Salt evaporation pools in the mountains of Peru.
Franklin, one of the four Dual Momentum™ portfolios is up for review this morning and what a contrast in performance compared with the Kepler. The Franklin struggled to show a positive IRR right out of the blocks as it was launched during a bear market. Follow along with this review to see how we are going to manage the portfolio to get it back on track.
Franklin Dual Momentum™ Recommendation
One of the first moves I made was to lengthen the look-back period. The Franklin is now operating where the look-back is essentially one year. Check the green arrow. 98% of the weight is given to the 252 period which is equivalent to one year.
The current recommendation is to place 100% of the portfolio in SCHP or an inflation protection security. The Franklin holds a few shares of ESGV and BND, a bond Exchange Traded Fund (ETF). I plan to leave things as they are and make no changes.
Franklin Performance Data
Since 11/30/2020 the annualized Internal Rate of Return is negative 4.8% (-4.8%). This is a slight improvement since the last update.
Franklin Risk Ratios
To see if moving to the longer look-back period is having any effect, pay attention to the Jensen Performance Index. The -5.41 value is an improvement over the values of May, June, and July so we are showing some improvement. The fact that the Sortino and Omega ratios are both positive is another sign there is life in the Franklin. It is going to be a long slog to get this portfolio into a position where the Jensen is positive. Patience is the key at this point.
Thoughts on “Dividend Income Investing” and other Philosophical Topics.
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