Security allocation summary
The security allocation summary page contains a summary of all securities currently allocated, in any of our allocation plans. The table contains:
- The security symbol and description.
- The number of allocation plans in which the security is contained.
- The number of allocation plans that currently have allocated part of the portfolio to this security.
- The average allocation from the plans in which this security is allocated.
The data from the security allocation summary page is used to create the monthly blogs below, which summarize fund category strength and confidence.
Monthly Strength and Confidence Blogs
Each month we summarize the security allocation summary into the Strength and Confidence blogs below. The intention is to show, broadly, which fund categories are being allocated frequently (Confidence) and which fund categories are getting the highest allocations (Strength).
Strength - Our model will allocate higher percentages of a portfolio to funds that are providing higher volatility adjusted returns. A "strength" of 100% means that in all portfolios where a fund category is given an allocation, it is given the maximum available allocation. Lower percentages indicate less average allocation.
Confidence - A "confidence" of 100% means that every fund of a given category, in every portfolio, received some allocation. Lower percentages indicate less frequent allocation across the portfolios.
So higher strength means that when we allocate a fund category, we are giving it more average allocation, while higher confidence means that a fund category is being given some allocation in a higher percentage of all available funds of that category.
Our model will reduce allocations to zero during bear markets. Thus a positive strength indicates we are allocating (buying) a given fund category.
We have also added charts that show the average allocation history for broad categories. These broad categories summarize all of the fund categories to one of: bonds, blend, commodities, stocks, other, or unallocated (cash). (In this case "blend" means a blend of stocks, bonds, commodities, etc.; not blended stock funds.)
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posted Apr 30, 2013, 9:32 AM by paul dunn
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updated May 20, 2013, 3:43 PM
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Fund Category Strength and Confidence - All Reallocation Plans The chart below shows the Strength and Confidence for the prior period, for all reallocation plans, for the 10 fund categories with the highest Strength. Observation(s): - Domestic stock funds dominate the categories across a range of both size (small, mid-cap, or large) and type (value, growth, blend).
- Real estate also occupies 2 of the top 10 positions this month. It has been a long time since real estate appeared in this list. Further, global real estate has a confidence of 100%; meaning it received some allocation in every allocation plan in which it was included.
Broad Fund Category Average Allocation History - Monthly Reallocation Plans ONLY This chart further reduces the fund categories into one of six categories: bonds, blended funds (blends of stocks/commodities/bonds), commodities, stocks, other, and unallocated (cash). For each category, the average allocation is shown for each month. Since we have included a category for unallocated (cash), the total allocation is always 100%.
The two charts below are the same chart, but different time frames. Both charts show the average allocation to (broad) fund categories. The first chart shows the prior 4 years data, while the second chart includes data back to 01-JAN-2002. Both charts are stacked bar charts, meaning the size of each color (fund category) indicates that categories average allocation during the period.
Since the end of the last month did not correspond to a quarter end, the only data included in these two charts are for monthly plans. (Thus the Fund Category Strength and Confidence chart, which includes all allocation plans, may include categories that are not shown in this chart for the current period.) Observation(s): - Again, stock funds are dominating our allocations.
- As mentioned above, real estate (included in commodities), is showing some minor allocation.
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posted Mar 28, 2013, 9:18 AM by paul dunn
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updated May 1, 2013, 1:12 PM
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Fund Category Strength and Confidence The chart below shows the Strength and Confidence for the prior period, for all reallocation plans, for the 10 fund categories with the highest Strength. Observation(s): - Domestic stock funds dominate the categories across a range of both size (small, mid-cap, or large) and type (value, growth, blend).
- This is a significant change from February, where foreign funds were well represented and occupied the top 3 positions. This month, foreign funds are only represented in the bottom 2 categories.
Broad Fund Category Average Allocation History This chart further reduces the fund categories into one of six categories: bonds, blended funds, commodities, stocks, other, and unallocated (cash). For each category, the average allocation is shown for each month. Since we have included a category for unallocated (cash), the total allocation is always 100%.
The two charts below are the same chart, but different time frames. Both charts show the average allocation to (broad) fund categories. The first chart shows the prior 4 years data, while the second chart includes data back to 01-JAN-2002. Both charts are stacked bar charts, meaning the size of each color (fund category) indicates that categories average allocation during the period.
Observation(s): - Again, stock funds are dominating our allocations.
- Last month, the only broad category included was Stocks. This month, the broad allocation has hardly changed, but does included a small amount of commodity related funds.
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posted Mar 8, 2013, 3:15 PM by paul dunn
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updated Mar 10, 2013, 7:53 PM
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Fund Category Strength and Confidence - All Reallocation Plans The chart below shows the Strength and Confidence for the prior period, for all reallocation plans, for the 10 fund categories with the highest Strength. Observation(s): - "Large" is again strong; 3 of the top 10 categories are a form of large company stocks.
- Mid-cap is also part of the category designation for 3 of the top 10 categories. (Last month Mid-cap was in 2 of the top 10 categories, but this month Mid-Cap Growth also entered the top 10.)
- If anything, March exemplifies why a diverse portfolio is commonly considered a good strategy for investing. The top 10 categories this month have focus ranging from large to small, foreign to domestic, value to growth, as well as bonds.
Broad Fund Category Average Allocation History - Monthly Reallocation Plans ONLY This chart further reduces the fund categories into one of six categories: bonds, blended funds, commodities, stocks, other, and unallocated (cash). For each category, the average allocation is shown for each month. Since we have included a category for unallocated (cash), the total allocation is always 100%.
The two charts below are the same chart, but different time frames. Both charts show the average allocation to (broad) fund categories. The first chart shows the prior 4 years data, while the second chart includes data back to 01-JAN-2002. Both charts are stacked bar charts, meaning the size of each color (fund category) indicates that categories average allocation during the period.
Since the end of the last month did not correspond to a quarter end, the only data included in these two charts are for monthly plans. (That is why the Strength and Confidence chart above includes bond related funds, while the charts below only includes funds that are primarily stocks.)
Observation(s): - This was the first time in our modeling history period (going back to 01-JAN-2002) that all MONTHLY plans have ONLY included funds that are primarily stocks.
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posted Mar 8, 2013, 1:41 PM by paul dunn
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updated Mar 8, 2013, 7:31 PM
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February 2013 highlights:- "Large" is strong - 5 of the top 10 fund categories this month are large: foreign large value, foreign large blend, large value, large blend, and large growth.
- Blended funds - 4 of the top 10 fund categories are blended funds: foreign large blend, small blend, mid-cap blend, and large blend.
- Foreign is also strong - This months top 3 categories are all foreign: foreign large value, foreign large blend, and diversified emerging markets.
Definitions and detailsStrength - Our model will allocate higher percentages of a portfolio to funds that are providing higher volatility adjusted returns. A "strength" of 100% means that in all portfolios where a fund category is given an allocation, it is given the maximum available allocation. Lower percentages indicate less average allocation. Confidence - A "confidence" of 100% means that every fund of a given category, in every portfolio, received some allocation. Lower percentages indicate less frequent allocation across the portfolios. So higher strength means that when we allocate a fund category, we are giving it more average allocation, while higher confidence means that a fund category is being given some allocation in a higher percentage of all available funds of that category. Our model will reduce allocations to zero during bear markets. Thus a positive strength indicates we are allocating (buying) a given fund category.
Thanks for reading! |
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