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Capital Preservation

Portfolio Objective: 

The portfolio is designed to deliver a reasonable level of cash flow yield and moderate liquidity while placing an emphasis on capital preservation. Growth is a secondary objective.

Portfolio Overview: 

This portfolio attempts to achieve its objective by allocating about 60% of the portfolio to a well diversified mix of treasury, investment grade corporate, government agency, TIP, and high yield bonds with a short to intermediate duration. In addition there are moderate allocations to high quality dividend paying equities (both domestic and foreign), commodities, and real estate. From time to time depending on market conditions Traphagen may choose to hedge a portion of the equity allocation.

Portfolio Highlights

Cash Flow Yield: 3.10%
Capital preservation but has net market risk
Approximate Duration: 5.5 years
Targeted Risk (SD): 6.75%
Targeted BETA: 0.38


Mutual Funds: 25%
ETFs: 75%

Current Risk Summary

Overall Risk: Low/Moderate
Credit Risk: Low/Moderate
Duration Risk: Low/Moderate
Market Risk: Moderate