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.
Support MFO
Donate through PayPal
Several Fund Manager changes. MAPIX/MACSX mentioned. (LIP)
First Eagle Global Income Builder Fund aims to deliver a meaningful but sustainable income stream across all market environments. Through bottom-up fundamental analysis focusing on global income-producing securities, the team seeks to avoid the permanent impairment of capital by investing only where they believe an adequate discount to intrinsic value exists. While securities are considered because they generate income, they are purchased because we believe they offer a substantial margin of safety
===
Principal Investment Strategies
To achieve its objective of current income generation and long-term growth of capital, the Global Income Builder Fund will normally invest its assets primarily in common stocks of U.S. and foreign companies that offer attractive dividend yields and a range of fixed income instruments, including high-yield, below investment grade (commonly referred to as ‘‘junk bonds’’), investment grade and sovereign debt, from markets in the United States and multiple countries around the world.
Investment decisions for the Global Income Builder Fund are made without regard to the capitalization (size) of the companies in which it invests. The Global Income Builder Fund may invest in any size company, including large, medium and smaller companies. Under normal circumstances, the Global Income Builder Fund anticipates it will allocate a substantial amount of its total assets to income-producing securities. That generally means that approximately 80% or more of the Global Income Builder Fund’s total assets will be allocated to such investments, which may include dividend paying equities, both high-yield (below investment grade) and investment grade debt, sovereign bonds, and various short-term debt instruments. The Fund may invest in securities with any investment rating, as well as unrated securities. The Fund may also invest (typically for hedging purposes) in derivative instruments such as options, futures contracts and options on futures contracts, credit default swaps, and swaps and options on indices.
The investment philosophy and strategy of the Global Income Builder Fund can be broadly characterized as a ‘‘value’’ approach, as it seeks a ‘‘margin of safety’’ in each investment purchase with the goal being to avoid permanent impairment of capital (as opposed to temporary losses in share value relating to shifting investor sentiment or other normal share price volatility).
That's neat! How long do you suppose a loss "in share value relating to shifting investor sentiment or other normal share price volatility" would have to last before it actually became a "permanent impairment of capital"? Couple of years maybe, or even longer?
Reply to @tgeno: Matthews is also now a manager on the multi-manager London investment trust Witan Pacific. Not necessarily a good or bad, just noting the expansion of Matthews. The Matthews portion of the fund (35%) will be their Asia Dividend strategy. It doesn't seem to note which of the managers will be working on the fund.
Reply to @Old_Joe: All loses are temporary until it becomes permanent.
IMHO, All of these stuff is mostly subjective, these strategy statements offer little value in terms of what the manager is going to do or if the strategy could be realized at all.
Comments
First Eagle Global Income Builder Fund aims to deliver a meaningful but sustainable income stream across all market environments. Through bottom-up fundamental analysis focusing on global income-producing securities, the team seeks to avoid the permanent impairment of capital by investing only where they believe an adequate discount to intrinsic value exists. While securities are considered because they generate income, they are purchased because we believe they offer a substantial margin of safety
===
Principal Investment Strategies
To achieve its objective of current income generation and
long-term growth of capital, the Global Income Builder
Fund will normally invest its assets primarily in common
stocks of U.S. and foreign companies that offer attractive
dividend yields and a range of fixed income instruments,
including high-yield, below investment grade (commonly
referred to as ‘‘junk bonds’’), investment grade and
sovereign debt, from markets in the United States and
multiple countries around the world.
Investment decisions for the Global Income Builder Fund
are made without regard to the capitalization (size) of the
companies in which it invests. The Global Income Builder
Fund may invest in any size company, including large,
medium and smaller companies. Under normal
circumstances, the Global Income Builder Fund
anticipates it will allocate a substantial amount of its total
assets to income-producing securities. That generally
means that approximately 80% or more of the Global
Income Builder Fund’s total assets will be allocated to
such investments, which may include dividend paying
equities, both high-yield (below investment grade) and
investment grade debt, sovereign bonds, and various
short-term debt instruments. The Fund may invest in
securities with any investment rating, as well as unrated
securities. The Fund may also invest (typically for hedging
purposes) in derivative instruments such as options,
futures contracts and options on futures contracts, credit
default swaps, and swaps and options on indices.
The investment philosophy and strategy of the Global
Income Builder Fund can be broadly characterized as a
‘‘value’’ approach, as it seeks a ‘‘margin of safety’’ in each
investment purchase with the goal being to avoid
permanent impairment of capital (as opposed to
temporary losses in share value relating to shifting
investor sentiment or other normal share price volatility).
investor sentiment or other normal share price volatility" would have to last before it actually became a "permanent impairment of capital"? Couple of years maybe, or even longer?
http://matthewsasia.com/resources/docs/pdf/ArticleReprints/Ignites Asia APAC a dividend investing hotspot Matthews.pdf
IMHO, All of these stuff is mostly subjective, these strategy statements offer little value in terms of what the manager is going to do or if the strategy could be realized at all.