MACSX & MAPIX

Investor

I hold both MACSX and MAPIX.

* MACSX has convertibles and preferred shares to tame volatility. Despite that, in recent years MAPIX has been able to produce mostly better portfolio risk management. The volatility are about the same. MAPIX has better upside/downside capture ratio, better sharpe, sortino and treynor ratios. MACSX has a slightly lower beta (against EFEA index) vs MAPIX but MAPIX has been able to produce higher alpha.

* MAPIX also had lost less in 2008 and gained more in 2009. In other years they were within a few percent of each other (mostly in favor of MAPIX)

* Both funds have roughly the same amount of emerging Asia and developed Asia exposure as part of their equity allocation. The main difference is in Japan exposure. MAPIX has higher Japan (+14%) vs MACSX has higher other developed Asia (+10%).

For portfolio simplification purposes, I'm strongly thinking of consolidating them into MAPIX on monday. As is often the case, most likely after I move assets to MAPIX, MACSX will probably do better.

mcmarasco

Investor, I too hold both funds (in equal percentages), BUT like you I am strongly considering consolidating them into MAPIX for the exact reasons you have outlined!!

I also agree that as soon as I do, MACSX will take off! I like the alledged diversification of holding both, but again, I'm not sure it truly is buying me much!!

Any thoughts, anyone???????

Thanks

MaxBialystock

Giggling at your closing remark, Investor. Ya, me too: I own both, but I own about 12X MORE MAPIX than MACSX. And MACSX is at present my ONLY taxable, regular, non-retirement animal.

AndyJ

I used to do Matthews in Mapix and Macsx at 1:1; now it's about 2:1, exactly for the reasons Investor cites.

I also added a tiny chaser of Maptx just for fun; as of December, it had the best 1-year Sharpe of the Matthews regional funds.

It'd be good, however, to understand exactly how the convertibles in Macsx have been affecting it lately. I'm clueless; anybody knowledgeable on that? I've had the feeling in the past that they're a wild card in the Macsx performance history, and maybe not always a positive one.

AJ

MaxBialystock

Good question about the convertibles, AJ. I'll watch to see if you get a response, too. I guess in broad terms they are "convertible" bonds which, at a particular "strike" price, are converted (or CAN be converted) into equity shares? But even if THAT much is correct, it still isn't MUCH.

fundalarm

funny, Investor. Consolidated January 3rd: just as you are contemplating -- sold MACSX and added to MAPIX. Correlation is extremely high, the rest of my thinking is exactly like yours. One line item fewer.

Mark

With respect to convertible securities, it depends on what kind MACSX holds. While it's usually considered to be usually bonds it can also include notes and preferred shares, which can possess many different traits.

Convertible bonds allow the holders to convert their creditor position to that of an equity holder at an agreed upon price and are ideal for investors demanding greater potential for appreciation than bonds provide, and higher income than common stocks offer. The option of the bond to convert it to common stock adds value. However, I'm guessing that MACSX is just going after the extra income.

MaxBialystock

Thanks, Mark!

MaxBialystock

MAPIX = quarterly dividends. MACSX= twice/year dividends. But MACSX divs. look juicier, just after a quick glance going back to 09 December, 2009.