Kevin Shine’s Asset Allocation model looks to diversify holdings across many asset classes. The model holds REITs, ETFs, stocks and more. It is built for long-term investing.
The top holding in the model is iShares Barclays MBS Bond Fund (MBB), a fund that attempts to mirror the performance of the Barclays Capital U.S. MBS index, which tracks certain mortgage backed securities. In order to replicate the index, MBB has 90 percent of its assets in the index’s underlying securities. The remaining 10 percent is invested in other bonds or derivatives. On September 27th the fund was trading at a discount to NAV.
The next largest holding in the model is PowerShares DB Precious Metals Fund (DBP), a fund seeking to mirror the performance of the Deutsche Bank Liquid Commodity Index – Optimum Yield Precious Metals Excess Return. The index consists of futures contracts for gold and silver, as does the fund. As of September 27th, the fund had 93 percent of its assets in gold futures and was trading at premium to NAV.
Another large holding in the Asset Allocation model is PowerShares DB Agriculture Fund (DBA). DBA’s goal is to mimic the performance of the Deutsche Bank Liquid Commodity Index – Optimum Yield Agriculture Excess Return. DBA has the majority of its assets in coffee and cocoa futures, as of September 27th, 2010. On the same date, the fund was trading at a premium to NAV.
Finally, let’s take a look at the model’s fourth largest holding, iShares Dow Jones US Consumer Goods Sector Index Fund (IYK). IYK seeks to mirror the performance of the Dow Jones U.S. Consumer Goods Index by investing at least 90 percent of its assets in securities that are on the Consumer Goods Index. On September 27th, the largest holding in IYK was Procter & Gamble Co (NYSE: PG) and the fund was trading at a discount to NAV.
