April 2018 Performance

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PERFORMANCE:

Cumulative returns of each of the strategies as though you had invested $100,000 in them at the beginning of the blog.

In April the Equal weighted portfolio  returned 0.2%. This portfolio is my version of a buy and hold portfolio and I use it as my benchmark for the two portfolio's below. 

The TA portfolio performed a little better, returning 0.3%. This portfolio invests in the same securities as the Equal weighted portfolio but actively allocates by adjusting how much is invested in each asset class.

The Enhanced portfolio had the best results, returning 1.3%. This portfolio uses the allocation of the TA portfolio and seeks to enhance those returns by buying funds that access the asset class in a different way.


COMMENTARY:

Equal Portfolio: This portfolio is invested about 25% in each of four asset classes (investment grade debt, high yield debt, large cap equity and small cap equity). It is the baseline or benchmark against which I judge the other portfolios.

TA portfolio: This portfolio had a poor month as markets became concerned about a trade war between the US and China. It is 100% in large cap equities. 

Enhanced portfolio:  This portfolio performed as hoped in April. The heavy weight to international equity was beneficial as fear of the US/China trade war escalated. Defensive sectors also performed strongly. 
    ALLOCATION:

    Color significance:
    Red          =   Small cap equity 
    Orange    =   Large cap equity
    Purple     =   High yield debt
    Green      =   Investment grade debt

    The relevant security returns (used in my three portfolio's) for the month of April (excluding dividends) were:

    For Equal and TA portfolios: VTWO 1.1%, VONE 0.3%, JNK 0.1%, AGG -1.2%

    For Enhanced portfolio: JXI 2.0%, DSEUX 1.9%, KXI -2.2%, DBCMX 2.6%, DSEEX -0.3%

    NOTE: Above returns do not reflect dividend activity however portfolio level returns do include dividends

    Allocations during April were:



    Allocations after the trades (May 1st) are:



    ATTRIBUTION:


    Apr-183-Mo YTD 
    Allocation Rt0.7%-3.1%0.2%
    Selection Rt1.0%2.2%0.0%



    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).

    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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