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TransEconomics tracks three model portfolios. Clients receive details on their composition in addition to individualized strategies and portfolio management services. To request more information, please write to firstname.lastname@example.org.
Our model portfolios and their benchmarks
We launched our three model portfolios on 30 December 2011 assuming an initial investment of $US 10,000.
All holdings are exchange traded funds (ETFs). Exchange traded funds fluctuate in value during trading hours. So, in any given time period, their valuation can rise or fall. Most funds, additionally, pay dividend yield.
We report our portfolio performances in total U.S. dollar total returns. Total returns take into account both capital appreciation and income. Our data source for total returns is Morningstar (via Yahoo! Finance). To compute total returns, Morningstar assumes prompt reinvestment of all dividend income in the same security that produced it.
Our short-term model portfolio, La Carpeta Negra Short Term (LCN-ST), is designed for clients whose investment horizon is 6–24 months. Clients replicating it are willing to risk losing capital for up to six months in the hopes of earning sufficient return over periods longer than six months to at least keep up with U.S. CPI inflation. Real USD wealth protection, then, is the aim of our clients who replicate LCN-ST.
This portfolio’s “benchmark” is the latest annual U.S. CPI headline inflation rate as reported by the U.S. Bureau of Labor Statistics.
We allocate La Carpeta Negra Medium Term (LCN-MT) for clients whose investment horizon is 2–5 years. They’re willing to risk losing capital for up to two years in the hopes that over longer periods they’ll beat our benchmark—a virtual portfolio started 30 December 2011 with 40% in the Morgan Stanley All Country World Stock Index (MSCI ACWI) and 60% in the Barclays Capital U.S. Aggregate Float Adjusted Bond Index. This virtual portfolio is rebalanced every year, at the end the last market day.
We compute this benchmark on the basis not of these two indices directly but rather of two ETFs that track them—namely, iShares MSCI ACWI Index (stock symbol: ACWI) for the stock index and Vanguard Total Bond Market ETF (BND) for fixed income.
La Carpeta Negra Long Term (LCN-LT) is for clients whose investment horizon is five or more years. They can bear capital losses if necessary for up to five years in the hopes that, over periods longer than five years, they’ll beat our benchmark.
This benchmark is again a virtual portfolio begun 30 December 2011, this time with a 60% allocation to the Morgan Stanley All Country World Stock Index and 40% to the Barclays Capital U.S. Aggregate Float Adjusted Bond Index. This virtual portfolio is also rebalanced every year, at the end of the last market day.
To compute this benchmark, we use the same two index proxies as we do for LCN-MT.
La Carpeta Negra is not an individualized advisory service. Investing is risky. Securities and portfolios move up and down in value; their valuations can drop to below the amounts of initial capital invested. Please read this important disclaimer.