Each quarter our team evaluates all investments held in our models to ensure we are 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 reducing high yield exposure, increasing quality in fixed income, and adding a slightly overweight exposure to midcap equities. We also added the alternative weightings to diversity against downside risk.
| Beta | Alpha | Standard Deviation |
|
| Blended Benchmark (S&P 500 and Aggregate Bond Index) | 1.00 | 0 | 12.74 |
| Feldmeyer Financial Core Model – Moderate Allocation |
.90 | 1.58 | 11.85 |
*Metrics are using the Moderate Allocation.
Additions:
- EIBAX – Eaton Vance Total Return Bond Fund
- JDJIX – John Hanock Divrsified Macro Fund
- LOTIX – LoCorr Market Trend Fund
- PCLNX – PIMCO Comodities Plus Strategy Fund
- FEREX – First Eagle Global Real Assets Fund
- LFMIX – LoCorr Macro Strategies Fund
- BIMBX – BlackRock systematic Multi-Strategy
- GMSSX – Goldman Sachs Managed Futures Strategy Fund
Sell:
- PHCIX – Virtus Newfleet High Yield Fund
- FIKQX – Fidelity Advisor Investment Grade Bond Fund
- MFIIX – MFS Income Fund
- LCRDX – Lord Abbett Credit Opportunities
- VMFIX – Virtus Newfleet Multi-sector Intermediate Bond Fund
Bond Model
- The bond model has a yield of 5.74%% and is selling at a discount of $95.49.
- We extended both duration and maturity as discussed in our market update. We have increased duration from 5.11 to 5.44, and extended the average maturity from 8.39 years to 9.50 years.
- Funds are in the top quartile for their class, compared to their peers. 85% of the holdings in the portfolio have a rating of BB or better
| Beta | Alpha | Standard Deviation |
|
| Aggregate Bond Index |
1.00 | 0 | 7.24 |
| Feldmeyer Financial Bond Model |
.95 | 1.46 | 7.32 |
Additions:
- EIBAX – Eaton Vance Total Return Bond Fund
Sell:
- PHCIX – Virtus Newfleet High Yield Fund
- FIKQX – Fidelity Advisor Investment Grade Bond Fund
- MFIIX – MFS Income Fund
- LCRDX – Lord Abbett Credit Opportunities Fund
- VMFIX – Virtus Newfleet Multi-Sector Intermediate Bond Fund
High Yield Model
- Our high yield model has a dividend yield of 10.28%.
- We have made the decision to adjust the holdings based on current dividend yield and company forecasts for 2024.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.54 |
| Feldmeyer Financial High Yield Model |
.72 | 3.42 | 15.81 |
Additions:
- LSPIX – LoCorr Spectrum Income
Sell:
- PXD – Pioneer Natural Resources Company
Stock Model
- The stock model has our top individual stock picks for 2024.
- We have exposure in a diverse mix of sectors in the S&P 500 including technology, consumer cyclical, financial services, and communication services. Based on research and information from our corporate partners, we anticipate medium sized companies to excel in 2024 and have positioned the stock model to have exposure to large and medium size companies.
- Changes this quarter reflect an added diversification of adding to the healthcare sector by adding Eli Lilly into our model.
- We are holding Intel (INTC) the next quarter but are watching closely and will adjust intra-quarter if necessary.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.54 |
| Feldmeyer Financial Stock Model |
1.16 | 11.04 | 21.41 |
Additions:
- LLY – Eli Lilly
Sell:
- ZTS – Zoetis, Inc.
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.