Asset Allocation for 3rd Quarter 2014

There are no changes to our Insightful Asset Allocation targets for this quarter, but we have made some adjustments to a few of our model portfolios including our Fidelity Investments Model Portfolio, our Fidelity NTF Portfolio, and our ETF and Mutual Fund Portfolio. We have also made several changes to the Mutual Funds we are using in some of our model portfolios. In some cases this was due to fund closings while in other cases it was because funds were no longer available at multiple brokerages.

We are making several changes to our Mutual Fund list with Fidelity Strategic Real Return (FSRRX) replacing Fidelity Inflation-Protected Bond (FINPX) because it is a more diversified approach to inflation protection. Baird MidCap (BMDSX) is replacing Neuberger Berman Genesis (NBGNX) which has too many small cap stocks in its portfolio to really be considered a Mid Cap fund.

Additions to our Mutual Fund list are Metropolitan West Low Duration Bond (MWLDX), Arbitrage Event-Driven (AEDFX), Maingate MLP (AMLPX), and Eagle MLP Strategy (EGLAX).

Asset Allocation July 2014

Asset Allocation for 2nd Quarter 2014

There are no changes to our Insightful Asset Allocation targets for this quarter, but we have made some adjustments to a few of our model portfolios including our Fidelity Investments Model Portfolio, our Easy Mutual Fund Portfolio, and our Easy ETF Portfolio. We have also made several changes to the Mutual Funds we are using in some of our model portfolios. In some cases this was due to fund closings while in other cases it was because funds were no longer available at  multiple brokerages.  Another significant change to the funds in our portfolios is to only show open funds in the Easy Mutual Fund Portfolio and the ETF and Mutual Fund Portfolio. If you are already invested in these funds you do not have to replace them unless you see a fund on our lists that you like better. This should be of help to any new subscribers.

We are making wholesale changes to our group of Short Term Bond funds in order to get a better income profile by replacing them with Fidelity Limited Term Bond (FJRLX), Baird Short-Term Bond (BSBSX), and BlackRock Low Duration Bond (BLDAX).

Looking over our list of Small Cap funds we found that all of our favorites had closed, so we have added some new mutual funds to our list Glenmede Small Cap Equity (GTCSX), Hodges Small Cap (HDPSX)Rice Hall James Small Cap (RHJMX), ASTON/Silvercrest Small Cap (ASCTX), and Driehaus Emerging Markets Small Cap (DRESX).

Asset Allocation April 2014

Asset Allocation for 1st Quarter 2014

Since we modified our Asset Allocation targets at the beginning of last quarter, and rebalanced our portfolios to those targets in November, we have not changes to those targets to start the new year of 2014.

We have made a few changes in our funds list. Scout Low Duration Bond (SCLDX) replaced American Century Short Duration (ACSNX) and Intrepid Small Cap (ICMAX) was removed because it was not keeping up with the competition. On the ETF side, we replaced iPath S&P 500 VIX MT Futures ETN (VXZ) with the fairly new VelocityShares Volatility Hedged Large Cap ETF (SPXH) because it is a hedged investment all by itself that may be a better choice than combining an investment and a hedge.

Since many of our favorite funds have been closed to new investors in the last couple of months you will need to look at some of the optional choices we have for some categories if you are not already invested in those Mutual Funds.

Insightful Asset Allocation January 2014

Asset Allocation January 2014

Asset Allocation for 4th Quarter 2013

We enter the 4th quarter of 2013 with a few changes to our asset allocations which resulted in some changes to the Mutual Funds and ETFs in our model portfolios. Our overall allocation to Stocks, Bonds, and Alternatives is not changing, but we are cutting back on our allocation to Managed Futures due to low inflation expectations and replacing that with some hedged assets. In addition, we are adding Long/Short Bonds to some of our portfolios to hedge some of the interest rate risk in our Bond investments. With the addition of this new asset class we are taking this opportunity to rebalance within the Bond portion of our Fidelity NTF portfolio. Finally, we are consolidating some of our domestic equity investments just to reduce the number of mutual funds and ETFs in our portfolios. At the same time we are changing some of the ETFs in our portfolios from more standard market cap based index products to some fundamental index products that should be able to provide a little added value to our ETF portfolios. One additional note, with the move to Mainstay by the Marketfield Fund (MFLDX), one of our favorite mutual funds is essentially closed to most new investors, so if you are not in that fund already you should choose from one of the other Long/Short Equity funds on our list.

Insightful Asset Allocation September 2013

Asset Allocation September 2013