Each quarter our team evaluates all investments held in our models to ensure we considering market trends, economic outlook, investment quality and performance. After careful evaluation, we have made the following changes.
Core Model
- The core model is composed of mutual funds and ETF’s spanning equities, fixed income, and alternatives. This blended approach provides diversification between sectors and investment categories.
- This model has 5 allocations that differ based on risk tolerance (Conservative, Moderate Conservative, Moderate, Moderate Aggressive and Aggressive). While the positions themselves are the same in each of the 5 allocations, the difference comes from the weighting percentage of each investment.
- For example – The Conservative allocation has a much larger weighting in fixed income and alternatives. Whereas the Aggressive allocation has a much lower weighting in fixed income and alternatives, and a higher weighting in equities.
- Changes for this quarter include investing the money market funds we had set aside during the geopolitical and tariff unknowns, and increasing our weighting into equities.
- Many mutual fund companies are now offering the same strategies in the form of an actively managed ETF. This reduces the internal fees of the investment and provides tax advantages. In the equity sleeve we converted several mutual funds to active ETF equivalents and increased the overall weighting to equities. Given the current conditions we feel now is a good opportunity to invest the money market funds we set aside.
- We have also made changes in the bond allocation to keep our yield the same. We have slightly increased duration, and added a fund that provides exposure to private credit.
- Within our alternative sleeve we focus on strategies that are not correlated to traditional investments such as stocks and bonds. These strategies include commodities such as gold and real assets.
| Beta | Alpha | Standard Deviation |
|
| Blended Benchmark (S&P 500 and Aggregate Bond Index) | 1.00 | 0 | 9.87 |
| Feldmeyer Financial Core Model – Moderate Allocation |
0.80 | 0.83 | 9.45 |
*Metrics are using the Moderate Allocation.
Additions:
- Federated Hermes MDT Large Cap Growth ETF (FLCG)
- BlackRock Large Cap Value Active ETF (BLCV)
- Janus Henderson Mid Cap Growth Alpha ETF (JMID)
- John Hancock Disciplined Mid Cap Fund (JVMIX)
- Janus Henderson Small Cap Growth Alpha EFT (JSMD)
- iShares Morningstar Small Cap Value (ISCV)
- AB International Low Volatility Equity (ILOW)
- JPMorgan International Value (JIVE)
Sells:
- BNY Mellon Equity Income Fund (DQIRX)
- Janus Henderson Enterprise Fund (JMGRX)
- Rowe Price Mid Cap Value Fund (TRMCX)
- Hartford Schroders International Stock (SCIEX)
- Janus Henderson Responsible International Dividend Fund (HDIVX)
- LoCorr Macro Strategies Fund (LFMIX)
Bond Model
- With the updates made to the bond model, our current yield is 6.08%, and the model is selling at a discount of $95.74.
- The funds selected improve our risk metrics. Our alpha has increased, and our beta has decreased compared to the Aggregate Bond index.
- For reference, alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative alpha indicates the portfolio has underperformed, given the expectations established by beta.
| Beta | Alpha | Standard Deviation |
|
| Aggregate Bond Index |
1.00 | 0 | 7.67 |
| Feldmeyer Financial Bond Model |
0.69 | 3.36 | 5.27 |
Additions:
- Lord Abbett Flexible Income (LLIIX)
- iShares Flexible Income ETF (BINC)
Sells:
- PGIM High Yield (PHYZX)
- John Hancock MBS ETF (JHMB)
High Dividend Model
- Our high dividend model currently has a dividend yield of 9.85%
- The high dividend model has held steady during the volatility while still producing income. At this time, we are not making changes with this model.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.31 |
| Feldmeyer Financial High Dividend Model |
0.79 | 4.95 | 17.01 |
Stock Model
- The stock model has our top picks for the remainder of 2025.
- We have added stocks that give us exposure to the defense and utility sectors. We believe these can perform well given the current economic and market conditions. We also added Dollar General (DG) as a hedge against inflation and potential economic slowdown concerns.
- We have reduced our cash position to 7% and continue to monitor the markets closely to reinvest when appropriate.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.31 |
| Feldmeyer Financial Stock Model |
0.80 | 11.13 | 13.33 |
Additions:
- Amphenol Corp (APH)
- Axon Enterprises (AXON)
- L3 Harris Technologies (LHX)
- Republic Services Group (RSG)
- Dollar General (DG)
Sell:
- Fidelity Money Market (FDRXX)
Investment advisory services offered through OneSeven LLC, a registered investment advisor. One Seven and Feldmeyer Financial Group are independent of each other. For a complete description of investment risks, fees and services, review the On Seven firm brochure (ADV Part 2A) which is available from your Investment Advisor Representative or by contacting OneSeven.
This presentation does not take into account your particular investment objectives, financial situation or risk tolerance and may not be suitable for all investors. Investments and/or investment strategies involve risk including the possible loss of principal. The presentation is not intended to project the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. There is no assurance that any investment strategy will achieve its objectives.
The S&P 500 index is designed to be a broad based unmanaged leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe or representative of the equity market in general. The Bloomberg US Aggregate Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.