Franklin Sector BPI Portfolio Review: 9 February 2024

Ireland

Franklin is the Sector BPI portfolio schedule for review today.  I adjusted the Maximum Asset Allocation percentages for the three U.S. Equities in order to emphasize VOO as it is the S&P 500 option.  Holding more shares of VOO will keep the Franklin closer to the S&P 500 (SPY) standard.

Franklin Security Holdings

Below is the investment quiver and current holdings in the Franklin.  A few days ago all shares of VAW were sold out of the Franklin leaving only a few shares in the sector ETFs.  At this time we are waiting for one or more of the sectors to move down into the oversold zone.  In the meantime we will invest in U.S. Equities (VTI, VOO, and/or ESGV).

Franklin Manual Risk Adjustments

The current recommendation is to add a few more shares to VTI.  I have limit orders in place to accommodate the recommendation.  In addition, limit orders are in place to use up the available cash by investing in more shares of VOO.

Franklin Performance Data

Since 12/31/2021 the Franklin has outperformed the SPY benchmark.  The delta is marginal, but still on the positive side.

Franklin Risk Ratios

Based on the Information Ratio we see the Franklin is barely outperforming SPY.  When risk is factored into the analysis, the Franklin lost ground as we see from the Jensen Alpha value.  This despite a small lowering of the risk-free interest rate.

The slope of the Jensen is positive, another encouraging signal the Franklin is performing rather well.