Update:
https://www.sec.gov/Archives/edgar/data/1018593/000114420418052657/tv504302_497.htm
497 1 tv504302_497.htm VIRTUS ASSET TRUST
Virtus Conservative Allocation Strategy Fund
and Virtus Growth Allocation Strategy Fund,
each a series of Virtus Asset Trust
Supplement dated October 5, 2018 to the Summary Prospectuses,
Statutory Prospectus and Statement of Additional Information,
each dated July 23, 2018, as supplemented
THIS SUPPLEMENT SUPERCEDES THE SUPPLEMENTS DATED SEPTEMBER 25, 2018 AND OCTOBER 3, 2018 TO THE ABOVE-REFERENCED PROSPECTUSES AND SAI. THIS SUPPLEMENT REVISES CERTAIN DATES IN THE EARLIER SUPPLEMENTS.
Important Notice to Investors
On September 19, 2018, the Board of Trustees of the Virtus Asset Trust voted to liquidate the Virtus Conservative Allocation Strategy Fund and Virtus Growth Allocation Strategy Fund (the “Funds”). Based on the recommendation of management, the Trustees determined that liquidation is in the best interest of the shareholders and voted to direct the mandatory redemption of all shares of the Funds. Effective November 7, 2018, the Funds will be closed to new investors and additional investor deposits. The Funds’ investments may be sold in advance of the Funds being closed to new investors and additional investor deposits.
On or about November 13, 2018 (the “Liquidation Date”), each of the Funds will be liquidated at its net asset value. Prior to such time, shareholders may exchange their shares of the Funds for shares of the same class of any other Virtus Mutual Fund. Shareholders may also redeem their shares at any time prior to the Funds’ liquidation on the Liquidation Date. There will be no fee or sales charges associated with exchange or redemption requests.
Any shares not exchanged or redeemed by the close of business on the Liquidation Date will be redeemed and the account value distributed to shareholders, except shares held in BNY Mellon IS Trust Company custodial accounts, which will be exchanged for shares of the Virtus Newfleet Low Duration Income Fund. Shareholders with BNY Mellon IS Trust Company custodial accounts should consult the prospectus for the Virtus Low Duration Income Fund for information about that fund.
Because the exchange or redemption of your shares could be a taxable event, we suggest you consult with your tax advisor prior to the Funds’ liquidation.
Investors should retain this supplement with the Prospectuses and
Statement of Additional Information for future reference.
VAT 8622/CAS&GASFundsClosing2 (10/2018)

Hi Guys,
Carl Richards is often referenced in the context of risk management. He says smart things about investing in a simple way that most of us understand. That's also reflected in his many cartoons that drive his observations home. Here is a Link to a few of them:
https://www.advisorperspectives.com/newsletters12/pdfs/The_Best_of_Carl_Richards.pdf
Enjoy.
Indeed, a Behavorial Gap exists and subtracts from our investment success. Pictures are a great way to make a point memorable. With a little luck and some discipline we just might be able to minimize our many mistakes. But some mistakes will always happen. That's the way it is.
Best Wishes

A little something to toss around the field. From the article:
"Here's my appearance from Wednesday on ETF IQ on Bloomberg TV in case you missed it. We touched on:"
https://seekingalpha.com/article/4210006-debunking-passive-investing-myths?isDirectRoadblock=false

All my funds are down today. Increased bond yield finally arrived after Fed hike in September.
https://reuters.com/article/us-global-markets/rising-u-s-bond-yields-hit-global-markets-asian-stocks-wobble-idUSKCN1MF04H
How will the market reacts in next hike in December?

Portfolio down -.41, only green here GASFX
Derf

FYI: The S&P 500 is currently trading down just over 1%, and if these declines hold through the closing bell, it would be the first decline of 1% or more for the index since late June. At 70 trading days, the current streak ranks as the third longest of the bull market behind the 109 trading day streak that ended in March 2017 and the 112 trading day streak that ended earlier this year. Besides those two streaks, the only other streak that was nearly as long was the one that ended in July 2014 at 66 trading days.
While the current streak of days without a 1% decline is long relative to recent history, from a wider lens, there have been a number of streaks that lasted longer. The chart below shows all S&P 500 streaks without a 1% decline in the S&P’s history. In the post-WWII period, there have actually been 24 streaks that lasted longer with the bulk of those coming in the 1950s/1960s. The longest streak ended in November 1963 at 174 trading days. Considering how painful the decline feels today, can you imagine how bad it felt in 1963 when the S&P 500 finally declined more than 1% after going eight months without one?
Regards,
Ted

https://www.sec.gov/Archives/edgar/data/935015/000119312518292835/d623182d497.htm
497 1 d623182d497.htm ARTISAN PARTNERS FUNDS, INC.
Filed pursuant to Rule 497(e)
File Nos. 033-88316 and 811-08932
ARTISAN PARTNERS FUNDS, INC.
ARTISAN INTERNATIONAL SMALL CAP FUND (the “Fund”)
SUPPLEMENT DATED 4 OCTOBER 2018
TO THE FUND’S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION (“SAI”)
Important Notice Regarding Changes in the Portfolio Manager, Name, Investment Policies and Non-Fundamental Restrictions of the Fund
Effective 15 October 2018, Rezo Kanovich is the portfolio manager of the Fund and the Fund will open to new investors. In connection with the appointment of Mr. Kanovich as the Fund’s portfolio manager, the board of directors of the Fund approved changes to the Fund’s name, certain investment policies and non-fundamental restrictions. The changes are expected to reposition the Fund as a small- and mid-capitalization fund with greater degrees of freedom than permitted by the Fund’s current investment strategies. As a result of these changes, the Fund is expected to experience significant portfolio turnover as it transitions its holdings to be consistent with the Fund’s new investment policies, resulting in increased transaction costs, including brokerage commissions and other transaction costs, and the realization and/or distribution to shareholders of higher capital gains than might generally be expected under normal circumstances. In addition, the Fund may hold higher than normal cash during the transition period.
Accordingly, effective 15 October 2018, the following changes will take effect:
1. Mr. Kanovich is appointed as the portfolio manager of the Fund and all references and information relating to Messrs. Yockey and Hamker with respect to the Fund are removed.
2.The Fund will open to new investors and all references to the closure of the Fund are removed.
3.The Fund’s limit on how much cash it tries to maintain is increased from no more than 5% of its total assets to no more than 10% of its total assets.
In addition, effective on or about 4 December 2018, the following additional changes will take effect:
1.The Fund is renamed “Artisan International Small-Mid Fund.”
2.The Fund’s non-fundamental policy related to its name adopted in accordance with Rule 35d-1 under the Investment Company Act of 1940, as amended, is replaced with the following, which cannot be changed unless shareholders are notified at least 60 days prior:
Under normal circumstances, the Fund invests no less than 80% of its net assets plus any borrowings for investment purposes at market value at the time of purchase in common stocks and other securities of small- and mid-cap companies.
3. The following policies are adopted, which can be changed without notifying shareholders:
Small- and mid-cap companies for this purpose are those companies with a market capitalization below $30 billion or having a market capitalization similar to the constituents of the MSCI All Country World (ACWI) ex-U.S. SMID Index at the time of the Fund’s investment. Under normal market conditions, the Fund will invest at least 65% of its total assets at market value at the time of purchase in securities of non-U.S. companies. The Fund may invest in developed markets and emerging and less developed markets.
4.The Fund’s benchmarks are changed from “MSCI EAFE Index” and “MSCI EAFE Small Cap Index” to “MSCI ACWI ex USA SMID Net Index” and “MSCI ACWI ex USA Small Cap Net Index.”
5. The Fund’s limit on investing more than 50% of its total assets in emerging and less developed markets is removed and the Fund may invest in debt instruments to the extent consistent with the Fund’s other investment policies and restrictions.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
___________________________Manager change info from Artisan Partners------------------------------
https://www.artisanpartners.com/content/dam/documents/press-releases/mf/Kanovich-Announcement-4-Oct-2018-vR.pdf
or
https://www.artisanpartners.com/individual-investors/news-insights/news/press-releases/2018/kanovich-announcement.html

Drilling down into the S&P 500 sectors for recession proof industries (showing little draw down on profit margins during the last two recessions):
- Tobacco (Consumer Staples)
- Household Products (Consumer Staples)
- Healthcare Equipment (Healthcare)
- Pharmaceutical (Healthcare)
- Industrial Gases (Materials)
Surprise (to me):
- The profit margins for the Health Sector as a whole has steadily fallen from 12.5% (in 1995) to 9% (in 2018)
Boring, but steady sectors:
- Healthcare Distribution
- Drug Retail
- Glass & Metal Containers
Also,
Oct 3, 2018 follow up report by Ed Yardeni: Performance 2018 S&P 500 Sectors & Industries
https://yardeni.com/pub/peacockperf.pdf

Ed Yardeni is often highlighted here by MFO posters linked by many here:
https://mutualfundobserver.com/discuss/search?Search=yardeni
This morning I stumbled upon this report titled: Stock Market Briefing: S&P 500 Sectors and Industries Profit Margins dated October 4, 2018.
Profit Margins and the price of the S&P 500 Index seem to be "in the moment" indicators and comparing the two seems to be one data point to follow. Since 2017, the S&P 500 index seems to be out pacing (being priced up) above profit margins which is captured in chart 7 (S&P 500 vs trailing profit margins) in his report:

Report (lots of charts):
yardeni.com/pub/sp500margin.pdf

https://www.sec.gov/Archives/edgar/data/1018593/000114420418052254/tv504130_497.htm
497 1 tv504130_497.htm VIRTUS ASSET TRUST
Virtus Conservative Allocation Strategy Fund
and Virtus Growth Allocation Strategy Fund,
each a series of Virtus Asset Trust
Supplement dated October 3, 2018 to the Summary Prospectuses,
Statutory Prospectus and Statement of Additional Information,
each dated July 23, 2018, as supplemented
THIS SUPPLEMENT SUPERCEDES THE SUPPLEMENT DATED SEPTEMBER 25, 2018 TO THE ABOVE-REFERENCED PROSPECTUSES AND SAI. THIS SUPPLEMENT REVISES THE LIQUIDATION DATE NOTICE IN THE EARLIER SUPPLEMENT.
Important Notice to Investors
On September 19, 2018, the Board of Trustees of the Virtus Asset Trust voted to liquidate the Virtus Conservative Allocation Strategy Fund and Virtus Growth Allocation Strategy Fund (the “Funds”). Based on the recommendation of management, the Trustees determined that liquidation is in the best interest of the shareholders and voted to direct the mandatory redemption of all shares of the Funds. Effective October 16, 2018, the Funds will be closed to new investors and additional investor deposits.
On or about November 13, 2018 (the “Liquidation Date”), each of the Funds will be liquidated at its net asset value. Prior to such time, shareholders may exchange their shares of the Funds for shares of the same class of any other Virtus Mutual Fund. Shareholders may also redeem their shares at any time prior to the Funds’ liquidation on the Liquidation Date. There will be no fee or sales charges associated with exchange or redemption requests.
Any shares not exchanged or redeemed by the close of business on the Liquidation Date will be redeemed and the account value distributed to shareholders, except shares held in BNY Mellon IS Trust Company custodial accounts, which will be exchanged for shares of the Virtus Newfleet Low Duration Income Fund. Shareholders with BNY Mellon IS Trust Company custodial accounts should consult the prospectus for the Virtus Low Duration Income Fund for information about that fund.
Because the exchange or redemption of your shares could be a taxable event, we suggest you consult with your tax advisor prior to the Funds’ liquidation.
Investors should retain this supplement with the Prospectuses and
Statement of Additional Information for future reference.
VAT 8622/CAS&GASFundsClosing (10/2018)

I could be wrong, but I believe Uncle Sam requires RMDs in order to collect on the deferred taxes. You don't have to spend your RMDs but you do have to pay the taxes.
59.5 & 70.5...what's up with these ".5''s?

"What I'd really like to at least do is get rid of the '.5,'" he says. "The 70 1/2 age causes a lot of confusion, especially for people born in June or July. We should just make it the year that you turn a certain age."

The Boglehead's Wiki has an interesting approach to retirement withdrawals called, "Variable Percentage Withdrawal (VPW)".

Variable percentage withdrawal (VPW) is a withdrawal method that adapts to the retiree's retirement horizon, asset allocation, and portfolio returns during retirement. It combines the best ideas of the constant-dollar, constant-percentage, and 1/N withdrawal methods to allow the retiree to spend most of his portfolio using return-adjusted withdrawals. By adapting withdrawals to market returns, VPW will never prematurely deplete the portfolio.
The VPW method uses a variable (increasing) percentage to determine withdrawals from a portfolio during retirement. Each year, the withdrawal is determined by multiplying that year's percentage by the current portfolio balance at the time of withdrawal.
The VPW method and spreadsheet were collaboratively developed and improved by a group of Bogleheads®

https://bogleheads.org/wiki/Variable_percentage_withdrawal

FYI: Susan Dziubinski from Morningstar.com said, it isn't easy for a fund to earn our top Morningstar fund analyst rating of Gold. Funds that do so are best in breed, models in their respective categories. In fact, fewer than 200 funds across dozens of fund categories earn Gold ratings. Here are three funds that recently joined the Gold-rated fund club.
Regards,
Ted
https://www-prd.morningstar.com/videos/884151/3-newish-goldrated-funds.html

FYI: An investor holding a simple S&P 500 index fund continues to beat major university endowments.
Yale University and other major endowments have recently reported investment performance for their fiscal years ending in June, and none have topped the S&P 500, which returned 14.4% including dividends.
Yale returned 12.3%; Harvard University, 10.0%; the University of Pennsylvania, 12.9%; and Dartmouth College, 12.2%.
Regards,
Ted
https://www.barrons.com/articles/ivy-league-endowments-1538530379

FYI: Tax-deferred retirement saving isn't forever. At age 70 1/2, you must start withdrawing funds from 401(k) and IRA accounts. Yet many retirees find the required minimum distribution rules burdensome, and surprisingly large numbers would prefer not to draw down funds at all.
Regards,
Ted
https://www.morningstar.com/articles/884105/should-rmd-rules-be-reformed.html

@MFO Members: "underwear all bunched up" not me, I wear !
Regards,
Ted :)

https://www.sec.gov/Archives/edgar/data/872649/000119312518288720/d629055d497.htm
497 1 d629055d497.htm LOOMIS SAYLES FUNDS II
LOOMIS SAYLES SMALL CAP GROWTH FUND
Supplement dated October 1, 2018 to the Prospectus of the Loomis Sayles Small Cap Growth
Fund, dated February 1, 2018, as may be revised and supplemented from time to time.
Effective October 1, 2018, the Loomis Sayles Small Cap Growth Fund will reopen to new investors and will begin accepting orders for the purchase of shares from new investors.
Accordingly, all references to the Loomis Sayles Small Cap Growth Fund being closed to new investors are hereby removed from the Prospectus and Summary Prospectus.

Jurrien Timmer has been posting an interesting chart on Twitter that concerns EM:
https://twitter.com/timmerfidelity/status/1045381216080474120?s=21
What do they mean by “hard currency “. Is that US dollar denominated?

FYI: After I pulled one old column out of my archives, I found another piece — from an old “mailbag” feature in which I answered questions from readers — in which I had said essentially the same thing in a more frivolous tone. I post it now mainly as a reminder that whenever people start questioning the value of diversification — as countless investors did in late 1998, 1999, and early 2000 — overconcentration and overconfidence must be on the rise, and the risk of being underdiversified is likely to materialize. I don’t think we’re there yet in 2018, but you should always be vigilant against the risk of believing that risks have been repealed. Look carefully at the letter the reader sent me. If you ever hear anyone else — or yourself! — sound like that, it’s time to broaden your portfolio
Regards,
Ted
http://jasonzweig.com/in-defense-of-diversification/

FYI: Emerging market assets, especially equities, are poised to rebound in the fourth quarter from a steep selloff earlier this year, BlackRock said on Tuesday, adding that it favors emerging market hard currency over local currency debt.
Regards,
Ted
https://www.reuters.com/article/us-emerging-markets-blackrock/blackrock-emerging-market-assets-especially-stocks-set-to-rise-in-fourth-quarter-idUSKCN1MC1N9

FYI: Welcome to autumn !
Regards,
Ted
https://www.mutualfundobserver.com/2018/10/october-1-2018/