Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Per MFO: think 30 - 90 day maturity Per M*: any fixed instrument with less than one year to maturity [is] cash for the purposes of calculating a fund’s asset-allocation breakdown
One can't look at M*'s figures and conclude that there's even a dime's worth of cash in either of these funds for the purpose of liquidity. (But you will get cash-like behaviour in terms of interest rate sensitivity.)
"RiverPark Strategic Income Fund seeks high current income and capital appreciation consistent with the preservation of capital..."
I bailed on this fund about six months ago when it was clear that the managers would not be able to satisfy the capital preservation aspect in the prospectus. It proved to be the correct move for me.
Consistent with capital preservation is a phrase in lot of equity fund prospectuses too. Now I am ass dissapointed with rsivx as anyone, but let's not quote this and perpetuate the notion rsivx is a cash substitute.
To each his/her own. My expectations for this fund were much higher. For this fund to lose nearly 5% in one year is totally unacceptable to me. There are better options with a lower ER.
@Junkster: referencing the sizable cash positions?
Don't mind me. Sometimes I can be an ornery cuss. Just a reference to all the funds most here tend to congregate in. Not exactly wealth accumulation machines the past several years. But most investors find comfort in being part of a crowd - or something to that effect so said Charles Mackay.
RSIVX WBMAX ARIVX PRPFX AQRNX MFLDX WAFMX SFGIX I just hope GPMCX is not the next.
Not arguing with your overall point, but I don't think WAFMX and SFGIX deserve to be on that list. Sure, they've lost a good amount of money on an absolute basis, but they have still performed much better than the rest of the emerging markets sector. Folks that "jumped on the bandwagon" for these funds are still better off than if they had put their money in almost any other emerging markets fund.
RSIVX WBMAX ARIVX PRPFX AQRNX MFLDX WAFMX SFGIX I just hope GPMCX is not the next.
Not arguing with your overall point, but I don't think WAFMX and SFGIX deserve to be on that list. Sure, they've lost a good amount of money on an absolute basis, but they have still performed much better than the rest of the emerging markets sector. Folks that "jumped on the bandwagon" for these funds are still better off than if they had put their money in almost any other emerging markets fund.
Completely agree and I apologize. They are five star funds and I can understand long term investors being in them. I just have a thing about holding losers over a long period of time as I want my capital compounding on a *consistent* basis. I realize though 3 years is not a "long period of time" for most investors. Unlike most here, I don't have a salary or pension to fall back on during the lean times.
Comments
Per MFO: think 30 - 90 day maturity
Per M*: any fixed instrument with less than one year to maturity [is] cash for the purposes of calculating a fund’s asset-allocation breakdown
One can't look at M*'s figures and conclude that there's even a dime's worth of cash in either of these funds for the purpose of liquidity. (But you will get cash-like behaviour in terms of interest rate sensitivity.)
I bailed on this fund about six months ago when it was clear that the managers would not be able to satisfy the capital preservation aspect in the prospectus. It proved to be the correct move for me.