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 reducing our overall exposure to equities and adding to our money market position.
- In the equity sleeve we removed our exposure to the small cap space, and the emerging markets space. Given the current conditions we feel these categories could be most impacted by the new tariff policies.
- We have also made changes in the bond allocation to shorten the duration while keeping the same yield.
- Within our alternative sleeve, we have added a fund that has little correlation to the equity market and bond market. 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 | 9.87 |
| Feldmeyer Financial Core Model – Moderate Allocation |
0.89 | 1.53 | 8.95 |
*Metrics are using the Moderate Allocation.
Additions:
- Janus Henderson Enterprise Fund (JMGRX)
- AB Short Duration High Yield (SYFI)
- BlackRock Global Equity Market Neutral Fund (BDMIX)
- Fidelity Money Market Fund (FDRXX)
Sells:
- Federated Hermes MDT Mid Cap Growth Fund (FGSIX)
- Putnam Small Cap Growth (PSYGX)
- Invesco Small Cap Value (VSMIX)
- Eaton Vance Emerging and Frontier Countries Equity Fund (EICOX)
- DWS High Income (KHYIX)
- LoCorr Market Trend Fund (LOTIX)
Bond Model
- With the updates made to the bond model, our current yield to 6.25%, and the model is selling at a discount of $94.98.
- The funds selected improve our risk metrics. Our alpha remains the same 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 |
.73 | 2.17 | 6.13 |
Additions:
- AB Short Duration High Yield (SYFI)
Sells:
- DWS High Income (KHYIX)
High Yield Model
- Our high yield model currently has a dividend yield of 9.43%.
- The changes we are implementing will help maintain our yield as well as reducing our beta.
- Nuveen Preferred Securities & Income (JPI)
- Western Midstream Partners (WES)
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.31 |
| Feldmeyer Financial High Yield Model |
.79 | 3.28 | 16.69 |
Additions:
Sells:
Stock Model
- The stock model has our top picks for 2025.
- Given the current market conditions, we have removed securities that are sensitive tariff risk including textile companies and grocery companies.
- We have also removed consumer discretionary stocks specifically related to travel and leisure industries due to recession risk.
- We have increased our cash position to 34% 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 |
0.77 | 7.79 | 13.93 |
Additions:
- Fidelity Money Market (FDRXX))
Sell:
- Deckers Brands (DECK)
- Ralph Lauren (RL)
- Sprouts Farmers Market (SFM)
- Booking Holdings (BKNG)
- Royal Caribbean Group (RCL)
- Broadcom Inc (AVGO)
- Home Depot (HD)
- Vistra Corporation (VST)
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.