Asset Allocation Tool

VFS Asset Allocation Tool

This tool provides the ability to try different asset allocation strategies, and optionally include sector momentum factors.

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Assets to Invest (less cash reserve)
Unallocatable US Stock Investments
Weighting Adjustment:
Use Forecast For Next Month
Asset Class
Momentum Indicator
Base Allocation
Momentum Adjusted Allocation
Final Adjusted Allocation
Investment Balance
{{assetClass.ClassName}} Negative Momentum No Momentum Coorelation Positive Momentum %  {{assetClass.MarketAdjustedAssetAllocation | number:1}}%   {{assetClass.AdjustedAssetAllocation | number:1}}%  
{{assetClass.BaseInvestment | currency:"$":0}}
Excess Cash Balance   help {{assetClassTool.AssetClassTotals.ExcessCashAllocation | number:1}}%   {{assetClassTool.AssetClassTotals.ExcessCashAllocation | number:1}}%   {{assetClassTool.AssetClassTotals.ExcessCash | currency:"$":0}}
Totals: {{assetClassTool.AssetClassTotals.BaseAllocationTotal | number:0}}   % {{assetClassTool.AssetClassTotals.MarketAdjustedAllocationTotal | number:0}}%   {{assetClassTool.AssetClassTotals.AdjustedAllocationTotal | number:0}}%   {{assetClassTool.AssetClassTotals.AdjustedInvestmentTotal | currency:"$":0}}
ASSET ALLOCATION MUST = 100%


Starting Sector Allocation : {{assetClassTool.SectorTotals.AssetAmount | currency:"$":0}}
Total Allocatable: {{(assetClassTool.SectorTotals.AssetAmount - assetClassTool.SectorTotals.BaseUnallocated) | currency:"$":0}}


Stock Sector
Momentum Indicator
Base Allocation
Momentum Adjusted Allocation
Final Adjusted Allocation
Investment Balance
{{sector.ClassName}} Negative Momentum No Momentum Coorelation Positive Momentum %  {{sector.AllocAssetAllocationPct | number:1}}%    {{sector.MarketAdjustedAssetAllocation | number:1}}%   {{sector.AdjustedAssetAllocation | number:1}}%  
{{sector.BaseInvestment | currency:"$":0}}
Unallocated   {{((assetClassTool.SectorTotals.BaseUnallocated / assetClassTool.SectorTotals.AssetAmount) * 100) | number:1}}%   {{assetClassTool.SectorTotals.UnallocatedTotalPct | number:1}}%   {{assetClassTool.SectorTotals.UnallocatedTotal | currency:"$":0}}
Totals: {{assetClassTool.SectorTotals.BaseAllocationTotalPct | number:0}}   % {{(assetClassTool.SectorTotals.MarketAdjustedAllocationTotalPct + assetClassTool.SectorTotals.UnallocatedTotalPct) | number:0}}%   {{(assetClassTool.SectorTotals.AdjustedAllocationTotalPct + assetClassTool.SectorTotals.UnallocatedTotalPct) | number:0}}%   {{(assetClassTool.SectorTotals.UnallocatedTotal + assetClassTool.SectorTotals.AdjustedInvestmentTotal) | currency:"$":0}}
SECTOR ALLOCATION MUST EQUAL 100%

Indicates rating changed this period
The amount of invest-able assets to allocate.

Cash Reserves When determining cash reserves, many financial analysts recommend holding an emergency cash reserve, often as much as 50% of your annual expenses. The theory being that if the economy turns down, investments will lose money at the same time of increased loss of job security.

When a large percentage of asset categories are negative, the VFS asset allocation model adds the excess cash to your cash balance.

Asset Class - These are the asset classes tracked by the tool.

Momentum Indicator - Certain asset classes historically outperformed or underperformed based on historical momentum. VFS tracks this momentum at http://pugetinvestor.com/sectors.aspx. At Puget Investor you can view the current momentum indicator, as well as see historical samples of returns when shifting allocation based on momentum.

indicates positive momentum - based on historical indicators this asset class is predicted to outperform.
indicates negative momentum - based on historical indicators this asset class is predicted to underperform.

Base Allocation - The standard asset allocation that is right for you. There are a number of resources on the internet for helping determine your proper allocation, and determining your asset allocation should be an important first step. The allocations defaulted on this page are not meant to be a recommendation, these are just example values.

Adjusted Allocation - This is your base allocation adjusted by the momentum weighting amount.

Investment Balance - The amount to invest multiplied by the adjusted allocation.