Model Portfolios Turn in Solid 2nd Month
Each of Solyco Wealth’s four model investment portfolios outperformed its benchmark, net of fees, over the two-month period ending 11/8/21. As shown in the following table both the Aggressive and Moderately Aggressive portfolios, which hold heavier weightings to equities, also their first two months in existence exceeded returns for both the S&P 500 and the Russell 3000 after fees. Past performances are not indicative of future results, however.
Solyco Wealth Returns and Benchmark Comparisons by Strategy, 9/8/21 – 11/8/21
| Strategy | Return, Net of Fee | Return, Prior of Fee | ||||
| 2-Month and Since Inception | Benchmark | Strategy +/- Benchmark | 2-Month and Since Inception | Benchmark | Strategy +/- Benchmark | |
| Aggressive | 5.30% | 1.94% | +3.35% | 5.47% | 1.94% | +3.52% |
| Moderately Aggresive | 5.43% | 1.37% | +4.05% | 5.59% | 1.37% | +4.22% |
| Moderate | 2.82% | 0.91% | +1.91% | 2.98% | 0.91% | +2.08% |
| Conservative | 1.41% | 0.34% | +1.07% | 1.57% | 0.34% | +1.24% |
| Russell 3000 Index | 4.37% | |||||
| S&P 500 | 4.22% | |||||
| MSCI World ex-US Index | -0.03% | |||||
| Bloomberg US Agg Bond Index | -0.15% | |||||
Past performance should not be construed as illustrative of potential future performance.
Solyco Wealth used Morningstar Direct to calculate the above returns for the 1-month and since inception periods from September 8, 2021, through November 8, 2021.
Fees assumed in above calculations amount to 0.083% per month, or 1/12 of annual 1% management fee.
Actual client investment performance likely will differ from respective model portfolio performance due to several factors including: 1) Timing of securities purchases and sales, 2) Dividend reinvestment choices, 3) Securities held outside the model portfolio, 4) Weighting differentials for certain securities relating to whole versus partial share accounting, 5) Timing and pricing of rebalancing actions, and other minor factors.
Conservative benchmark = total returns for 10.0% Russell 3000 Index, 65.0% Bloomberg US Aggregate Bond Index, and 10.0% MSCI World ex-US Index and 15.0% cash allocations.
Moderate benchmark = total returns for 22.5% Russell 3000 Index, 45.0% Bloomberg US Aggregate Bond Index, and 22.5% MSCI World ex-US Index, and 10.0% cash allocations.
Moderately Aggressive benchmark = total returns for 32.5% Russell 3000 Index, 25.0% Bloomberg US Aggregate Bond Index, and 32.5% MSCI World ex-US Index, and 10.0% cash allocations.
Aggregate benchmark = total returns for 45% Russell 3000 Index, 5.0% Bloomberg US Aggregate Bond Index, 45% MSCI World ex-US Index, and 5.0% cash allocations.
Significant upside moves from Earthstone (ESTE; +48.7%), Advanced Micro Devices (AMD; +37.6%), and Sociedad Quimica y Minera (SQM; +25.6%), generally aided performance while Zendesk (ZEN; -18.4%), Universal Health (UHS; -16.9%), and ViacomCBS’s (VIAC; -13.4%) hampered performance. Holdings in private debt capital providers Ares Capital (ARCC; +6.9%) and Hercules Capital (HTGC; +7.1%) paced fixed income-linked holdings over the past two months. Notably, not all of the portfolios held all of these positions.
Solyco Wealth utilizes its model portfolios as baselines for creating investment programs customized to its clients’ individual investing goals and risk tolerances. For more information call (713) 444-3460.