Model Portfolios  ( Sample PDF )

Argus Research offers our Model Portfolios report to serve the needs of our diverse client base.

Since 1997, Argus has maintained model portfolios that help brokers, account reps and others manage investment holdings for a wide range of clients. Originally encompassing five investment styles, the broker-based model portfolios have grown to six: Equity Income, Growth & Income, Blue Chip, Aggressive Growth, Mid-Cap Growth and New Economy. These portfolios enable brokers and account reps to manage investment holdings across a spectrum of clients, from retired, conservative investors requiring income to salaried recent college grads who can afford to take long-term risks and have no portfolio-income requirements. The information is published each month in the Model Portfolio Report.

The genus "model portfolio" occupies its own niche in the realm of investment management. A model portfolio is neither an index, such as the S&P 500, nor is it an actively managed mutual fund. Indexes, typically the benchmarks against which model portfolios are compared, are an inexact measurement device. For example, index performance, does not reflect any transaction costs, or management fees; it also ignores bid-ask spreads and execution effects, such as large block trades in small-float stocks. Unlike an index, the hypothetical model portfolios are actively managed, enabling managers to focus on securities they believe are likely to outperform the market. Whereas replication of a major index requires hundreds of holdings, the active management component permits the model portfolio manager to focus on a smaller number of securities.

Unlike a mutual fund, the Argus Model Portfolios are not adjusted on a real-time basis, except in exceptional cases. With mutual funds, the daily monitoring function can potentially lead to high levels of churn and potentially adverse tax consequences.

More significantly, mutual fund portfolio managers often rely for investment advice on the sell-side divisions of the major brokerages, which furnish investment research in hopes of generating brokerage commissions. In our view, this practice can sometimes lead to conflicted research.

Performance statistics are updated quarterly. These include rolling three-month, annual, and multiyear performance dating back to the portfolios' origins in 1997. The model portfolio values are adjusted to reflect hypothetical transaction costs and a management fee in line with actual commission and management schedules. Accordingly, performance is calculated net of fees and transaction costs, in line with industry standards. Past performance of the model portfolios is not indicative of future performance.

The hypothetical Model Portfolios are designed to be used in conjunction with other Argus Research Portfolio reports, including the Investment Portfolio Guide, which offers Asset Allocation models, and the Fixed Income Strategy Report, which lists specific income-oriented investments for portfolio consideration.

The following links will take you to Investment Policy Statements and performance information on the models.
 > Equity Income
 > Growth & Income
 > Blue-Chip Growth
 > Aggressive Growth
 > Mid-Cap Growth
 > New Economy 
 
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