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Permanent Portfolio
TICKER
ASSETS
PRPFX
$ 3.6 billion
PERFORMANCE YTD 1 yr . 3 yr . 5 yr . 10 yr . 15 yr . 20.63 % 29.49 % 8.96 % 11.74 % 7.68 % 7.07 %
TOP 5 HOLDINGS Gold Bullion ; Gold Coins ; Silver Bullion ; Texas Pacific Land Corp .; Freeport-McMoRan Inc .
CONTACT INFO
866-792-6547 • permanentportfoliofunds . com
ASSET ALLOCATION ( As a % of portfolio )
28 + 23 + + 17 +
n Dollar Assets 28.16 % n Gold 22.64 % n Aggressive Growth Stocks 19.05 % n R . E . & Natural Resource Stk 17.14 % n Swiss Franc Assets 7.77 % n Silver 5.24 %
Performance and asset numbers as of 10 / 31 / 24 . Holdings as of 9 / 30 / 24 . Performance figures are for the institutional share class . Sources : Permanent Portfolio Family of Funds , Morningstar .
A Fund For Uncertain Times
The Permanent Portfolio has a 40-year track record of protecting and growing investor assets . By Jeff Schlegel
THINK OF THE PERMANENT PORTFOLIO AS A “ what if ” fund . As in , what would happen to your portfolio if the world went to hell in a handbasket ; and if it did , could you keep your nose above water — or possibly even profit from it ?
This fund , which began trading in 1982 , was developed in response to the turmoil that gripped the U . S . economy during the late 1970s and early 1980s . For people old enough to remember , that was an era marked by economic stagnation and gasoline shortages , as well as soaring inflation followed by skyhigh interest rates designed to choke inflation out of the system . And that ’ s only part of the story .
The fund ’ s founders sought to design a disciplined , multi-asset-class strategy aimed at protecting people ’ s wealth regardless of what the world threw at them .
“ The thinking was to produce a fund that would take the prediction and forecasting out of the way for the investor by providing them with a broad array of asset classes that would provide a return that would exceed inflation over the long term ,” says Michael Cuggino , whose firm , Pacific Heights Asset Management LLC , has subadvised on the fund since 2003 .
The fund ’ s creators , he says , did research on a variety of assets and percentage weightings , hoping to build a vehicle that preserves and increases the purchasing power value of its shares in any sort of economic or market conditions .
The resulting portfolio consists of six broad asset categories with targeted portfolio weightings . Gold represents 20 % of the mix , while silver is 5 %, Swiss franc assets represent 10 %, U . S . dollar assets contribute 35 %, real estate and natural resource stocks are at 15 %, and aggressive growth stocks are also at 15 %.
Those target percentages are guideposts , not a straitjacket . “ We ’ re required to stay reasonably close to our target weighting , and then rebalance periodically if we need to ,” Cuggino says . “ We tend to keep the model in line with the target percentages and make incremental adjustments as we go .”
DECEMBER 2024 | FINANCIAL ADVISOR MAGAZINE | 43