Franklin Portfolio Review: 19 January 2023

Fountain and Girl

Franklin shed 40 shares of Energy (VDE) this morning as the market plunged lower.  In the following Sector BPI Model readers will see how well the Franklin is performing with respect to its benchmark.

Tomorrow I will check in on another Sector BPI portfolio to see if the selloff moved any of sectors into the Buy zone.  It is unlikely as most of the sectors were closer to the Sell zone than to the Buy zone.

Franklin Investment Quiver

After selling 40 shares of VDE, the Franklin is flush with cash.  I’ve set limit orders to purchase more shares of SCHP and to open up a position in SHV.

VGT and VOX are currently “languishing” in the neutral zone or where ETF sectors spend most of their time.

Franklin Performance Data

Over the past year the Franklin topped the AOA benchmark by nearly two percentage points.  The delta is even greater when comparing performance with the S&P 500 (SPY).

Franklin Risk Ratios

January values of 2023 don’t look all that great when compared with January of 2022.  The single anomaly is the Information Ratio or the ratio that measures how well the portfolio is performing with respect to its benchmark.  Only since I moved the Franklin to the Sector BPI model has the Information Ratio moved into positive territory.  The goal is to keep it that way.

The Franklin is going to be a good test portfolio to watch over this next year to see if this account will continue to outperform the AOA security.

Buying Guidelines For BPI Model Portfolios: 9 December 2022