All Weather Discussion

[Nick Radge]

FYI, here’s a stats dump of the Combined US and ASX All Weather strategy which will soon be offered as a managed product.
My SMSF is 100% allocated to this portfolio – 50% to ASX and 50% to US.

[KateMoloney]

Great stats. Especially handy for those fearful of a repeat of the 2008 market.

I’m currently looking @ using Stake in a SMSF environment to trade those portfolios.

$3 per trade and $990 per year to manage the fund.

Having a convo with them tomorrow to find out all the downsides.

Been using Hostplus in the past for monthly trading, but its way too restrictive.

[Nick Radge]

Yes, some of the SMSF companies make it quite difficult. A friend uses AusSuper, and the amount of ETFs which they have removed from their offering is a concern. 

Just check if they pay interest on cash, else just use $AAA.au for excess funds

[KateMoloney]

Thanks Nick.
The amount of regulation is insane. Trying so much to stop people losing money they also stop them making money.

[KateMoloney]

I’ve noticed IB have made their ASX trades much more competitive.

https://www.interactivebrokers.com.au/en/pricing/commissions-stocks-asia-pacific.php?re=apac

As I understand it, it is 0.088% per trade or a minimum of $5.50 per trade.

Only downside is they are not CHESS sponsored trades.

[RichardKoziel]

Nice going Nick the ROR to MDD is impressive.

My I assume SMSF = Self Managed Super Fund?
Thanks

[Nick Radge]

Kate,
Get this new fee they have just bought in – about $1100 per person. It’s a levy that is supposed to cover any advisors that have an existing complaint against them that are unable to pay it. I’m unsure why the current indemnity insurance doesn’t cover that stuff. All in all, another fee to advisors mean they pass it onto clients which makes advice less accessible to those that actually need it.

Rick, 
Yes, SMSF is Self Managed Superfund which is our term for retirement accounts.

[KateMoloney]

Nick, Once I interviewed a financial planner who encouraged me to lodge a complaint if she lost me money because “my insurance will cover your losses”

I did not engage her with that attitude. Where is client responsibility? And why do the other people have to pay for advisors with complaints?!

[RobertKinnell]

I use HEFFRON as my SMSF establisher/accountant, and have accounts with IB for US shares and self-wealth for Oz shares.

I looked at Stake but chose HEFFRON + IB/SW over them. Can’t remember why.

[Nick Radge]

So Owen Rask has launched a series of All-Weather styled strategies on the InvestSmart platform. The most aggressive they’ve called Jupiter, which is essentially an 90/10 portfolio. I’m not sure how the allocate or rebalance, but here’s the code for it.  Note that they’re using FEMX which only listed in 2019. 

Import:
    DataSource:    Norgate
    
    IncludeList:     AAA.AU>AAA, FEMX.AU>FEMX, IAF.AU>IAF, IHVV.AU>IHVV, IVV.AU>IVV, VAS.AU>VAS
    
    IncludeList:    %AUCRT, STW.au, AOA, VDGR.au
    StartDate:    1/1/2008
    EndDate:    Latest
    SaveAs:    All_Combo.rtd

Settings:
    DataFile:    All_Combo.rtd

    StartDate:    1/1/2019
    EndDate:    Latest
    BarSize:    Daily
    UseAvailableBars:    False
    AccountSize:    100000
    RiskFreeRateSym:    %AUCRT 
    CashIntPct:        -0.5 
    
    
Benchmark: ASX200 Benchmark
    Side:     Long
    Allocation:     S.Equity
    ExitRule:     Dividend > 0
    EntrySetup:     Symbol== $STW.au

Parameters:
  
    AllocAAA:    0.03
    AllocFEMX:    0.10
    AllocIAF:    0.05
    AllocIHVV:    0.10
    AllocIVV:    0.30
    AllocVAS:    0.40
    
Data:
    Alloc:    item(“alloc{?}”, ?symbol)
    
    
Template: Common
    Side:    Long    
    Commission:    9.50//Max(6.00, 0.0008 * FillValue)
    QtyType:    Value
    MaxExposure:    100
        
    
Strategy:    Rask_Jupiter
    Using:    Common
    ExitRule:    EndofMonth 
    EntrySetup:    EndofMonth 
    Quantity:     S.Alloc * Alloc

[JulianCohen]

That one seems to have much bigger drawdowns than the one we are using

[Nick Radge]

Yep. It would certainly suffer in a 2008 scenario.

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