At the request of so many investment advisors, my friends at Riskalyze share the big trends in the assets going into and coming out of advisor portfolios every week. The underlying data is aggregated from hundreds of thousands of client accounts across the $44 billion and counting that advisors manage on the Riskalyze platform*. I hope we can uncover interesting trends for you each week…
- International (VXUS, IGFFX, VTIAX)
- Mid-Cap Equity (JVMIX, VIMAX, IJJ, FNX)
- Total Return Bond (BOND, PTTPX, JHBIX)
Losers (advisor flows FROM these investments increased substantially):
- Ivy Worldwide (IVWAX)
- Deutsche Global Infrastructure (TOLSX)
- BioTech (FBIOX, IBB, FBTIX)
Josh here – there’s a bit of performance-chasing evident in last week’s data, as advisors allocate heavily to two of this year’s brightest spots both at home and abroad.
The two biggest additions to advisor portfolios last week – international stock funds and mid-cap focused US equity funds – both cover areas of the global investment markets that have far outpaced the S&P 500 index so far in 2015. The MidCap 400 index was up over 6% YTD going into Friday – roughly triple the return of the large cap core index, as per Morningstar.
As for international stocks, let’s just say that last year’s “worst houses in a bad neighborhood” have become this year’s best – with the MSCI World ex-USA index posting a 10% gain in dollars and an even higher return in local currencies.
Suffice it to say, advisors may be looking to get their portfolios in better alignment to capture some of these trends ahead of the snoozy summertime that fast approaches. But will these trends persist into the second half of the year?
A word about Riskalyze:
In my practice, we use Riskalyze software tools to help assess clients’ true risk tolerance and to test portfolio configurations that match up accordingly. It’s changed our practice for the better, as I explain here.
*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).