Member News 2013
Model Portfolio Combines Mutual Funds, ETFs
AAII members trying to decide whether to invest in mutual funds or exchange-traded fundscan now look to the Model Fund Portfolio for guidance. This portfolio has been revised to take advantage of the strengths of both, by combining mutual funds and ETFs.
As AAII Founder and Chairman James Cloonan explained, ETFs offer the advantages of generally lower expenses, the ability to both get updated pricing information and buy and sell shares any time the market is open and the ability to tax-manage them according to individual requirements. What ETFs cannot do, however, is exploit the significant inefficiencies that currently exist.
Actively managed mutual funds, which are not tied to an index, can exploit these inefficiencies. Mutual funds add value when the investment approach used provides a post-expense return advantage or reduces risk for the portfolio.
|Assets||Liabilities and Fund Balance|
|Current Assets||$728,406||Accounts Payable||$285,530|
|Investments||6,583,842||Deferred Membership Revenue||4,241,933|
|Net Fixed Assets||10,508||Deferred Life Membership Revenue||12,768,061|
|Total Assets||$7,322,756||Total Liabilities and Fund Balance||$7,322,756|
|Note: Deferred membership revenue is recognized periodically as income over the membership period. Deferred life membership is recognized periodically as income over a 25-year period. This accrual method of accounting reflects the Association’s long-term obligation to its members.|
AAII Investor Conference 2013:Keynote Speakers This Fall in Orlando
This November, AAII will be hosting our Investor Conference in Orlando, Florida, and we are pleased to announce that we’ve arranged for two well-respected and prominent investment professionals to provide their view of the markets to our members.