Since this review happens on the last trading day of 2015, I will post a limited update as none of the fourth quarter dividends are recorded. Additional information will be presented later. As one of the passively managed portfolios [Others are Schrodinger and Pasteur] the Copernicus is following a Strategic Asset Allocation model as laid out in the following Dashboard. This information comes right out of the TLH Spreadsheet.
Copernicus Dashboard: Percentages with the white background are the target values while those with the colored background indicate over target (red), under target (purple), and within the target range (light green). After the December statement is available and all dividends are recorded, one of the first asset classes to receive attention will be mid-cap value as it is 2.1% under target. The next asset class to receive attention will be bonds and income. I don’t know if increasing the percentages in these two asset classes will be sufficient to bring large-cap growth and small-cap growth within target, but that is eventually the goal.
Passively managed portfolios are easy to handle, particularly if one is using software such as the TLH Spreadsheet as all the recommendation calculations are handled automatically.
Rebalancing Data: A “critical ETF” is selected for each primary asset class and the following table lays out how many shares of a particular security are needed to bring the asset class back into balance. For example, purchasing 50 shares of VOE will bring mid-class value back within the target ranges. Fourth quarter dividends will provide additional cash to bring under target percentages back into balance.
