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.

[Nick Radge]

Here’s another All Weather strategy for the ASX. Doesn’t get much more robust or easier.

40% Gold
30% VTS (All US Stocks)
30% VGS (All Global Stocks)

Rebelance each year. Nothing else.

CAGR 12.4%
maxDD -12.6%
Vola 8.8%
Sharpe 1.15

[RobertMontgomery]

Has anyone else trading the “US All Weather Portfolio” using Interactive Brokers solved the riddle for gaining permission to trade “Complex or Leveraged Exchange Traded Products Trading Permissions”?  I have called IB support and they are not at liberty to disclose the experience requirement needed to trade funds like IBIT that are considered “Complex or Leveraged …”.  I have updated my trading experience profile settings, but remain blocked from trading this fund.  For a work around I bought it in my Fidelity account without any drama, so just curious if the IB requirements are known.

[GlenPeake]

@Robert

From memory, for me I think I followed a link after trying to place an order on one of the ETF’s e.g. $IBIT.

i.e.
I tried to place a (manual) BUY order on e.g. $IBIT, then a ‘permission’ dialog box popped up saying “you need trading permissions to trade ETFs, from there, there was a link to modify trading permissions….. this was a ‘systematic’ request and permission was granted immediately.

Hope that helps….

[Author]

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