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 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 increasing our exposure in the small cap space, and reducing our exposure in the international space. Based on several market indications, we feel there is good opportunity for growth in the small cap category.
- We have also made changes in the bond allocation to shorten the duration and increase the yield.
- We have added two positions to the alternative sleeve. With these changes we have increased our weighting in commodities, and added a position that will create income and also provide an opportunity for growth. Our alternative sleeve focuses on strategies that are not correlated to traditional investments such as stocks and bonds.
| Beta | Alpha | Standard Deviation |
|
| Blended Benchmark (S&P 500 and Aggregate Bond Index) | 1.00 | 0 | 11.99 |
| Feldmeyer Financial Core Model – Moderate Allocation |
0.95 | 1.39 | 11.58 |
*Metrics are using the Moderate Allocation.
Additions:
- John Hancock International Dynamic Growth (JIJIX)
- Hartford Schroeders International Stock (SCIEX)
- PGIM Short Duration High Yield Income (HYSZX)
- BlackRock Gold ETF (IAU)
- JPMorgan Equity Premium Income (JEPI)
Sell:
- MFS International Growth Fund (MQGIX)
- Goldman Sachs Internation Equity Insights (GCIIX)
Bond Model
- With the updates made to the bond, our current yield to 6.35%, and the model is selling at a discount of $95.33.
- The funds selected improve our risk metrics. We have increased our alpha and decreased our beta 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 | 7.62 |
| Feldmeyer Financial Bond Model |
.78 | 2.53 | 6.47 |
Additions:
- DWS High Income (KHYIX)
- PGIM Short Duration High Yield Income (HYSZX)
High Yield Model
- Our high yield model currently has a dividend yield of 9.86%.
- The changes we are implementing improve our yield, as well as increasing our alpha and keeping our beta below the benchmark.
- Alliance Resources LP (ARLP)
- JPMorgan Equity Premium Income (JEPI)
- FirstTrust Energy Income Partners Enhanced Income (EIPI)
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.86 |
| Feldmeyer Financial High Yield Model |
.79 | 4.95 | 17.01 |
Additions:
Sell:
Stock Model
- The stock model has our top picks for 2025. Due to rising concerns over tariffs, we have reduced exposure to holdings that may be most strongly affected by the implementation of tariffs. We have also added several holdings that have strong financials and positive outlooks for 2025.
- We continue to have exposure across multiple sectors of the S&P 500.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.86 |
| Feldmeyer Financial Stock Model |
1.13 | 17.87 | 22.03 |
Additions:
- Ralph Lauren (RL)
- Raymond James Financial (RJF)
- Vistra Corp (VST)
- Paypal Holdings (PYPL)
- Booking Holdings (BKNG)
Sell:
- Dollar General (DG)
- Ollie’s Bargain Outlet (OLLI)
- Sunoco (SUN)
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.