Alerus Retirement mobile app is now updated.
The first update delivers seamless integration between the mobile app and online website – and streamlines device integration. This enhancement is the first step to creating a better, more user-friendly experience for participants.
More updates coming in 2021.
In the coming months, you can expect to see additional enhancements to the Alerus Retirement mobile app, including a new look and design, transactional capability, options for facial recognition/biometric login, and a Spanish toggle feature.
High Yield Bond Merger
Brandywine Global Acquires Diamond Hill Capital Management’s High Yield-Focused Funds and Adds Portfolio Management Team
From the press release:
“PHILADELPHIA — (August 2, 2021) — Brandywine Global Investment Management, LLC (“Brandywine Global”), a specialist investment manager and subsidiary of Franklin Resources, Inc. (NYSE: BEN), announced today that it completed its acquisition of the business of Diamond Hill’s high yield-focused U.S. corporate credit mutual funds following a previously announced agreement with Diamond Hill Capital Management (“Diamond Hill”) effective July 30, 2021. The acquisition expands Brandywine Global’s fixed income offerings and broadens its expertise in bottom-up fundamental credit research.”
The Diamond Hill High Yield Fund I (DHHIX) is now the Brandywine Global High Yield Fund I (BGHIX). The 5 Star Morningstar ranked fund will retain its current portfolio managers and add in the expertise of Brandywine Global. McClain (one of the managers of DHHIX) said, “We’re thrilled to join Brandywine Global. We’re confident clients will benefit from the marriage of our bottom-up fundamental approach with Brandywine Global’s global, macro-driven insights.”
Retirement Collaborative LLC and the Voluntary Employee Benefit Committee will monitor this merger. We hope the new fund will continue the excellent performance that the managers at DHHIX were able to maintain.
2021 Q3 Tactical Model Report
This report contains the 2021 Q3 quarterly allocations for your retirement plan’s tactical models. As of this quarterly review, the U.S. equity trend indicator and the international trend indicator were both positive. The Balance of Strength Signal was also positive. Models will remain in their maximum High Risk Category exposure. Quarterly allocation updates to the models will occur in July. This last quarter, stocks and bonds were both positive. During the quarter, bond yields fell helping the price of bond funds and many large cap growth stocks. At this time, our U.S. bond indicator is negative but very close to moving positive, so the models will add some exposure to the U.S. bond index fund. In the High Risk category, we are adding some real estate exposure. For more information, please read the report below.
If you would like to review your account, please contact us.
2021 Q2 Tactical Model Report
This report contains the 2021 Q2 quarterly allocations for your retirement plan’s tactical models. As of this quarterly review, the U.S. equity trend indicator and the international trend indicator were both positive. The Balance of Strength Signal was also positive. Models will remain in their maximum High Risk Category exposure.
In 2020, both bonds and stocks ended the year higher. In the first quarter, stocks continued to do well; however, bonds suffered losses as bond yields rose. At this time, our U.S. bond indicator is negative, so the models will be reducing their exposure to the U.S. bond index fund and will shift that exposure to bond sectors that traditionally fair better during rising bond yields and positive stock market periods. The models will be updated to their new allocations in mid-April. Please read the report for more details.
If you would like to review your account, please contact us.
2021 Q1 Tactical Model Report
This report contains the 2021 Q1 quarterly allocations for your retirement plan’s tactical models. As of this quarterly review, the U.S. equity trend indicator and the international trend indicator were both positive. The Balance of Strength Signal was also positive. Models will remain in their maximum High Risk Category exposure. For the quarter, there are minor changes in the underlying holdings, but no change to the broad asset allocation. The models will be updated to their new allocations on January 14, 2021. Please read the full report for more information.
2020 Q4 Tactical Model Report
This report contains the 2020 Q4 quarterly allocations for your retirement plan’s tactical models. As of this quarterly review, the U.S. equity trend indicator and the international trend indicator were both positive. The Balance of Strength Signal was also positive. Models will remain in their maximum High Risk Category exposure with no changes to the model holdings. To read the full report, use the link below.
Alerus Money Market Rate
Notice from Alerus
Effective October 1st, 2020, the Alerus money market interest rate will reset from .23% to .04%, which equates to an APY of .04%. As of September 30th, the 1-year yield on Alerus money market is 1.30%.
Our Thoughts
With the Federal Reserve targeting extremely low short-term rates, rates of money markets, bank savings accounts, and bank checking accounts have dropped to minimal levels. Like bank accounts, the Alerus Money Market fund is FDIC insured.
If you were looking for an alternative investment that provides a higher yield without taking on a lot more risk, you may want to consider the Vanguard Short-Term Bond Index Fund Adm. Moving up from money market investments, I consider short-term bonds to be the second most conservative investment in the plan. Short-term bonds are less affected by interest rate movements than long term bonds, and this fund focuses on high quality bond issuers. Now it is not FDIC insured, but it is a consideration if you are looking for a higher yield than what money markets are now offering.
To learn more about the fund, you can access Vanguard’s website using the link below:
https://investor.vanguard.com/mutual-funds/profile/VBIRX
If you would like to discuss your account, Contact Us.
We moved...
As of September 1, 2020; our office will be located in the building next door. The new address is 2040 Linglestown Road, Suite 100, Harrisburg, PA 17110. When entering the building from the entrance facing Linglestown Road, we are the first suite on the left. Because of the pandemic, we mostly use the office for client meetings, which are by appointment only. You can schedule a meeting by visiting the Contact Us page.
Tactical Models Updating
The report below contains the 2020 Q3 quarterly allocations for your retirement plan’s tactical models. As of this quarterly review, the U.S. equity trend indicator and the international trend indicator were both positive. The Balance of Strength Signal was also positive. Models will move from roughly a third of their maximum High Risk Category exposure to fully invested in the High Risk Category. Market conditions are divorced from the broader economy as the Federal Reserve has flooded the financial system with trillions of new U.S. dollars and the U.S. economy is ravaged by the global pandemic. The key will be whether the economy will catch up to the rising financial markets or whether the economy will bring the financial markets down to reality. If the indicators change during the quarter, we will update the models and send out an intra-quarter report. Model changes are targeted to occur around July 14th. If you have questions, please Contact Us.
Quarter Statements Available on Participant Website
Alerus is changing their default method for delivering statements. Starting with the 2020 Q2 statements delivered in July, quarterly statements will be posted to the Alerus participant website. You can Access the Site Here.
Statements can still be mailed. Call Alerus at 800-433-1685 to request that statements be mailed. As always, if you have questions, Contact Us.