We’ve executed a trade in both the Conservative and the Aggressive Powerfund Portfolios today, September 19th 2011. The main goal is a small increase in stock fund allocation by 5% for the aggressive portfolio and 1% for the conservative portfolio because stocks, while riskier, are more attractively priced than bonds after the slide in stocks this year. More important to our methodology, fund investors are taking money out of stocks and going into bonds at elevated levels.
Note that while we are not increasing our stock allocation significantly in our Conservative Portfolio, we are shifting to significantly riskier bonds funds, notably a zero coupon bond ETF that is more volatile than stocks - yearly swings of 25%-50% are common with such bond fund, but can offer some offsetting protection in the case of a significantly slowing economy with falling inflation expectations.
You can view the Conservative Portfolio’s trade chart by clicking here, and you can access the Conservative Portfolio’s trade calculator by clicking here.
The Aggressive Portfolio’s trade chart can be viewed by clicking here, and the Aggressive Portfolio’s trade calculator can be found here.
As always check with your fund or broker on short term redemption fees, if any, on selling fund shares and try to minimize all such fees. Also consider trying to book long term capital gains where possible. We have owned these funds for over a year but that doesn’t mean you have.
Redemption Fee Information:
Fee
NTF
Ticker
Name
2%/60
n
POGRX
PRIMECAP ODYSSEY FDS GR FD
1%/180
y
RYFSX
ROYCE FINANCIAL SERVICE SERVICE CL
2%/360
y
SATMX
SATUIT CAP MGMT TR MICRO CAP FD CL A
2%/60
y
UMBDX
SCOUT FDS INTERNATIONAL DISCOVERY
2%/30
y
HOVLX
HOMESTEAD FUNDS VALUE FD
2%/60
n
POSKX
PRIMECAP ODYSSEY FDS STOCK FD
2%/60
y
UMBWX
SCOUT FDS INTERNATIONAL FUND
A redemption fee of 2%/60 in the table above indicates that an investor will be required to pay a 2% fee on shares sold within 60 days of purchase.
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We’ve executed a trade in both the Conservative and the Aggressive Powerfund Portfolios today, September 19th 2011. The main goal is a small increase in stock fund allocation by 5% for the aggressive portfolio and 1% for the conservative portfolio because stocks, while riskier, are more attractively priced than bonds after the slide in stocks this year. More important to our methodology, fund investors are taking money out of stocks and going into bonds at elevated levels.
Note that while we are not increasing our stock allocation significantly in our Conservative Portfolio, we are shifting to significantly riskier bonds funds, notably a zero coupon bond ETF that is more volatile than stocks - yearly swings of 25%-50% are common with such bond fund, but can offer some offsetting protection in the case of a significantly slowing economy with falling inflation expectations.
You can view the Conservative Portfolio’s trade chart by clicking here, and you can access the Conservative Portfolio’s trade calculator by clicking here.
The Aggressive Portfolio’s trade chart can be viewed by clicking here, and the Aggressive Portfolio’s trade calculator can be found here.
As always check with your fund or broker on short term redemption fees, if any, on selling fund shares and try to minimize all such fees. Also consider trying to book long term capital gains where possible. We have owned these funds for over a year but that doesn’t mean you have.
Redemption Fee Information:
A redemption fee of 2%/60 in the table above indicates that an investor will be required to pay a 2% fee on shares sold within 60 days of purchase.