The 2019 LATINA Style 50 Special Report
Assessing the 2019 LATINA
Style 50 Report
By Karen Vergara, CPA, Allgen Financial Advisors, Inc.
It seems like every month or so, while checking LinkedIn or a national
publication, I come across a new article celebrating the promotion
or hiring of a woman executive in a large corporation. While these are
reasons to rejoice, I dream of a corporate America where these types of
accolades are no longer making it to my newsfeed; not because they’re not
happening, but because it has become the norm.
I know we have a long way to go for that to become a reality, and even
a longer way for Latinas to continue reaching C-Suite positions as a normal
way of doing business. The good news is that there are companies in the
U.S. that recognize the value of Latinas as part of their workforce and
continue to make strides towards changing the status quo by offering career
advancement through training, mentorship and promotion - these
companies comprise the LATINA Style 50.
Since 2001, Allgen Financial Advisors (www.allgenfinancial.com), a
Registered Investment Advisory Firm, has been comparing the returns of
companies in the LS50 to the stock market by using the S&P 500 index and
the results for this year are in.
In 2018, the S&P 500 had an average annual return of -4.38%, while
the companies in the LS50 had an average -14.56%, a difference of -
10.18%.
For the 18 years since this report has been commissioned, the LS50
has outperformed by offering a total average annual return of 9.79%, while
the S&P 500 has returned 7.29%, a positive difference of 2.5% during the
period.
To put these numbers into context, a hypothetical investment of
$100,000 in the LS50 in the beginning of 2001 would have resulted in a
final account balance of $401,330 while an equivalent investment in the
S&P500 would have resulted in a final account balance of $271,188 at the
end of 2018. That represents approximately an additional $130,000 for an
investor choosing to invest in the LS50 index versus the S&P500.
While this analysis is by no means comprehensive, as there are additional
variables that must be considered when making investment decisions, it is
difficult to argue against the power of diversity and inclusion, especially when
data proves its positive results. I continue to look forward to providing the ROI
of the LS50 every year, as well as to be a witness to the progress that Latinas
make in Corporate America.
LS
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Disclaimer
This analysis is based on available
data at the time of analysis. Some
company performances have been
omitted as they no longer exist or
were not publicly traded. This
analysis and returns are also based
on a yearly rebalancing of the
portfolio to take into account the
different companies that are chosen
as part of the index each year and an
equal weighting of each company. In
addition, the measured performance
and conclusions derived therein
reflect a retrospective look at market
performance as the study is
conducted after the companies have
been selected. It is never prudent to
invest based on historical stock
performance alone. In addition, the
LS50 index is not a real market index but rather a dynamic collection of
companies as chosen yearly by LATINA Style magazine. The rates of
return and performance illustrated do not reflect any costs associated with
investing in either index.
Karen Vergara is a
Financial Advisor at
Allgen Financial Advisors
Inc. She is a graduate of
the University of Central
Florida and a Certified
Public Accountant.
As such, the above article should not be construed, nor is it written
to provide financial advice as individual situations may vary and past
performance is not indicative of future results. Any decision to invest in
equity markets should be consulted with a financial professional.
38 www.latinastyle.com LATINAStyle Vol. 25, No. 4, 2019
/(www.allgenfinancial.com)
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