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…
- US Equity (VFINX, VXUS, DFUSX, VTSMX)
- Fidelity Low Priced Stock (FLPSX)
- Lord Abbett Bond Debenture (LBNDX)
Losers (advisor flows FROM these investments increased substantially):
- Long Treasury Bond (TLO, TLT)
- DWS Global Infrastructure (TOLLX)
- Putnam Capital Spectrum (PYSAX, PYSYX)
More selling in rate-sensitive categories like long bonds (Treasurys with 20+ durations). This follows last week’s activity in advisor-managed portfolios, which was characterized by a burst of buying in floating rate bonds on the move higher in global bond yields.
Although historically the long bond has been a great piece of protection against equity market sell-offs, the conventional wisdom of allocating to them is being challenged on a daily basis as the drumbeat for rising rates gets louder. The question now is whether or not the non-correlated nature of the long bond will be a good enough diversifier if the reason that stocks sell off is rate fears.
Some of that money could be finding its way into the Lord Abbett Bond Debenture fund listed in the winner’s column this week. That fund is described as being multi-sector and flexible, with a 30-day annualized yield listed at 3.76% on the company’s website.
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).