The Fundamental Asset Allocation model managed by Prism Capital uses a fundamental approach to investing and focuses on long-term capital appreciation as well as risk management. The model is diversified globally among many different asset classes and is designed to have minimal volatility in order to enhance the model’s long-term performance.
The top holding in the model is PowerShares S&P 500 BuyWrite Portfolio (PBP), a fund that attempts to replicate the performance of the CBOE S&P 500 BuyWrite index. This index is the benchmark index for a hypothetical covered call strategy on the S&P 500. Out-of-the-money call options are used for index calculation, while the fund invests about 80 percent if its assets in stocks found on the S&P 500 index and sells call options on the index to generate revenue. On November 24th the fund was trading at a premium to NAV.
Another top holding in the model is iShares Barclays Intermediate Credit Bond Fund (CIU). CIU attempts to mirror the performance of the Barclays Capital U.S. Intermediate Credit Bond index by investing at least 90 percent of its assets in securities of the index. On November 24th the fund was trading at a discount to NAV.
The Fundamental Asset Allocation model also has Vanguard European ETF (VGK) as one of its top holdings. VGK attempts to replicate the performance of the MSCI Europe Index. In order to do so, VGK has the majority of its assets invested in the stocks represented by the index. The MSCI Europe Index is comprised of the stocks of more than 450 companies within 16 European countries. On November 24th the fund was trading at a premium to NAV.
