Monday, November 26, 2007

Morninstar Analysis of My New Proposed Portfolio and Some Modifications to It

So here is the Morningstar Instant X-Ray analysis of the portfolios I previously discussed.


The Portfolio Paul Merriman recommends (with reservations) in his blog:
20% American Mutual AMRMX
20% Growth Fund of America AGTHX
20% EuroPacific Growth AEPGX
30% Small Cap World SMCWX
10% New World NEWFX
My Current Portfolio (as withheld, not as currently allocated from growth):
10% AMCAP Fund AMCPX
15% American Balanced ABALX
15% American Mutual AMRMX
15% Capitol Income Builder CAIBX
15% Income Fund of America AMECX
15% Investment Company of America AIVSX
15% Washington Mutual Investors AWSHX
The Portfolio that I settled on:
15% American Mutual AMRMX
10% Growth Fund of America AGTHX
15% Capitol Income Builder CAIBX
20% EuroPacific Growth AEPGX
30% Small Cap World SMCWX
10% New World NEWFX
So I "analyzed" each of these with Morningstars Instant X-Ray tool, if you even want to call what I did analyzing, and here are the results:

Paul's Recommendations with Reservations:
41% Domestic / 47% Foreign
66% Large / 34% Small-Mid
40% Growth / 27% Value

My Current Portfolio:
65% Domestic / 12% Foreign
91% Large / 9% Mid
26% Growth / 37% Value

My Hybrid Portfolio:
33% Domestic / 50% Foreign
64% Large / 35% Small-Mid
36% Growth / 31% Value

Wow, I didn't expect Capitol Income Builder to be such a swayer towards international. It made me want to do CIB by itself:
27% Domestic / 38.5% Foreign (35% Cash&Bonds)
88% Large / 12% Small(1%)-Mid(11%)
12% Growth / 56% Value

As a result, I think I will change my allocation to this:
15% American Mutual AMRMX
20% Growth Fund of America AGTHX
10% Capitol Income Builder CAIBX
10% EuroPacific Growth AEPGX
35% Small Cap World SMCWX
10% New World NEWFX
The analysis splits out like this:
40% Domestic / 43% Foreign
61% Large / 39% Small-Mid
41% Growth / 37% Value

This will change the way I redistribute my current portfolio.
10% AMCAP Fund ==> New World(10/10)
15% American Balanced
==> EuroPacific(10/10)
==> Small Cap (5/35)
15% American Mutual - KEEP (15/40)
15% Capitol Income Builder - KEEP (10/40)
==> Growth Fund of America (5/20)
15% Income Fund of America
==> Growth Fund of America (15/20)
15% Investment Company of America ==> Small Cap (15/35)
15% Washington Mutual Investors ==> Small Cap (15/35)

This might just work. Now if I can only remember to fill out the paperwork.

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2 Comments:

Anonymous hank said...

I've been thinking of signing up for Morningstar, but haven't found a way to justify the costs yet - but it sounds like it's providing you some good insight, no? Looks like you've made some good decisions though - thanks for the comment back in my neck of the woods... :)

6:00 PM  
Blogger Swamproot said...

All of these results were obtained through MorningStar's Instant X-Ray tool, which is free. I don't know if I could justify the costs at this point in my investing career either. :-)

6:26 PM  

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