BWA Moderate Conservative portfolio
The BWA Moderate Conservative portfolio has a normal range of equities between 20% to 40%.
Moderate Conservative: Risk Number 25-46 – Target 38 *with temporary (1-2 quarters) flexibility +/- 5 to 10.
Objective: Income with Moderate Growth
BWA Moderate Conservative Portfolio reallocation of holdings and decreased allocation from Overweight (RN=41) to Neutral (RN=30) - September 2021.
BWA Moderate Conservative Portfolio reallocation of holdings and increased allocation from Neutral to Overweight - May 2021.
We added 5% to "Alternative" investments in our Conservative and Moderate Conservative portfolios on 3/31/2020. Our Goal was to provide income to our portfolios. The due diligence on these investments started in March of 2018. We completed all of the client paperwork from 5/2019 to 12/2019 (*Remember lots of paperwork and DocuSign emails) so that we could add these investments into 3 of our discretionary portfolios.
We added 5% of these investments to our Moderate portfolio as of 4/9/2020. We plan to bump these investments to 10% within the month. Call it a "work in process". Please call if you have any questions as we are very limited in what we can put here on our webpage as these are complex products. The video below gives our clients a general overview. Please call Amy at 781-772-2470 or 401-383-1500 if you would like to schedule a 15 minute call to review how these products work.
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Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Our Most recent Allocations, Risk Numbers and Reports:
*RSIGX has a yellow 10 year number #51 of 309 - we were not invested in this fund back then and it has different managers who have been doing great 1, 3 & 5 years*
August 2019 allocation adjustment: Risk Number reduced from 21 down to a 9
May 2019 update: Risk Number = 21
March 2019 updates: Risk Number = 26
No strategy assures success or protects against loss. Past performance is not a guide to future performance. Bonds are subject to market and interest rate risk if sold prior to maturity. An increase in interest rates may cause the price of bonds and bond mutual funds to decline. Net Asset Value (NAV) — The NAV represents the per share/unit price of the fund on a specific date or time. Investing in real estate securities involves risks including the potential loss of principal. Real estate equities are subject to risks similar to those associated with the direct ownership of real estate. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. The value of investments, as well any investment income, is not guaranteed and can fluctuate based on market conditions Alpha — Measures risk-adjusted performance and is generally calculated as the difference between the returns of an investment and its benchmark.
November 2018 updates: Risk Number = 29
We replaced Goldman Sachs Global Income with Hartford World Bond fund. Rationale – Goldman Global Income is under performing YTD and over a 1yr period vs Hartford while taking on a similar amount of risk. The duration on Goldman is higher than Hartford World Bond so it is more sensitive to rising interest rates.
Moderately Conservative Model - we have added a US equity allocation to the options based sector by adding JP Morgan Hedged Equity (symbol JHEQX). This fund is designed to participate in equity market gains while decreasing risk in a declining market scenario which we believe is a perfect equity solution for this model. We also changed our international equity allocation by adding Janus Henderson Global Equity Income (symbol HFQIX). This fund is a conservative international equity investment with an emphasis on dividend paying companies outside of the United States.
On the fixed income side of things, similar to our other models, we have decreased our allocation to global bonds and intermediate term bonds due to the current interest rate environment. We did replace this allocation with some shorter duration and bank loan positions by adding Virtus Newfleet Low Duration Income (symbol HIBIX) as well as Oppenheimer Senior Floating Rate (symbol OOSYX).
Moderate Conservative changes May 2018 *Click here to listen ~1 min*