Sept 2017 Performance

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PERFORMANCE:

In September the Equal weighted portfolio returned 1.9% and is the baseline for the other portfolios. 

The TA portfolio (which actively allocates among the four asset classes that are in the equal weighted portfolio) outperformed the equal weighted portfolio returning 2.7%. 

The Enhanced portfolio (which uses the allocation of the TA portfolio and seeks to enhance those returns with security selection) did the worst, returning 0.8%.

The relevant security returns (used in the above three portfolio's) for the month of September (excluding dividends) were:
For Equal and TA portfolios: VTWO 6.0%, VONE 1.6%, JNK 0.2%, AGG -0.8%
For Enhanced portfolio: IEMG 0.0%, DSEUX 1.7%, KXI -0.9%, JXI -2.6%
Color significance for whole post:
Red is small cap equity 
Orange is large cap equity
Purple is high yield debt
Green is investment grade debt

ALLOCATION:
Allocations during September


Allocations after today's trades (October 2nd).


ATTRIBUTION:

Sept - 17 3 Mo 
Allocation Rt   0.8% 1.2%
Selection Rt  -1.9% 3.1%

The way to think of this is that the "Allocation Rt" is how much the TA portfolio out (or under) performed the equal weighted portfolio (how much did the asset allocation benefit returns). The "Selection Rt" is how much the enhanced portfolio out (or under) performed the TA portfolio (how much security selection benefited returns).

COMMENTARY:
Equal Portfolio: This portfolio is the baseline, which the other portfolios are graded against.

TA portfolio: Having the full allocation being in equity was helpful as US equity markets continued to have strong returns in July. Small cap equity was by far the strongest and the portfolio was neutral to that asset class (relative to the equal weight portfolio).

Enhanced portfolio:  After a strong July and August, emerging markets lagged in September. Defensive equity sectors (consumer staples and utilities) were also punished as markets continued to push forward. The international equity fund performed in-line with large cap equity. This portfolio remains defensive. It has done well during equity downturns and lagged a bit in market rallies. This is the intended exposure so I am happy with the way it is performing.


    DISCLAIMER:
    Past performance is not a guarantee of future performance.  This strategy is presented for informational purposes only and is not a solicitation to buy or sell any securities. October is one of the peculiarly dangerous months to speculate in stocks in.  The others are July, January, September, April, November, May , March, June, December, August and February. ~ Mark Twain

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