May 2012 FMx Dynamic Equity ISM

The FMx Dynamic Equity ISM seeks capital appreciation without regard to current income.  The strategy primarily uses no-load institutional and exchange-traded funds.  The portfolio is divided into 4 distinct segments. Each is designed to take advantage of those sectors and areas of the market that offer the best opportunities for good returns based on the [...]

Strategy Diversification

Our ten investment strategy models (ISMs), which are blended to create Optimized Portfolio Models (OPMs), provide the benefits of diversification through differing market conditions.  The last year has been marked with uncertainty, and although the markets have moved upward, there have been very few periods of overly strong trends, either up or down.  In fact, [...]

FMx Premier Asset Management Investment Strategy Model (ISM)

The FMx Premier Asset Management Investment Strategy Model (ISM) identifies outstanding global investment managers who have a proven performance record of at least 5 years and a methodology for risk management.  The month to date return is -1.09% versus -2.09% for its benchmark, the S&P Global BMI.  The year to date return is 10.19 versus [...]

FMx Tax Managed OPMs

The FMx Tax Managed Objective Portfolio Models have the objective of generating tax free income and tax managed appreciation over a long time horizon with differing degrees of portfolio risk.  There are six portfolios including Aggressive, Moderately Aggressive, Moderate, Moderately Conservative, Conservative and Protective. The FMx Tax Managed Protective Model consists of approximately 90% fixed [...]

February 1st FMx Fund Series Update

Effective February 1, 2012,  FolioMetrix has reduced the costs of the FMx Growth Allocation Fund (FMGRX, FMGCX) and the FMx Total Return Fund (FMTRX and FMTCX) by 30bps and 10bps respectively.  FolioMetrix also anticipates a substantial reduction in asset turnover within the FMx Growth Allocation Fund going forward.  This is mainly due to enhancements to our [...]

January 3rd Equity Portfolio Update

As we enter the new year, markets continue to remain uncertain in Europe as they work to solve their ongoing sovereign debt problems.  With the Dow Industrials Average ending the year up 5.53% despite the turmoil during the last half of the year and positive U.S. economic data concerning unemployment, housing, etc., our equity model has been [...]

December 12th Equity Portfolio Update

Markets remain uncertain as Europe continues to work toward solving their sovereign debt problems.  On Friday, a deal was announced in Brussels that all 17 countries using the Euro have agreed to allow a central European authority to oversee their future budgets and impose tighter controls on spending. They also agreed to automatic penalties if [...]

December 8th Equith Portfolio Update

Although the markets remain uncertain, leaders of Europe continue to work toward solving the Eurozone debt crisis with the European Central Bank cutting its key interest rate by 25 basis points to 1%. This week, our proprietary cash allocation algorithm, FolioGuard, indicated a move back to equities in our Tactical Equity model.  Holdings in both the [...]

November 2011 Fixed Income Portfolio Review

For the month of November 2011, the Fixed Income FolioModel returned -0.71% compared to-0.09% of the BarCap US Agg Bond TR. Much of this underperformance comes from the allocations in the Global-All Cap and Opportunistic segments, which were heavily weighted in either high yield or emerging markets. The standard deviation for this period was 1.95 [...]

December 2nd Equity Portfolio Review

We continue to see high volatility and an uncertain path for equities directly correlated with the European sovereign debt crisis. Our proprietary cash allocation algorithm, FolioGuard, has now indicated a partial move to cash for the second time this year in our tactical Equity FolioModel. Holdings in both our Core and Global-All Cap segments have [...]

November 22nd Equity Portfolio Update

Equity asset allocation portfolios are trailing the SP500 by close to 400 basis points, year to date.  Morningstar’s aggressive target allocation model is down 7.35% while the SP500 is down 3.39% through yesterday’s close. The Morningstar model utilizes Ibbotson to build its strategic profile. Primary asset classes in the Morningstar model, in comparison to domestic [...]

November 18th Equity Portfolio Update

How contagiousis the Euro debt crisis?  In regard to developed Governments that have legacy social programs, is it possible to mandate austerity measures that save Economies, or do defaults have to occur to force the issue? Who is underwriting the substantial risk of a Greek, Italian and Spanish default? It appears that a shift to [...]

November 15th Equity Portfolio Update

Even though European markets remain weak and there has been no resolution to the European sovereign debt crisis, there has been strong U.S. economic data reported with retail sales increasing corporate earnings and the Producer Price Index for October falling -0.3%. At FolioMetrix, we continue to monitor the markets during this volatile market period and [...]

Fixed Income Portfolio – October Recap

For the month of October 2011 the Fixed Income FolioModel returned 0.54% compared to the BarCap US Aggregate Bond at 0.11%. The standard deviation of the FolioModel was 1.95 compared to that of the BarCap which was at 5.66. With the equity markets having an exceptional month, the fixed income indices took a small hit [...]

November 2nd Equity Portfolio Update

The October market results were one of the top 10 recorded in history even after the sell off on the last trading day of the month. The S&P500 finished up 10.8%.  However, according to Bob Farrell, every single one of the 10 large monthly gains in history occurred within the context of a secular bear [...]

October 31st Equity Portfolio Update

The SP500 had a tremendous October even after today’s sell-off.  The excitement of Europe’s efforts were the catalyst for the upbeat returns along with very good domestic earnings data across the board. The question going forward is whether the Euro excitement is sustainable.  Will we see government and bank action that reflects the plan or [...]

October 21st Equity Portfolio Update

As of yesterday, October 20th, the SP500 was down 1.78% YTD while the Morningstar Aggressive Growth Allocation Index was down 6.11%. The Morningstar Aggressive Growth Allocation Index offers a highly correlated reflection of how most strategic or traditional asset allocation portfolios are positioned. The significant 433 basis points difference is due primarily to the weakness [...]

October 19th Equity Model Update

We continue to experience rampant ups and downs in the equity markets.  So far this year out of 201 trading days we have seen 65 days that have experienced a rise or loss of over 1% in a single session.   In addition, 29 days have seen swings of more than 1.5% and 21 days have experienced [...]

October 13th Fixed Income Portfolio Update

The past few weeks have seen a rebound in Treasury yields to levels that haven’t been seen since the beginning of September 2011.  The presence of almost no US debt in the Fixed Income FolioModel should protect the portfolio from participating in most of these declines should yields continue to rise (yields go up, bond [...]

A look at dividend paying mutual funds

October 12th Equity Portfolio Update

The FolioMetrix Equity Portfolio Model has decreased its cash allocation from 25% back to 4% due to our cash allocation strategy, FolioGuard, triggering the move back into equities. The Portfolio continues to be defensive with the beta now at 0.67. This action should not be construed as bullish as we could see a reversal of [...]

September 2011 Fixed Income Portfolio Review

For the month of September 2011, the Fixed Income FolioModel returned -1.23% while the BarCap US Aggregate Bond Index returned 0.73%. The underperformance comes from the overweighting and subsequent awful performance of the emerging markets debt within the Opportunistic segment of the model portfolio. Of course people tend to care much less about volatility when [...]

October 4th Equity Portfolio Update

After the 3rd Quarter closed with substantial market losses, the start of the 4th quarter continued on the same downward path as the SP500 lost 2.85%. The FolioMetrix Equity Portfolio Model has a current cash allocation of 25% and a beta of 0.50   If markets continue to weaken, our cash allocation strategy, FolioGuard, will trigger [...]

September 23 Equity Portfolio Update

Due to continuing market and economic deterioration, the FolioMetrix Equity Portfolio has repositioned 25 percent of the assets to cash.   Our proprietary algorithm, FolioGuard, has triggered a 25 percent cash move at this time. Should future conditions decline, additional allocations to cash may occur. With the revised cash allocation of 25 percent the Portfolio beta’s has been reduced [...]

September 22nd Equity Portfolio Update

At FolioMetrix we continue to monitor equity markets and their extreme volatility.  We have maintained our base cash position in the FolioMetrix Equity portfolio at 4 percent. The global markets are facing debt concerns and a slower growing economy.  Three major money center US banks were downgraded yesterday including Bank of America, Wells Fargo and [...]

September 21st Equity Portfolio Update

Markets are down today as investors wait to see if the Federal Reserve will move to stimulate the U.S. economy and if Greece’s creditors, the European Union, European Central Bank and International Monetary Fund will continue to help Greece as they struggle with their debt.  The FolioMetrix equity portfolio remains defensive with a beta of [...]

September 21st Fixed Income Portfolio Update

The performance of the BarCap US Agg Bond TR (BarCap) index has been on a tear as of late.  The FolioMetrix Fixed Income FolioModel is designed to provide absolute real return for investors and to mitigate risk.  We have experienced short term under performance in relationship to the BarCap, but we are comfortable that we [...]

September 20th Equity Portfolio Update

Markets appear positive this morning as investors are hoping the Federal Reserve will introduce new steps to help the U.S. avoid a second recession.  The central bank begins a two day policy meeting today and will report results tomorrow.   The FolioMetrix equity portfolio remains defensive with a beta of around .61 and we will continue to [...]

September 19th Fixed Income Portfolio Update

As fixed income markets have trended down over the past week, they remain flat over the past month.  European concerns have been reflected in the yields on the 10 Treasury and wild swings from 1.96 to 2.11% are beginning to look normal.  As these markets search for some consistency, the Fixed Income Model has been moved [...]

September 19th Equity Portfolio Update

For the past few days the S&P500 experienced a rebound of over 5 percent lead by Consumer Discretion, Industrials and Financials. The FolioMetrix equity model portfolio remains defensive with a beta of around .66 and is substantially under weighted in Financials. As concern continues over European debt and markets remain volatile, we will monitor and be [...]

September 13th Equity Portfolio Update

Equity markets remain volatile as investors continue to be concerned over Europe’s sovereign debt and a slowing global economy.  President Obama’s new jobs bill has been sent to Congress requesting tax increases for taxpayers making over $200,000 and ending tax breaks for oil companies and corporate jet owners.  We continue to monitor our cash position in addition [...]

August Recap for Fixed Income Portfolio

Fixed Income markets continued to make huge advances in the first part of August, finishing the month at a 1.46% return for the BarCap US Aggregate Bond compared to -0.51% for the Fixed Income Model.  We have been waiting for a couple months now for the fixed income markets to level off and return to [...]

September 8th Equity Portfolio Update

A big move in equities reflect excitement and anticipation over President Obama’s upcoming speech on the economy and jobs. We continue to see volatile moves in the market, as of yesterday the S&P 500 gained over two and a half percent.  With so many mixed economic and market swings it is impossible to increase or decrease cash positions [...]

September 2nd Equity Portfolio Update

How fast do things change in this equity market?  After seeing a tint of light at the end of August, we in turn experience two horrific trading days to kick-off September. Such results display how fragile this market really is. With weakening job data; President Obama’s speech, scheduled for early next week, describing how he [...]

September 1st Equity Portfolio Update

With stock markets having their worst August in a decade, many are looking to the month of September when the Federal Reserve meets toward the end of the month with speculation that the central bank may begin a 3rd round of bond buying, QE3, to stimulate the economy.  We continue to monitor all holdings closely [...]

August 30th Equity Portfolio Update

As the stock markets start to show some signs of recovery, we remain fully invested in our Equity strategy. Our approach, supported by our proprietary cash algorithm, FolioGuard, is to remain invested until such time that market and economic indicators weaken to a level that supports a higher allocation to cash. Short term down trends in [...]

August 29th Equity Portfolio Update

Markets appear stronger after Federal Reserve Chairman Ben Bernanke’s speech at the Fed’s annual symposium at Jackson Hole, Wyoming on Friday.  Bernake’s speech did leave the door open to possible action for the weakening U.S. economy and he declined to elaborate on what the Fed might potentially do, but he called on other policy makers to address [...]

August 25th Equity Portfolio Update

As markets continue to seesaw back and forth, many are anticipating the Federal Reserve Chairman Ben Bernanke’s speech at the Fed’s annual symposium on Friday to indicate a possible QE3.  There are mixed feelings on Wall Street as to whether the Fed will act at this time or take a wait and see stance.   Warren Buffett’s [...]

August 25th Fixed Income Portfolio Update

The fixed income markets have been selling off the past couple days – which is a reversal in the trend of investors just continually dumping money into bonds while simultaneously selling out of equities.  Just this past week, the BarCap US Aggregate Bond Index has fallen 0.92% and yields on US Treasuries have rose substantially.  [...]

Equity Portfolio and Market Update

With markets continuing to weaken, many are looking to the Federal Reserve Chairman Ben Bernanke’s speech at the Fed’s annual symposium on Friday as to whether the Fed will indicate a possible QE3.   As mentioned previously, we continue to closely monitor all holdings in the Equity Portfolio and maintain the flexibility to adjust these holdings as [...]