The AAII Model Mutual Fund Portfolio was published in the November 2011 Journal (page 34) where the annual performance since 2003 can be found. As the scan shows all the funds have positive 5y Sharpe ratios and are in the Balanced portfolio. That portfolio has a 5yr APR of 8.53% with a Sharpe ratio of 0.70. The AAII Portfolio with market weighted asset allocation has about the same 5yr APR but with very a different asset allocation. That portfolio invested over 90% of it in the Fidelity Capital & Income fund FAGIX. Interesting.
The AAII Model Mutual Fund Portfolio has better 5yr performance than almost all the 401k plans scanned this year. It may be of interest to 401k Plan Investment Committees. Of course if you add a strong company stock to the portfolio things get even better. That is what I did for my in-retirement portfolio which has a 5yr APR of 12.91% with Sharpe ratio of 2.25 for the same 5yr period.
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