Did you know?
- The Buy/Hold Plus performance figures are the returns actually experienced by our clients AFTER ALL FEES.
- Check your Performance Statements from your current managed account program. Most TFS used Managed Account Programs have unaudited, before fees, non-client correlated performance.
- Much time, effort and expense is spent to have our performance audited.
- The Buy/Hold Plus 2015 Independent Accountant’s Report ending 2015 can now be found on our website.
Is Your Managed Account Performance Audited? Most are not. What are you portraying to your clients?
Our Quarterly Fund Replacement Review has been performed. In keeping with the program’s goal of maintaining only the highest quality funds in the investment portfolio, the following changes have been implemented: Continue reading
As you know, 401k PLUS partners with Retirement Management Systems (RMS) to provide professional management of your clients’ work plan assets.
Recently, RMS has changed their pricing structure which made it necessary to change ours. They have switched to a percentage of assets while we are keeping the simplicity with low, flat fees.
Click here to see the below fee schedule for all new clients going forward. Continue reading
Our Quarterly Fund Replacement Review has been performed. In keeping with the program’s goal of maintaining only the highest quality funds in the investment portfolio, the following changes have been implemented:
- iShares North American Natural Resources (IGE) exchanged for Vanguard Materials ETF (VAW) — Due to the recent volatility in the Natural Resources asset class, it provided us with an opportunity to harvest some short-term tax losses by substituting IGE for the materially similar VAW.
- RS Select Growth Y (RSSYX) exchanged for iShares Mid Cap Growth (IWP) and Eagle Mid Cap Growth I (HAGIX)
The fund families currently owned in model portfolios are now: Laudus, Franklin Templeton, SunAmerica, iShares, J.P. Morgan, T. Rowe Price, Delaware, Eagle, Oppenheimer, MFS, AMG Managers, Weitz, Metropolitan, Vanguard, Western Asset, and TCW.
For the performance of each portfolio model, or additional information on any of the extensive ongoing management benefits, please feel free to contact Tara Giarraffa Recupido at (800) 614-2980 or visit BuyHoldPlus.com.
Fear of rates rising and causing a large price depreciation in fixed income funds continues to be a very concerning topic. Our previous article ‘Rising Rates: How are you prepared?’ addressed some of the diversification techniques and how greatly varying the correlation can be between different fixed income asset classes. This recent flyer from Franklin Templeton, ‘Interest Rates and Your Fixed Income Investments’ , addressed an additional component: the role income plays in a fund’s total return.
A fixed income fund generates return in two main ways: price appreciation and income from the underlying holdings. Just because the underlying holdings depreciate, does not mean the fund will necessarily have a negative total return after factoring in the income generated. The flyer does a great job of visually displaying this concept in a year by year analysis of Barclays U.S. Aggregate Index’s total return broken up by price appreciation/depreciation and income. Furthermore, it looks at the total return for Government, Municipal, and Corporate Bonds over the last 20 years (ending December 31, 2012) and shows this same breakdown – over 90% of the total return is income derived!
No one knows when rates are going to rise, only that it is going to happen at some point in the future. Instead of asking when they will, the better question is: “What happens when rates do go up?”
Focus is shifting more and more towards this question, so education on what affects rates and what can be done to combat their eventual increase is of much importance.
Joseph P. Okaly, the Assistant Portfolio Manager at Buy/Hold Plus, addresses this question, so follow on below to read an article overview or click to read the full Rising Interest Rates: How are you prepared? article.