Capital Markets: Observations & Insights

Income from Growth ​ Growth vs. Bond-like Equities

• Investors can generate income from growth if future rates of return are similar to the past

• Hypothetically, withdrawing 4% annually from $100,000 invested in the Russell 3000 Growth over the past 30 years would have generated both income and growth

Illustration of Hypothetical $100,000 Investment in Russell 3000 Growth (1986-2015)





$371,148 Income Received





$474,256 Growth in Initial Investment





Initial Investment 1986


Source: Morningstar and Alger estimates 1/1/1986-12/31/2015. Index performance does not reflect deduction of fees, expenses or taxes. Numbers may not total due to rounding. Please note the amount of investment growth presented is provided for illustrative purposes and assumes that no other withdrawals were made aside from the annual $4,000 withdrawal during the period from January 1986 to December 2015. Such returns shown represent that of the Russell 3000 Growth Index and not actual performance of any account advised by Fred Alger Management, Inc. Investors cannot invest directly in an index, which does not assess fees and expenses that would have the effect of reducing returns. Also note that index performance reflects the reinvestment of dividends.

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