The DIAS Conservative Income Portfolio


Posted in: Economics, General, Retirement Planning, Stock Market, Thought of the Week

This is going to be the most important Thought of the Week written this year. Even if you choose to not read any other Thoughts of the Week, please make this the one to read. This article will cover everything you need to know about Conservative Income (CI) portfolio, which many of you are invested in.

The goal of CI is to produce 5%+ annual income by investing in low risk assets while also preserving the capital base. The portfolio is made up of 56% equities, 28% fixed income, and 16% cash & equivalents. CI is not correlated to the S&P 500. In fact, the composition of CI is much different than the S&P500, both in sector weight and individual securities. This is because CI’s goal is to preserve capital and generate income.

CI requires an investor to be patient and think with a long-term investment mindset. In the short term, cyclicality will cause movement in the portfolio due to the 56% equity component of CI. Please remember that our investment committee continually adjusts the composition of CI in anticipation of market changes and these changes often take time to play out. Read this week’s Thought of the Week to learn more about the composition CI and where our investment committee believes it will go in the future.

Click Here for the Weekly Thought

As an Investment Advisory Representative working in conjunction with Global Financial Private Capital (GFPC) we are provided weekly thoughts on what is happening in the economy and the market.  Written by our investment committee at GFPC we find these thoughts to be informative and interesting.