July 2018 Performance
COMMENTARY:
Equal Portfolio: This portfolio is invested about 25% in each of four asset classes (investment grade debt AGG (-0.2%), high yield debt JNK (1.3%), large cap equity VONE (3.4%) and small cap equity VTWO (1.6%)). In Juuly it returned 1.9%. It is the baseline or benchmark against which I judge the other portfolios.
TA portfolio: This portfolio is 100% in large cap US equities VONE (3.4%). So, in July it returned 3.9% (due to a dividend payment).
Enhanced portfolio: This portfolio returned 2.5% in July. global utilities JXI (1.8%), global consumer staples KXI (3.2%), US equity DSEEX (4.2%), commodities DBCMX (-2.5%),
emerging markets (2.8%). Commodities were the main detractor.
Color significance:
Red = Small cap equity
Orange = Large cap equity
Purple = High yield debt
Green = Investment grade debt(In parenthesis is the return for the period being discussed)
Cumulative returns of each of the strategies as though you had invested $100,000 in them at the beginning of the blog.
Peer Relative: Morningstar
How does performance stack up against the other active managers who are trying to run a similar strategy?
As of July 31, 2018 the blog funds percentiles were:
The Peer groups statistics were:
Mpost of these numbers strengthened again during July. For the last year all portfolio's are above 60% of their actively managed peers (anything above 50% is better than average). The TA fund was at the top of its class for July.
Understanding the peer ranking:
Equal, TA, and Enhanced - The % tells where it ranks during that period (100% would be the top performing fund, 0% would be the bottom)
# of Funds - how many funds reported returns during that period
Max and Min - best and worst return reported for that time period
ATTRIBUTION:
How does performance stack up against the other active managers who are trying to run a similar strategy?
As of July 31, 2018 the blog funds percentiles were:
| 1 Mo | 3 Mo | 1 Yr | 3 Yrs | 5 Yrs | |
| Equal | 68% | 88% | 79% | -na- | -na- |
| TA | 100% | 99% | 98% | -na- | -na- |
| Enhanced | 89% | 70% | 61% | -na- | -na- |
| Peer Group | |||||
| # of Funds | 311 | 307 | 288 | 243 | 182 |
| Max | 4.19% | 8.52% | 19.65% | 11.22% | 10.28% |
| Min | -2.52% | -3.86% | -10.17% | -10.50% | -9.46% |
Mpost of these numbers strengthened again during July. For the last year all portfolio's are above 60% of their actively managed peers (anything above 50% is better than average). The TA fund was at the top of its class for July.
Understanding the peer ranking:
Equal, TA, and Enhanced - The % tells where it ranks during that period (100% would be the top performing fund, 0% would be the bottom)
# of Funds - how many funds reported returns during that period
Max and Min - best and worst return reported for that time period
|
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).
Allocations during June were:
June one year performance (in order): VTWO (18.7%), VONE (16.0%), JNK (1.4%), AGG(-0.9%), JXI (2.6%).
TA position taken one year ago: VONE
Rank: 2nd
| History | 1st | 2nd | 3rd | 4th |
| Number of Bets: | 0 | 3 | 0 | 0 |
| % of Bets: | 0% | 100% | 0% | 0% |
Enhanced position taken one year ago: KXI
Rank: - (JXI underperformed VONE)
| History | + | - | ||
| Number of Bets: | 0 | 3 | ||
| % of Bets: | 0% | 100% |
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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