Retired for a year or so, we have had maybe 5-7% in small caps. I recently decided to sell my favorite nominal SC fund GABSX because FLPSX dupes its behavior so closely and is full of SC holdings. I may switch to a position in WEMMX in addition, to satisfy my itch for true SC holdings and also to continue with greedy Gabelli's solid research and results.

For comparison, here's what David Sherman calculated after the October '13 dividend, when RSIVX was brand-spanking new.
Current yield: 8.43%
Approximate expected gross investment yield: 7.12%
Approximate duration: 3.12 yr.
Avg market price: 103.61
Currency exposure: 94.5% U.S. $, 4.5% Canadian $
Estimated liquidity (scale = 1-10; 10 = most liquid): 7.42
Estimated average credit quality: BB*
As I recall, the "approximate expected gross investment yield" of 7.12% was an average of YTW and YTM, so it should be comparable to the current "approximation" (provided in this thread) of 5.9%. That tells us where the portfolio has moved over the past months ... shorter maturity (as in David's report) and lower yield.
Also, that's expected yield "gross of expenses," so the E.R. has to come out to show the yield we'll receive -- so, roughly, 4.7% retail, 4.9% inst'l.
Good news is that there's not much difference between "expected" dividend yield and SEC yield, which probably indicates that the bonds in the portfolio aren't that high-priced, as is the case with so many other bond funds now.

Hmmm ... thin pickins. I screen Morningstar for funds that met three criteria: at least 15% EM, at least 15% US and at least 15% bonds. By their calculation, about six funds qualified:
CCA Core Return (CORAX) - same unwarranted $100k minimum as the institutional shares
Dreyfus Satellite Alpha (DSAAX) - with under a million AUM, the satellite will soon ...
Invesco Global Targeted Returns (GLTAX)
Midas Perpetual (MPERX) - "perpetual what?" you might well ask.
Pioneer Multi-Asset Real Return (PMARX) - arguably the best of them
RPG Diversified Risk Parity (DRPAX) - an "oh, so not" fund of ETFs
USAA Real Return (USRRX) - at least it's tame.
My predilection would be to look at Leuthold Global (GLBLX). It's light on emerging markets now (9% or so, still well above the group norm) but has the flexibility to move in when conditions warrant.
Too, remember that any portfolio with global blue chips will be deriving near to half of its revenue from the emerging markets.
For what that's worth,
David

In the early years of retirement, I use funds that can go all over the capitalization spectrum, so I leave the percentages to the managers. FWIW, I'm now around 15% in smallcap and about 30% in midcap by M*'s definitions.

Heard back from Mr. Schaja this morning. Here's what he says:

The 30-day SEC yield as of May 31 was 4.47% Retail and 4.72% for Institutional class. We estimate the yield-to-worst at 5.2% and the yield-to-maturity at 6.6% (both gross of expenses) and an average of the two, or 5.9% would be a good approximation. The portfolio is on the short side of our maturity range, with an effective average maturity of only a little over 2 years. We expect to generate returns in excess of the yield as we have historically.

I suspect that the nature of the fund's strategy might cause the guys to be a bit chary about publishing a single number but the complexity of the compliant explanation required for yield/worst versus yield/maturity versus SEC yield and the probability that effective yield lies somewhere in between might explain the lack of a single number on-site. Morty did not say that. I'm guessing.
So they wouldn't be surprised to generate 5.9% yield plus some capital appreciation.
For what that's worth,
David

30+ and I've decided to target about 15% as where my non-em small cap allocation lies (+/- 3% depending on relative valuation and drift) global fund so the international allocation is determined by others.

FYI: Pension Funds, University Endowments Diversified Into Other Investments With Disappointing Performances
Regards,
Ted
http://online.wsj.com/articles/big-investors-missed-stock-rally-1403567478#printMode

FYI: The S&P 500 Energy sector has been on a tear lately. In the second quarter, the Energy sector is up 13%, and it closed today more than 2.6 standard deviations above its 50-day moving average
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2014/6/23/energy-sector-goes-wild.html?printerFriendly=true
M* Equity Energy Fund Returns: http://news.morningstar.com/fund-category-returns/equity-energy/$FOCA$EE.aspx

I want to add to my existing retirement position but am tempted to pay Fido $50 and put it into SGOIX instead (I also have an existing position), which is steadier, although its mgrs have been there only 7 years. Thoughts welcome.

Do The Math? We've had this discussion before.
February 4th Discussion
http://www.mutualfundobserver.com/discuss/discussion/comment/35684/#Comment_35684
Nov- Dec 2013 Discussion
http://www.mutualfundobserver.com/discuss/discussion/comment/32277/#Comment_32277

@steppinrazor 6/2/2014 0.0357/share
When mutual funds are "slow on the draw" in posting their dvd distributions (and some, e.g. TRP, are notably slooooow), I simply go to fidelity.com and use their Quotes tool (see drop down menu under Research). For some reason, they are as fast as anyone at grabbing reported distributions and posting them accurately, at times quite a bit before MFs get around to posting the info on their own websites.

FYI: Fund companies were hyping their alternative investments, smart-beta index issues and every new bell, whistle and sparkle. Money managers were talking about strategies for reducing risk and volatility, and seemingly every fund firm in the exhibit hall was celebrating five-year bull-market records with performance so great that it seemed beyond the reach of ordinary investors
Regards,
Ted
http://www.marketwatch.com/story/5-ways-mutual-fund-companies-could-serve-you-better-2014-06-23/print?guid=C0A18E4A-FAEE-11E3-9C64-00212803FAD6

>>>>Did you have ice water injected into your veins as a newborn, or did you have that done later?
p.s. I live in Carson City, less than 15min drive from the eastern crest overlooking Lake Tahoe, 30min from Desolation Wilderness, and 60min from backside of Yosemite (but a lot lower). I could get in a couple of day hikes for you next week if it would make you feel better.:)<<<<<
heezsafe, lived 16 years in Reno and my favorite hiking and backpacking spot in your neck of the woods was the Sawtooth Range outside of Bridgeport.
As an aside, going to try the Cman route and abstain from posting. Yes, I know, tried this once before unsuccessfully but this time will try harder. Good luck to all.
Edit: All the time I posted here, I never once mentioned my book. And the ones that knew I wrote one, I asked them kindly not to mention it. The last thing I wanted was to come across as someone pandering a book, especially one written almost 15 years. Last year my royalty income came to a grand $102. I believe you can get this free online, otherwise just pick up a used one. Thanks Mark. You are a swell guy. I e-mailed you yesterday politely asking if you could delete the reference to me writing a book.

FYI: Unless a fragile market triggers outflows, the Oakmark International fund is likely to remain closed to retain its flexibility and concentrated portfolio, says manager David Herro
Regards,
Ted
http://www.morningstar.com/Cover/videoCenter.aspx?id=651583&lineup=mutualfunds
The Fund Is Ranked # 2 In The (FLCB) Fund Category By U. S. News & World Report:
http://money.usnews.com/funds/mutual-funds/foreign-large-blend/oakmark-international-fund/oakix

FYI: Funds that use quantitative stock-picking models are on a roll. A list of 52 U.S.-sold quant funds compiled by Morningstar beat more than 80% of their respective peers over the trailing three years through June 13, and the group outperformed its respective peers in 2011, 2012, 2013, and thus far in 2014.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=651588

@Junkster Did you have ice water injected into your veins as a newborn, or did you have that done later?
p.s. I live in Carson City, less than 15min drive from the eastern crest overlooking Lake Tahoe, 30min from Desolation Wilderness, and 60min from backside of Yosemite (but a lot lower). I could get in a couple of day hikes for you next week if it would make you feel better. :)

DGoodrow said...
GLRBX is a 50/50 balanced fund...much more to my liking,..
If you're comfy with that fund co. and management,you've got to like JAZZX . The James Long-Short Fund has out performed GLRBX since its May 2011 start.http://www.jamesfunds.com/fund-overview.php?fund=JAZZX A L/S strategy would be a good diversifier as would the previously mentioned Precious Metals.Also you could use E M debt and the M L P /infrastructure space.Also look @ David Glancy's PYSAX or PVSAX. He has a good record and often holds 15-20% cash,mostly for an unforeseen opportunity.Use RSIVX for your 1-3 year expenses .
Scott has often mentioned the need for infrastructure investment across the world and many of the funds specializing in that space are up nicely this year.$$ cost ave. into your chosen alternatives and re-balance @ your comfort level.
From $4 Tril to $9 Tril in next 10 years.
http://news.yahoo.com/global-infrastructure-capital-spending-hit-9-trillion-2025-040519158--sector.html
E M debt for the brave.
A number of companies have plans to sell dollar-denominated bonds, including the US$1.5 billion unsecured notes proposed by state-owned oil and gas giant PT Pertamina; $450 million bonds by coal miner PT Berau Coal Energy and $175 million bonds by property developer PT Pakuwon Jati, among others.
Pertamina’s notes, which are offered with 6.45 percent coupon rate and will be due in 2044, obtained a Baa3 rate from Moody’s Investor Service. Under the rating, the obligation is seen to have a moderate credit risk.
“The outlook of the rating is stable,” Moody’s wrote in a statement published on Friday.
And The Braver!
Troubled coal miner PT Berau Coal Energy released late on Thursday a prospectus highlighting its plan to sell up to $450 million in debt papers
Proceeds from the bond issuance would be used to refinance its $450 million bonds, which were issued in 2010 and are due to mature next year
The new bonds will mature in five years and will be offered with a maximum coupon rate of 12 percent, the prospectus reads. That compares with Berau’s 2010 bond coupon rate of 12.5 percent.
Berau, one of the major coal miners in the country, is struggling to manage its liquidity as the global coal outlook remains uncertain.
The coal miner reported $10.18 million in net loss during the first three months of the year, leading to worries over the company’s ability to pay its debts.
Amid concerns of rising private sector debts, Indonesian companies are continuing to seek external funding in foreign currencies to support expansion or the refinancing of previous debts.
Raras Cahyafitri, The Jakarta Post, Jakarta | Business | Sat, June 21 2014, 2:47 PM
http://www.thejakartapost.com/news/2014/06/21/firms-sell-dollar-bonds-despite-rising-concerns-over-private-debt.html

What a prize idiot piece of equivocal writing. Where is Hulbert when you need him? GMO feels the same way, maybe, probably, sort of, but without the handwringing and the fancy prose.
\\ investors should not allow their guards to come completely down. [[ooooh]] For while July may prove just as pleasant this year as May and June, history has shown [[whatever that means]] that if [[love it]] the bear were to finally emerge from hibernation, that July is one of its favorite months to come out growling.
Meaning if it happens, whatever that means, it is more likely to happen the next few weeks? Or something.
I love rich maroon wordsmithing.
I dread what he is going to write if there is a big slump in July. Of course, if a 25% drop for some time is going to make you fall dead, or even go sleepless, you ought not to be in the equity market in the first place.

"Lies, damned lies, and statistics." If one wants a quote.
While I agree that close is probably good enough for hand grenades (that's the whole point with them, after all), one gets 3 points for a ringer in horseshoes and one point for being close, so it's just another flawed analogy (at least on the professional horseshoe circuit).
But really, a 60/40 mix for someone under 40 (I'd say under 50)?
I'd be more impressed if someone proved rebalancing starting more than 20 years before retirement enhanced returns. The never rebalanced portfolio slightly outperformed with higher volatility in the cited example, even after starting with the drag of 40% bonds.
I agree with John Bogle who seems to support using Social Security as part of one's bond allotment and including more equities.
A bit surprised that rebalancing every 3 months, which seems a bit hyperactive, provided second best return.

Will the current good times in mutual fund performance continue? Well here is some more insight on the topic.
http://seekingalpha.com/article/2279573-this-is-when-the-bear-growls
Regards
Guido