Jackson Lake – Grand Tetons
Back in April I moved the Huygens over to an Asset Allocation management style. Several other portfolios will follow this trend as I am setting portfolios up for minimum trades with even fewer sell transactions. This will reduce taxes in taxable accounts.
Huygens is currently overloaded with VTI and VOO. I’m reluctant to sell these shares so as to bring other assets into balance. More on this later.
Huygens Asset Allocation Quiver
Below is the asset allocation plan for the Huygens. Maximum percentages are found in the third column from the left and the out-of-balance percentages are located on the far right.
The goal is to keep each asset class within + or – 0.5% if the recommended percentage. If I choose not to sell shares of VTI and VOO it will take a number of months to bring all asset classes within balance.
Huygens Manual Risk Adjustments
If I were to rebalance the Huygens immediately, the Shares Required column lay out the necessary adjustments. The current plan is to not sell anything, but to use future dividends to build up asset classes most out of balance. Priority will be given to those asset classes ranked highest in the Kipling Spreadsheet Tranche Worksheet.
Huygens Performance Data
While I am still using the SPY as the benchmark in this review, I will likely change the standard in the future. SPY is not an appropriate benchmark for a portfolio carrying a high percentage of fixed income securities.
As a reader, do you have a benchmark recommendation? AOA and AOR are possibilities. Post your recommendation and logic in the comment section.
Huygens Risk Ratios
Below are the five risk ratios for the Huygens. Pay most attention to the Jensen, Information, and Sortino in that order. A new benchmark, such as AOR, will make quite a difference in the values for several of these ratios.
Huygens Asset Allocation Portfolio Review: 10 April 2024
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