AWM - DFA and Vanguard Based Moderate Risk Portfolio
Data Updated as of 1/31/2015
Angelucci Wealth Management, LLC
Snyder, NY
Contact:
Phone:
Michael C. Angelucci
e-mail:
(716)807-7198
Web:
Mike@AWMfinancial.com
AWMfinancial.com
Angelucci Wealth Management, LLC (AWM) is a fee-only Registered Investment Adviser that specializes in investment management for
individuals, pension plans, trusts and foundations. Michael Angelucci, MBA, CFP has 8 years experience as a registered advisor and over 20
years experience as a corporate CFO managing retirement plans and foundation assets.
Investment Philosophy
Angelucci Wealth Management, LLC investment philosophy is passive asset class investing based on the tenets of Modern Portfolio Theory
(MPT).
MPT holds that for a given risk level there exists an optimal portfolio, and that the composition of the portfolio, as a whole, is more important
than the selection of any single security. Furthermore, attempting to beat the market through timing the market is unlikely to result in long term
investing success.
AWM also believes that optimal portfolios should be built with index funds. index funds are low cost, tax efficient, and don't deviate from their
style, all of which contribute to their long term success over their actively managed peers.
Therefore aligning investor risk tolerances to a proper optimal portfolio, the use of index funds and adhering to a buy and hold long term policy
will give the investor a high probability of investing success.
AWM - DFA and Vanguard Based Moderate Risk Portfolio
Asset Class
Balanced
Morningstar Category
Moderate Allocation
Risk Classification
Growth
Benchmark 1
Benchmark 2
DJ Moderate TR USD
Morningstar Moderate
Target Risk
Model Objective
The Moderate Risk Portfolio is ideal for an investor who is willing to accept an average level of stock market risk. The portfolio is allocated 55%
to equities and adheres to the principles of diversification by holding all equities in the global stock market. The bond allocation is primarily
composed of Vanguard's highly rated Short Term Bond Index and Total Bond Market Index funds.
A portfolio like this was down approximately -17% in 2008, the year of the financial crisis.
The portfolio measures itself against the S&P Dow Jones Moderate Portfolio 60% stock benchmark
Model Strategy
The AWM Portfolios were originally developed for use in 401K pension plans with the following goal in mind: To develop pre-engineered risk
based portfolios for participants that capture the performance efficiencies and low costs of index funds. To that extent, they also serve to meet
the high fiduciary and fee standard required of 401K plan offerings.
The equity component of the portfolios capitalize on the DFA Core I US stock market fund, the DFA International Core stock fund and the DFA
Emerging Market Core stock fund. Where others build equity portfolios with multiple sector mutual funds in order to capture market risk/return
efficiencies, the DFA Core funds are total market funds that are modestly weighted toward riskier small and value stocks based on DFA’s
academic research and expertise. Therefore, the equity component of this portfolio is weighted away from the allocation of the total market
and toward riskier small and value stocks which have historically outperformed the market.
The equity risk in the portfolio is balanced with Vanguard bond index funds. AWM does not chase returns in the bond market. AWM adheres to
the philosophy that bonds are the safe anchor in the portfolio.
The total portfolio asset class mix is developed through an adherence to the principles of diversification and portfolio optimization defined by
Modern Portfolio Theory - which states an optimal allocation exists for a given level of risk. Portfolio allocations are updated annually through an
extensive process of research and back testing on what allocations have given the best return over the longest period of time.
This document was prepared by Mid Atlantic Trust Company and is solely for use by current and prospective clients and their investment consultants. The descriptions and
performance information contained herein is believed to be accurate but in no way does MATC guarantee the accuracy, completeness, or timeliness of this information nor has it been
independently verified by MATC. If you have questions about performance, please contact your investment manager. Past performance is not necessarily indicative of future results.
This summary does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be relied upon in connection with any offer or sale of securities. Use of
this document represents that you have read and agreed to the Terms and Conditions attached to this document or available at www.midatlantictrust.net. Morningstar data: Copyright
2012, Morningstar Inc. all rights reserved. Brokerage services provided by Mid Atlantic Capital Corporation, a registered broker dealer. Member FINRA, SIPC.
AWM - DFA and Vanguard Based Moderate Risk Portfolio
Data Updated as of 1/31/2015
Performance Overview
Trailing Returns
3 Mo.
0.42%
0.04%
-0.68%
Model
Benchmark 1
Benchmark 2
Trailing Returns (Annualized)
YTD
-0.21%
-0.21%
-0.75%
1 Yr.
6.89%
6.57%
5.65%
3 Yr.
9.81%
8.74%
8.68%
5 Yr.
9.70%
9.22%
8.97%
Annual Returns
Since
Incep
11.21%
10 Yr.
6.48%
6.62%
2014
5.01%
5.35%
4.89%
2013
17.82%
14.46%
14.31%
Up Market Capture Ratio1
Down Market Capture Ratio1
Batting Average1
102.52%
87.48%
.528
2012
11.46%
11.24%
12.04%
2011
-1.23%
0.28%
0.59%
2010
14.74%
13.95%
12.33%
1
Calculations are based on the trailing 3 years compared to DJ Moderate TR USD
Performance data shown represents past performance. Past performance is no guarantee of future results. Investors cannot invest directly in an index. Indexes have no fees. Indexes have certain
limitations. Current performance may be higher or lower than the performance quoted. Not FDIC Insured * May Lose Value * Not Bank Guaranteed
Hypothetical Growth of $10,000 Initial Investment
Risk Overview
3 Year
Standard
Deviation
Sharpe Ratio
Sortino Ratio
Information Ratio2
Alpha
(Annualized)2
Beta2
R-Squared2
Tracking Error2
5 Year
10 Year
6.08%
9.24%
1.57
2.77
0.68
1.05
1.72
0.23
1.53%
(0.17%)
0.94
93.67
1.60%
1.08
95.43
2.08%
2
Calculations are based on model compared to DJ Moderate TR USD
Asset Allocation
Top 10 Holdings
DFA U.S. Core Equity I Portfolio Institutional Class
38.00%
Vanguard Total Bond Market Index Fund Investor Shares
32.00%
DFA International Core Equity Portfolio Institutional Class
10.00%
Vanguard Inflation-Protected Securities Fund Investor Shares
5.00%
Vanguard Short-Term Bond Index Fund Investor Shares
5.00%
DFA Emerging Markets Core Equity Portfolio Institutional Class
4.00%
DFA Five-Year Global Fixed Income Portfolio Institutional Class
3.00%
Vanguard REIT Index Fund Investor Shares
3.00%
This document was prepared by Mid Atlantic Trust Company and is solely for use by current and prospective clients and their investment consultants. The descriptions and
performance information contained herein is believed to be accurate but in no way does MATC guarantee the accuracy, completeness, or timeliness of this information nor has it been
independently verified by MATC. If you have questions about performance, please contact your investment manager. Past performance is not necessarily indicative of future results.
This summary does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be relied upon in connection with any offer or sale of securities. Use of
this document represents that you have read and agreed to the Terms and Conditions attached to this document or available at www.midatlantictrust.net. Morningstar data: Copyright
2012, Morningstar Inc. all rights reserved. Brokerage services provided by Mid Atlantic Capital Corporation, a registered broker dealer. Member FINRA, SIPC.
AWM - DFA and Vanguard Based Moderate Risk Portfolio
Data Updated as of 1/31/2015
Model Overview
Fees & Expenses
Inception Date
Jul-2009 Management Fee
0.100%
Total Net Assets
$2.3 mil ModelxChange Fee
0.035%
Turnover (Within Underlying Funds)
Manager Name
Manager Tenure
33% Underlying Funds Expense
0.236%
Michael C. Angelucci, MBA, CFP
5.6 yrs Total Expense
0.371%
Principal Risks
The moderate weighting of the equity portfolio towards small and value stocks may result in periods of time where the equity allocation in the
portfolio underperforms the total stock market.
Historically, these periods of underperformance have been outweighed by the larger outperformance of small and value stocks over time.
The secondary risk to this portfolio is interest rate risk. As rates rise the value of the bond funds will go down. The bond funds are weighted
towards shorter maturities to minimize the effect of a rise in interest rates.
Since the weighting towards small and value is modest, the deviation away from the total equity market should be modest as well.
Performance Disclosures
Past performance is not a guarantee of future performance. As well, current and future performance data will differ from individual experience
depending individuals timing of purchases and the reinvestment of dividends and capital gain distributions.
Mid Atlantic Disclosures
Neither Mid Atlantic Trust Company, Mid Atlantic Capital Corporation, or any of their third-party licensors (collectively, "Data Providers") shall have any liability for the accuracy or
completeness of the information or software furnished through this document, or for delays, interruptions or omissions therein nor for any lost profits, indirect, special or consequential
damages. Data Providers have exclusive proprietary rights in any information and software received. It is not permitted for anyone to use the information provided through this service for
any unlawful or unauthorized purpose. You are not authorized or permitted to furnish such information to any person or firm for reuse or retransmission without prior written approval of
the source of such information. Access to this service is subject to termination in the event that any agreement between Mid Atlantic Trust Company or Mid Atlantic Capital Corporation
and a provider of information distributed through this service is terminated in accordance with its terms.
Neither Mid Atlantic Trust Company, Mid Atlantic Capital Corporation, nor Mid Atlantic Financial Management Inc., has undertaken to provide advice with respect to the value of securities
or as to the advisability of investing in, purchasing or selling securities, unless such engagement is pursuant to a written advisory agreement.
This document was prepared by Mid Atlantic Trust Company and is solely for use by current and prospective clients and their investment consultants. The descriptions and
performance information contained herein is believed to be accurate but in no way does MATC guarantee the accuracy, completeness, or timeliness of this information nor has it been
independently verified by MATC. If you have questions about performance, please contact your investment manager. Past performance is not necessarily indicative of future results.
This summary does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be relied upon in connection with any offer or sale of securities. Use of
this document represents that you have read and agreed to the Terms and Conditions attached to this document or available at www.midatlantictrust.net. Morningstar data: Copyright
2012, Morningstar Inc. all rights reserved. Brokerage services provided by Mid Atlantic Capital Corporation, a registered broker dealer. Member FINRA, SIPC.