In September, our Conservative portfolio was up 3.7% while our Aggressive portfolio was up 6.5%. This compares to an 8.92% return on the Vanguard 500 (VFINX) fund and a -0.01% return for the Vanguard Total Bond Index (VBMFX).
The strongest stock categories in September where technology funds, which gained 13%, and small cap growth, up 12.8%. Japan, utilities, and real estate posted more modest gains, up 7%, 4.7%, and 4.4% respectively. Strong bond areas included emerging market bond funds, up 3.2% and high yield (junk) bonds, up 2.9%.
Good Month:
Our Large cap growth fund PRIMECAP Odyssey Growth (POGRX) soared 12.54% in September, beating the S&P 500 index fund by 3.6%
Small cap growth Janus Triton T (JATTX) shot up 12.32% in September, outpacing S&P 500 index fund by 3.4%
Europe fund Vanguard European ETF (VGK) scored another big month with a 11.26% jump in September.
Blend fund Jensen Value J (JNVSX) did well for a relatively conservative fund with a 11.21% return last month.
International diversified fund UMB Scout Worldwide (UMBWX) also posted a big return, up 10.61% in September partially on US dollar weakness.
Mortgage bond fund Doubleline Total Return Bond (DLTNX) climbed 1.78% in September, 1.8% better than the bond market index. Higher risk bonds in general are on an upswing.
Bad Month:
Our Long/Short fund PowerShares DB Commodity Dble (DEE) sank -13.87% in September, worse than the S&P 500 index fund by a whopping -22.8%. We fully expect this fund to perform poorly when stocks are doing well, unless the commodity crash starts anew. This small stake (just 2% of the Aggressive portfolio) is primarily a hedge against economic calamity and a speculation on commodities cooling.
Utilities fund American Century Utility Income (BULIX) rose 5.54% in September, 3.4% worse than the S&P 500 index, after a strong run since we added it a few months ago.
Our blend fund Parnassus Equity Income (PRBLX) rose 8.52% in September, which underperformed the S&P 500 index fund by 0.4%.
September 2010 Performance Review
In September, our Conservative portfolio was up 3.7% while our Aggressive portfolio was up 6.5%. This compares to an 8.92% return on the Vanguard 500 (VFINX) fund and a -0.01% return for the Vanguard Total Bond Index (VBMFX).
The strongest stock categories in September where technology funds, which gained 13%, and small cap growth, up 12.8%. Japan, utilities, and real estate posted more modest gains, up 7%, 4.7%, and 4.4% respectively. Strong bond areas included emerging market bond funds, up 3.2% and high yield (junk) bonds, up 2.9%.
Good Month:
Bad Month: