March 2007 Score Card — Part II: Asset Allocation

Posted by Sun on April 3, 2007
Post viewed 915 times, 1 so far today

Two months ago, I took a look at the asset allocation of my taxable mutual fund investment. A result of that review was the decision to sell on of the large-cap holdings, CSVFX, as I found my investments didn’t have enough exposure in the mid- and small-cap categories. CSVFX was unloaded in February and part of the proceeds was used to purchase Vanguard Small-cap Value ETF (VBR) to boost the small-cap investment in my portfolio.

Using Morningstar’s Instant X-ray (here’s an entry on how to use Morningstar to research mutual funds), I entered my mutual fund holdings (symbols and market values) last night and pulled the latest asset allocation, which looks like this:

aa0307.png

Compared to the asset allocation priori to the change, the domestic stocks part increased about 1% and overall foreign stock investment shrank about 2%. At the same time, bond holdings remains at the same level. The investment style box of now is more balanced between large-cap and mid-/small-cap stocks:

div0307.png

which shows that I have 53% of the total investments in large-cap stocks (59% earlier) and 46% in mid-/small-cap stocks (42% before). Meanwhile, the cost of owning my current mutual funds stays low. According to Morningstar,

  • Average mutual fund expense ratio: 0.85%
  • Expense ratio of similarly weighted hypothetical portfolio: 1.36%
  • Estimated mutual fund expenses: $826.84

I am not planing for any drastic change any time soon. If I will, then my next targets will be CGM Focus Fund (CGMFX), which has generated heavy capital gains last year due to 300+% turnover ratio, and T. R. Price Emerging European and Mediterranean Fund (TREMX) as I will keep Dodge & Cox International Stock Fund (DODFX) as my core foreign investment.

If you enjoyed reading this post, subscribe to the RSS feed or get it via email delivery.

Popularity: 19% [?]

If you enjoyed reading this post, please consider subscribing to my full RSS feed (What's RSS feed?). You can also subscribe by email to have daily updates delivered right to your inbox.

Featured Financial Products

Categories : About me, Investing, Mutual fund, Portfolio Tags: No Tags

Related Posts
Readers Who Viewed This Post, also Viewed
2 Comments
April 3, 2007

CGMFX have very good holdings and also a 5 star rating, but I feel it is taking a risk with Sirus Radio. I guess only time will tell.

Posted by Moneymonk
Share Your Thouhgts
Your opinion matters. Please use the form below to share your thoughts on March 2007 Score Card — Part II: Asset Allocation with us.

(required)

(required)


Recent Entries