Hi guys: As
@hank noted ... Here is how Old_Skeet rolls and manages a consolidated portfolio of 49 funds. My thinking is that if you can't manage what you have then you've got to many funds. Being a prior corporate credit manager for a regional distribution company I had to have a receivable system in place to manage a fairly large customer base. Thus, I developed my sleeve management system to help manage my family's investments. Through the years it has worked fairly well. You can read more about this below.
Sleeve Management System ... Last Revised on 03/01/2019
Now being in retirement here is a brief description of my sleeve management system which I organized to better manage the investments held within mine and my wife's portfolios. The consolidated master portfolio is comprised of two taxable investment accounts, two self directed retirement accounts, a health savings account plus two bank savings accounts. With this, I came up with four investment areas. They are a cash area which consist of two sleeves ... an investment cash sleeve and a demand cash sleeve. The next area is the income area which consist of two sleeves ... a fixed income sleeve and a hybrid income sleeve. Then there is the growth & income area which has more risk associated with it than the income area and it consist of four sleeves ... a global equity sleeve, a global hybrid sleeve, a domestic equity sleeve and a domestic hybrid sleeve. And, then there is the growth area where the most risk in the portfolio is found and it consist of five sleeves ... a global growth sleeve, a large/mid cap sleeve, a small/mid cap sleeve, a specialty/theme sleeve plus a special investment (spiff) sleeve. Each sleeve (in most cases) consist of three to twelve funds with the size and weight of each sleeve can easily be adjusted, from time-to-time, by adjusting the number of funds held along with their amounts. By using the sleeve system I can get a better picture of my overall investment landscape. I have found it beneficial to Xray each fund, each sleeve, each investment area, and the portfolio as a whole quarterly for analysis. My positions and sleeves can be adjusted from time-to-time as to how I might be reading the markets through using my market barometer and equity weighting matrix system. The matrix system is driven by the barometer. All my funds with the exception of those in my health savings account pay their distributions to the cash area of the portfolio. This automatically builds cash in the cash area to meet the portfolio's disbursements (when necessary) with the residual being left for new investment opportunity. Generally, in any one year, I take no more than a sum equal to one half of my portfolio's five year average return. In this way principal builds over time. In addition, most buy/sell transactions settle from, or to, the cash area with some net asset exchanges between funds taking place. In addition, my rebalance threshold is + (or -) 2% from my target allocation for both my income, growth & income and growth areas while I generally let cash float.
Consolidated Master Portfolio
Here is how I have my asset allocation broken out in percent ranges, by area. My neutral allocation weightings follow. They are cash area 1
5%, income area 3
5%, growth & income area 3
5% and growth & other asset area 1
5%. I do an Instant Xray analysis of the portfolio quarterly and make asset weighting adjustments as I feel warranted based upon my assessment of the market, my risk tolerance, cash needs, etc. I have the portfolio set up in Morningstar's portfolio manager by sleeve, by area and the portfolio as a whole for easy monitoring plus I use brokerage account statements, Morningstar fund reports, fund fact sheets along with their annual reports to follow my investments. I also maintain a list of positions to add (A) to, to buy (B), to reduce (R) or to sell (S). Generally, funds are assigned to a sleeve based upon a best fit basis.
Currently, my INVESTMENT FOCUS is to increase my portfolio's income stream through positioning new money into income generating assets while letting equities run on the high side to their upper threshold limit.
Target Asset Allocation (Balanced Towards Income): Cash 20%, Income 40%, G&I 30% & Growth 10%
Consolidated Master Portfolio Asset Allocation: Cash 16%, Income 39%, G&I 32% & Growth 13%
Rebalance Action Needed: Decrease Growth Area 1% and Increase Income Area 1%
CASH AREA: (Weighting Range 10% to 20%)
Demand Cash Sleeve ... Cash Distribution Accrual & Future Investment Accrual
Investment Cash Sleeve ... Money Market Funds: AMAXX, GBAXX, DTGXX, PCOXX, CD Ladder(A) &
Cash Savings(A)
INCOME AREA: (Weighting Range 30% to 40%)
Fixed Income Sleeve: CTFAX(A), GIFAX, LBNDX(A), NEFZX, PONAX(A) & TSIAX
Hybrid Income Sleeve: APIUX, AZNAX, BAICX, DIFAX(A), FISCX(A), FKINX, ISFAX(A), JNBAX, PGBAX & PMAIX
GROWTH & INCOME AREA: (Weighting Range 30% to 40%)
Global Equity Sleeve: CWGIX, DEQAX, DWGAX & EADIX(A)
Global Hybrid Sleeve: CAIBX, TEQIX & TIBAX
Domestic Equity Sleeve: ANCFX, FDSAX, INUTX(A) & SVAAX
Domestic Hybrid Sleeve: ABALX, AMECX, FBLAX, FRINX(A), HWIAX & LABFX
GROWTH & OTHER ASSET AREA: (Weighting Range 10% to 20%)
Large/Mid Cap Sleeve: AGTHX, AMCPX & SPECX
Small/Mid Cap Sleeve: AOFAX, NDVAX & PMDAX
Global Growth Sleeve: ANWPX, NEWFX & SMCWX
Miscellaneous, Specialty & Theme Sleeve: LPEFX, PCLAX & PGUAX
Ballast & Spiff Sleeve: No position held at this time.
