Archive for December, 2018

2018 December Detailed YTD Performance

Monday, December 31st, 2018
 YTD 12/31/18
Stable Value Option           2.9%
BlackRock Short Term Investment           2.0%
Cash/CDs           1.4%
Invesco Managed Account           3.0%
Benchmark
BofA Merrill Lynch 91-Day T-Bill           1.9%
Fixed Income Fund          -0.3%
Dodge & Cox Core Fund  MF          -0.3%
Prudential Core Plus  CIT          -0.2%
Western Asset Core  MF          -0.7%
SSgA US Fixed Income Index Fund  CIT          -0.1%
Benchmark
Barclays Universal Bond          -0.3%
Diversified Inflation / Real Return Fund          -5.3%
Vanguard Inflation-Protected Securities Index  MF          -1.4%
Vanguard Short TIPS  MF           0.5%
SSgA Inflation-Protected Securities  CIT          -1.4%
SSgA Global REIT  CIT          -4.3%
Frontier Magellan Infrastructure  MF          -6.6%
SSgA Natural Resources  CIT          -9.1%
SSgA Commodities  CIT        -11.8%
Benchmark
Barclays US TIPS 0-5 Year           0.6%
Large Cap Core Stock Fund          -3.6%
Macquarie Large Cap Value  CIT          -2.7%
T. Rowe Price Large Cap Growth  MF          -0.9%
Columbia Large Cap Contrarian  CIT          -8.4%
London Company Large Cap  SA          -5.7%
SSgA S&P 500 Index  CIT          -4.5%
Benchmark
S&P 500 Index         -4.4%
Small / Mid Cap Core Stock Fund         -8.2%
Monarch SMID Value  CIT       -21.5%
William Blair SMID Growth  MF         -2.1%
Atlanta High Quality SMID Cap  MF         -5.3%
Brown Small Co. Instl.  MF         -0.5%
Brandes Small Cap Value  SA       -10.3%
Wellington Mid Cap Core  CIT         -7.5%
SSgA Russell 2500 Index Fund  CIT         -9.4%
Benchmark
Russell 2500 Index        -10.0%
International Stock Fund        -11.8%
MFS International Value  MF          -8.9%
Artisan Non-US Growth  CIT        -10.9%
Lazard Global Managed Volatility  CIT          -6.4%
Aberdeen Emerging Markets Equity  CIT        -13.5%
Brandes Intl Small Cap  MF        -19.9%
SSgA Global All Cap Equity ex-US Index  CIT        -14.5%
Benchmark
MSCI ACWI ex US IMI net         -14.8%
Income Fund            0.8%
Benchmark
Income Composite Index           -0.5%
Conservative Fund           -2.1%
Benchmark
Conservative Composite Index           -2.6%
Moderate Fund           -4.8%
Benchmark           -5.5%
Moderate Composite Index
Aggressive Fund           -6.4%
Benchmark
Aggressive Composite Index          -7.0%

 

Targeting Risk Tolerance through the DAP Target Risk Funds

Monday, December 10th, 2018

The Target Risk  Fund facts are reported under the “Resources & Planning” tab on this website.  The picture below shows the information that is available to you and updated each month by the 20th business day following month end.  Please pay close attention to the long-term performance and the annual performance.  For example, in the past 9 years, the Moderate Fund had only 1 year with negative performance (-2.3% in 2011).


Recent Market Volatility (as of November 26, 2018)

Monday, December 10th, 2018

Addressing market volatility, a message from Mercer, the DAP Investment Advisor (as of November 26, 2018)

Since hitting a recent peak in September, global equity markets have experienced a decline of around 10%.  Although the recent correction has created anxiety for investors, its magnitude is not particularly alarming from a historical perspective. In fact, stocks experience a market correction (defined as a loss of 10% or more) roughly every 24 months. The most recent decline is of similar magnitude to the corrections experienced in January/February of this year as well as those in 2016 and 2015. Since the recovery from the 2008 financial crisis began, there have been six market corrections in global equity markets.

There can be simultaneous catalysts for a market sell-off making it difficult to identify a singe cause. In the case of the current sell-off, the most likely culprits are 1) rising interest rates, 2) trade tensions 3) potentially slowing China growth, and 4) technical selling. Although these are legitimate concerns, there is not sufficient evidence that any single factor was a cause for the sell-off, nor can the degree of each factor’s magnitude be determined or its lasting effects known at this time. It remains that just as likely a factor is simply the culmination of investor fears that the longest running bull market in history is overheated and due for a correction and is the root cause of selling.

However, we do not believe the recent market action is a sign of a coming bear market. Bear markets are typically preceded by recessions. Further to this point, we do not see a recession on the horizon as several economic fundamentals are still in place to support a continued bull market. In general, although market valuations are elevated, fundamentals are favorable with economic and earnings growth remaining.

Nonetheless, we believe that given the increased level of uncertainty surrounding the aforementioned economic and geopolitical factors, one should expect higher volatility over the intermediate-term and we should be prepared for the potential sharp drops from time to time. Additionally, expensive valuations suggest lower prospective returns. Overall, we continue to believe that investors should avoid overreacting to short-term market movements and maintain a long-term time horizon. Additionally, we think the best approach to navigating turbulent markets is through diversification.

Market Closed December 5th – Honoring President George H. W. Bush

Tuesday, December 4th, 2018

Day of mourning
Financial markets will be closed December 5 – In conjunction with the national day of mourning to honor former President George H. W. Bush the financial markets will be closed December 5. Our offices will remain open. If you submit a transaction after market close December 4 or on December 5, we will keep it on file and process it when the markets reopen on December 6.

2018 November Detailed YTD Performance

Sunday, December 2nd, 2018
 YTD 11/30/18
Stable Value Option           2.6%
BlackRock Short Term Investment           1.8%
Cash/CDs           1.2%
Invesco Managed Account           2.7%
Benchmark
BofA Merrill Lynch 91-Day T-Bill           1.7%
Fixed Income Fund          -1.7%
Dodge & Cox Core Fund  MF          -1.3%
Prudential Core Plus  CIT          -1.7%
Western Asset Core  MF          -2.2%
SSgA US Fixed Income Index Fund  CIT          -1.9%
Benchmark
Barclays Universal Bond          -1.8%
Diversified Inflation / Real Return Fund          -2.5%
Vanguard Inflation-Protected Securities Index  MF          -1.9%
Vanguard Short TIPS  MF           0.4%
SSgA Inflation-Protected Securities  CIT          -1.9%
SSgA Global REIT  CIT           1.1%
Frontier Magellan Infrastructure  MF          -3.8%
SSgA Natural Resources  CIT          -5.8%
SSgA Commodities  CIT          -6.5%
Benchmark
Barclays US TIPS 0-5 Year           0.4%
Large Cap Core Stock Fund           5.2%
Macquarie Large Cap Value  CIT           5.3%
T. Rowe Price Large Cap Growth  MF           8.0%
Columbia Large Cap Contrarian  CIT           1.3%
London Company Large Cap  SA           3.0%
SSgA S&P 500 Index  CIT           4.9%
Benchmark
S&P 500 Index          5.1%
Small / Mid Cap Core Stock Fund          2.6%
Monarch SMID Value  CIT       -12.0%
William Blair SMID Growth  MF        11.1%
Atlanta High Quality SMID Cap  MF           5.5%
Brown Small Co. Instl.  MF         10.7%
Brandes Small Cap Value  SA         -2.8%
Wellington Mid Cap Core  CIT          3.9%
SSgA Russell 2500 Index Fund  CIT          1.2%
Benchmark
Russell 2500 Index          1.1%
International Stock Fund          -7.4%
MFS International Value  MF          -4.5%
Artisan Non-US Growth  CIT          -6.0%
Lazard Global Managed Volatility  CIT          -0.5%
Aberdeen Emerging Markets Equity  CIT        -12.2%
Brandes Intl Small Cap  MF        -14.9%
SSgA Global All Cap Equity ex-US Index  CIT        -10.5%
Benchmark
MSCI ACWI ex US IMI net         -10.6%
Income Fund            2.1%
Benchmark
Income Composite Index            0.8%
Conservative Fund            0.5%
Benchmark
Conservative Composite Index           -0.4%
Moderate Fund           -1.0%
Benchmark           -1.9%
Moderate Composite Index
Aggressive Fund           -1.5%
Benchmark
Aggressive Composite Index          -2.3%