailing 26-week period, this reading is generally insulated from short-term
dips or surges.
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 More of what ICON can offer you |
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| Internal Sales Support |
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| The associates in ICON’s internal sales division are focused on providing sales and service support to financial advisers like you. Contact them today to learn more about the ICON investment system, review ICON’s products, or to order sales literature. |
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| Sales Assistance When You Need It |
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| When you need a client presentation or help with a seminar, ICON has the tools you need. |
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| Reach the Pinnacle |
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| The ICON Pinnacle Club recognizes those representatives who have demonstrated a commitment to and interest in our products. The invitation-only Pinnacle Club provides certain benefits and privileges to members. |
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The figures shown are past results. Past performance does not guarantee future results.
An investment concentrated in sectors and industries may involve greater risk and
volatility than a more diversified investment, and the Technology sector has been among
the most volatile sectors in the market.
There are risks involved with mutual fund investing, including the risk of loss of principal.
Investments in international securities may entail unique risks, including political, market, regulatory and currency risks. Financial statements of foreign companies are governed by different accounting, auditing, and financial standards than U.S. companies and may be less transparent and uniform than in the United States. Many corporate governance standards, which help ensure the integrity of public information in the United States, do not exist in foreign countries. In general, there is less governmental supervision of foreign stock exchanges and securities brokers and issuers.
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