Feb 29
AA-Portfolio Performance Update – 2/28/2008
Photograph: Oregon Coast
While the AA-Mosaic Portfolio continues to maintain a commanding lead over its VTSMX benchmark, the percentages are not all that meaningful as they swing wildly with any volatility in the market. At the close of 2/28/2008, the IRR for the portfolio showed a slight gain of 0.9% while the VTSMX benchmark was lagging with a negative -19.4%. The VFINX or S&P 500 index is negative 19.3%. Performing a bit higher is the total international index (VGTSX) at negative 6.8%.
It is encouraging to see a diversified portfolio maintain this lead, knowing full well the gap will likely close as the different asset classes revert toward their mean value. Nevertheless, we do expect the AA-Mosaic Portfolio to perform better than the VTSMX without taking on too much additional risk.