Past Performance

Brandywine has 30 years of experiencing in creating and trading truly diversified portfolios. It’s not a process that can be replicated overnight. Over that period Brandywine has developed and traded dozens of separate trading strategies applied to more than 100 global markets. Some of these strategies take long-term positions based on underlying fundamentals or market trends, while others look at market sentiment, seasonal tendencies, and arbitrage opportunities to capture mispricings in global financial and commodity markets. In all, Brandywine employs hundreds of strategy-market combinations. The result of this true portfolio diversification is a “Free Lunch” (which our CEO describes in the final chapter of his book, Jackass Investing), a portfolio that produces greater returns with less risk than a conventional portfolio.

Brandywine's Symphony Actual Trading - Monthly 2011

Brandywine's Symphony Actual Trading Begins July 2011
Years 7/12
Average Annual Return 14.74%
Annualized Volatility 7.09%
Maximum Drawdown -0.45%
% Profitable Months 86%
% Profitable Years 100%
Brandywine's Symphony
Program
Month 2012 2011
Jan 0.41%
Feb
Mar
Apr
May
Jun
Jul 0.92%
Aug 2.47%
Sep 2.83%
Oct -0.45%
Nov 0.65%
Dec 1.27%
0.41% 7.90%
Targets 12% annual returns and 8% annualized standard deviation

Brandywine also traded the broadly diversified Brandywine Benchmark program during the 1990s, which produced the following performance.

Tested and Actual Performance 1990-2011
Brandywine Benchmark Actual Trading 1991 - 1998
Years 8
Average Annual Return 21.25%
Annualized Volatility 23.53%
Maximum Drawdown -20.81%
% Profitable Months 59%
% Profitable Rolling 12-month 97%
% Profitable Years 100%
Yearly Returns
  Year   Return
1990
1991 45.13%
1992 18.56%
1993 35.48%
1994 16.00%
1995 12.15%
1996 30.79%
1997 6.73%
1998 10.32%
1999
1990's 21.25%

Disclosure Statement

Because the following performance is the tested performance for Brandywine’s Symphony program prior to the start of actual trading in July 2011, the following disclaimer is required.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Tested and Actual Performance 1990-2011
Brandywine's Symphony Tested Yearly Returns, 1999 - June 2011
Years 12 1/2
Average Annual Return 12.00%
Annualized Volatility 8.29%
Maximum Drawdown -7.28%
% Profitable Months 65%
% Profitable Rolling 12-month 94%
% Profitable Years 92%
Yearly Returns
Year Return Year Return Year Return
1990 2000 3.26% 2010 12.71%
1991 2001 6.85% 2011 5.80%i.
1992 2002 28.86%    
1993 2003 10.30%    
1994 2004 17.51%    
1995 2005 9.64%    
1996 2006 -0.14%    
1997 2007 8.60%    
1998 2008 28.18%    
1999 18.44% 2009 3.98%    
1990's 18.44% 2000's 11.31% 2010's 12.44%
Hypothetical performance of Brandywine's Symphony Program from 1999 to June 2011 (from end of Benchmark to the beginning of Symphony).i.2011 from January - June (partial year).

Brandywine Asset Management, Inc.
The Mill
381 Brinton Lake Road
Thornton, PA 19373
610-361-4000

Disclaimer:
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE. THERE IS THE RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING WITH BRANDYWINE.