Model Portfolios Finish 2021 Strongly for Solyco Wealth
The four model portfolios managed by Solyco Wealth maintained their benchmark-beating performance to conclude 2021. Spanning risk tolerances from Conservative to Moderate through Moderately Aggressive and Aggressive, each of the four portfolios exceeded its respective benchmark’s performance since their 9/8/21 inception date after assessing an annualized 1.0% management fee, as shown in the following table.
Solyco Wealth Returns and Benchmark Comparisons by Strategy, Since Inception (9/8/21)
|Strategy||Return, Net of Fee||Return, Prior of Fee|
|Since Inception||Benchmark||Strategy +/- Benchmark||Since Inception||Benchmark||Strategy +/- Benchmark|
|Russell 3000 Index||4.35%|
|MSCI World ex-US Index||-1.99%|
|Bloomberg US Agg Bond Index||-0.56%|
Past Performance Is Not Indicative of Future Results
Solyco Wealth used Morningstar Direct to calculate the above returns for the 4Q21 and since inception periods from September 8, 2021, through December 31, 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.
Each of Solyco’s Model Portfolios includes fixed income and cash allocations, ranging from a cumulative 10% for the Aggressive portfolio to a cumulative 80% for the Conservative portfolio. Equity, fixed income, and international allocations for the three more risk-averse portfolios all outperformed since-inception returns for their respective benchmarks – Russell 3000, MSCI All-World ex-US, and Bloomberg US Aggregate Bond Index – as well as their equity component exceeding same-period S&P 500 returns. The post-Thanksgiving downdraft negatively impacting domestic riskier assets, however, resulted in the domestic equity and fixed income allocations within the Aggressive Model Portfolio modestly underperforming their respective benchmarks; returns to the Portfolio’s international equities, though, outpaced those of the MSCI All-World ex-US benchmark.