Franklin Portfolio Review: 30 June 2023

Amsterdam

As one of four Sector BPI portfolios, the Franklin continues to benefit from the sector investing model.  Those benefits, while early in the hypothesis phase, are beginning to show promise as we can see from this data.  Since the last review or update the Industrial (VIS) was sold out of the Franklin as the TSLO was struck.  Since no sectors are currently in the oversold zone indicating a Buy, what to do with the remaining cash is discussed below.

Franklin Security Recommendations

Six of the eleven sectors currently hold shares based on past recommendations.  Technology (VGT) is calling for a Sell.  However, the Franklin does not hold any shares in VGT and there are no Buy recommendations.  When this is the situation we look to see which ETF is ranked highest using the Rank found in 5th column from the right.  Pay no attention to VCR as that is a sector ETF.  Next on the list is ESGV with a rank of two (2).  Several limit orders are in place to purchase shares of ESGV.  Since I started writing this blog one of those limit orders was struck so the Franklin now holds shares in ESGV.

Franklin Performance Data

Since 12/31/2021 the Franklin is in a dead heat with SPY or the S&P 500.  The portfolio is outperforming all other potential benchmarks.

Franklin Risk Ratios

While the Franklin lost a little ground to the benchmark since May, overall the slope of the Jensen Alpha is positive.  When second quarter dividends are recorded the Franklin may pull ahead of SPY.

Pay most attention to the Jensen Alpha or Jensen Performance Index and the Information Ratio.  Those values should be in positive territory whereas both are currently negative.

The next six months will further test the Sector BPI model as I am looking for a rather flat market to prevail.

Buying Guidelines For BPI Model Portfolios: 9 December 2022

Tweaking Sector BPI Plus Model: 20 May 2023