Aronson Family Portfolio Reviewed and Compared
10/08/2010 0 comments
Ted Aronson and his AJO Partners manage about $25 billion of institutional assets. Aronson puts his family's taxable money in this well-diversified portfolio of no-load index funds.
| Fund | Weight | Ticker | ETF |
| US Equities | 40% | VFINX, VEXMX, VISGX, VTSMX, VISXX | VTI, TMW, VBK, VBR |
| International Equity | 20% | VPACX, VEURX | VEA |
| Emerging Markets | 10% | VEIEX | EEM |
| US Bonds | 30% | VIPSX, VUSTX, VWEHX | TIP, LQD, HYG |
This lazy portfolio will be compared with the same funds with a balanced (i.e. all equity asset classes equally weighted) buy and hold with monthly rebalancing and the ability to rotate styles within the asset classes. This will look at what difference alternative fund balances contribute to the results. We will look at a Six asset class portfolio with Strategic Asset Allocation that will shed light on the benefits of extra asset classes.
Then we will compare the impact of tactical asset allocation on the Aronson funds and also a six asset class SIB to examine the returns delivered by a TAA strategy applied to Aronson and broader funds.
| Annual returns | 1 year | 3 years | 5 yea |
| Aronson Original | 9 | -1 | 3 |
| Aronson SAA | 12 | 1 | 6 |
| Aronson TAA | 6 | 4 | 13 |
| Six SIB TAA | 14 | 7 | 14 |
The original lazy portfolio performs in a satisfactory manner. The 1 year returns top the table but that is coming from the worst three and five year results. The balanced buy and hold gives better long term results and six asset class SIB has even better results. This is expected as diversification normally beats more funds in fewer asset classes.
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