March 11, 2010 11:06 PM ET
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MosaicFinancial
Strategy Strategic Asset Allocation
Category Growth
Average trade replication time 2 minutes
853 Views
2 Subscribers
Fees 0.75% of invested assets p.a. Subscription Min $5,000.00*
This model is designed to approximate the holdings of a typical Mosaic Financial Partner's client. Mosaic Financial Partners, Inc. is a financial planning firm serving high net worth individuals and headquartered in San Francisco. The portfolio is strategically allocated across asset classes.
Mosaic Financial uses Modern Portfolio Theory to develop a strategic asset allocation appropriate for a long-term investor with typical risk tolerance. This model is well diversified across US & international equities, fixed income and "alternative" investment strategies. It uses multiple asset classes that are not correlated to control risk. It selects low cost investment vehicles, typically... [more +]
Mosaic Financial has developed his allocation models via specialized software (Ibbotson EnCorr) to research historical asset class returns, risk (standard deviation) and correlations. It evaluates risk exposure by reviewing how the portfolio performed in varying market environments, including market downturns. It uses Morningstar Principia software as a starting point for researching ETFs that... [more +]
The model is well diversified and will include 15-20 different investments (typically ETFs) representing different asset classes or strategies. It includes "alternative" investment strategies, such as commodities, timber and managed futures to control risk via their low correlation to traditional equities. All asset classes have a target allocation percentage. When an asset class varies from its... [more +]
Mosaic Financial intends for the portfolio to be low turnover to minimize costs but will sell a fund if it no longer represents the best vehicle to track a given asset class or strategy. Some factors he evaluates include the benchmark the fund is attempting to track, its expense ratio and level of trading activity.
None.
Investment Report
Through late February, our diversified portfolio is still within tolerance so no rebalancing trades are required. We designed this portfolio to minimize the need for trading which saves transaction costs and avoids the performance drain caused by bid/ask spreads.
For taxable accounts, low trading activity also avoids realizing capital gains. These costs may not appear to be significant but over...
March 2010
Personal Background
- Designed by Mosaic Financial Partners, Inc., a financial planning firm serving high net worth individuals and headquartered in San Francisco
- David Cowles, the Firm's Director of Investments has a Masters Degree in Financial Planning, a CFP and a CPA
Experience on Covestor.com‡
MosaicFinancial's Covestor.com Profile
- Overperformed S&P 500 for 7 of their 16 months on Covestor.com#
- Return Since Inception: 28.27% (November 2008)
- Last 3 Months Return: -0.68% (S&P 500 0.81%)
- Annualized Return: 21.53%
- Sharpe Ratio: 1.22 (S&P 500 -0.09)
- Maximum Drawdown: -17.78% (S&P 500 -56.78%)
Performance
| Inception December 18, 2009 | Model Manager | S&P 500 |
|---|---|---|
| Return Since Inception (%) | 1.63 | 3.91 |
| Month to Date Return (%) | 3.34 | 3.72 |
| Sharpe Ratio | 0.60 | 1.24 |
Monthly Performance (%)
| Month | Return | S&P500 | Outperformance | Risk | Performance |
|---|---|---|---|---|---|
| Feb | 1.70 | 2.85 | (1.15) |
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| Jan | (2.72) | (3.70) | 0.98 |
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The performance of the model manager's account has been calculated by CVIM on a daily time-weighted basis including cash and broker commissions. These returns do not reflect any CVIM suitability or risk score restrictions and are exclusive of CVIM fees. Therefore, they do not represent the performance of the CVIM model available for subscription. Benchmark returns have been calculated by CVIM using a time-weighted calculation of daily valuations and do not include cash or transaction costs. Please see the additional disclosures below.
Top Holdings
| Symbol | Security | Exchange | Allocation (%) |
|---|---|---|---|
| VTI | VANGUARD TOTAL STOCK MARKET ET | AMEX | 13.85 |
| VEU | VANGUARD FTSE ALL-WORLD EX-U | AMEX | 13.78 |
| BSV | VANGUARD SHORT-TERM BOND ETF | AMEX | 10.26 |
| IWW | ISHARES RUSSELL 3000 VALUE | AMEX | 9.29 |
| TIP | ISHARES BARCLAYS TIPS BOND FUN | NYSE | 5.11 |
Total Holdings 19
Data displayed is as of market close: March 10, 2010
* The Subscription Minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by CVIM, based on the characteristics of the underlying model. It should not be considered as specific investment advice for your investment situation.
‡ Covestor.com performance data has been calculated by Covestor on a daily time-weighted basis of the equity positions of the account and is exclusive of any commissions and cash in the portfolio. The member's performance on Covestor.com, based on a separate account, may not reflect the strategy employed to manage the model available for subscription on CVIM. Please see additional disclosures below.
# Since the model manager's inception in Covestor.com
It should not be assumed that any information discussed herein will prove to be profitable or that decisions in the future will be profitable or provide similar results. The information set forth herein is not a substitution for personalized investment advice, and should not be construed as a recommendation to purchase or sell a particular security or to subscribe to a particular model.
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