Moderate Portfolio

The Moderate Portfolio aims to grow your assets through a balance of capital appreciation and income.  It may be suitable for people in their 40s and 50s, who are in later stage of wealth accumulation. The static portfolio targets 60% in risk assets such as equity, commodity, real estate and energy master trust and 40% in bonds as strategic long-term allocations. The dynamic portfolio has 60% in risk asset on average, though the allocations on risk assets vary across different stages of economic and market cycles.  Historically, this strategy delivered 13.5% annual return with a 13% drawdown. The following are the backtesting results based on monthly data since 1970.

Long Term Performance Compared to Benchmark (60% S&P 500 +40% Barclays Aggregate Bond Index)

 Portfolio Composition in 12/2011

SPYUS Large Cap15%17%
IWMUS Small Cap15%17%
EFADeveloped Market Equity15%
VWOEmerging Market Equity15%
Dividend Assets
AMJUS Energy Master Trust5%11%
HYGUS High Yield5%17%
AGGUS Bond5%19%
TIPUS Treasury Inflation Indexed Bond5%9%
IEFUS Treasury Bond5%
TLTUS Long Term Treasury Bond9%
SHYUS Short Term Bond

Two-year Monthly Performance

Forty-year Annual Performance

Portfolio Performance Statistics

Static Dynamic Benchmark
Average Monthly Return 0.83% 1.10% 0.77%
Monthly Standard Deviation 2.6% 2.3% 2.8%
Annualized Return 9.9% 13.1% 9.3%
Annualized Standard Deviation 8.9% 7.8% 9.9%
Sharpe Ratio (Risk-free Rate =   5.5%) 0.5 1.0 0.4
Maximum Drawdown (Loss) 34% 13% 31%
Expected Time to Recover (yrs) 3.4 1.0 3.3

[button link=”” color=”#0000FF” size=”3″ style=”1″ dark=”0″ square=”0″ target=”self”]Current Portfolio Composition[/button]