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What Are You Buying ... Selling ... and/or Pondering? (April & May 2017)
Hi Crash! I can only speak for PTIAX. I've owned this fund. I sold it in the pivot because I thought rates were going up. The duration is high, with half of the bonds being junk. Saying that, it is one I will own again....why? The monthly payout. PONDX is another fund to think about.....it's large though. But it also has a good payout. GIBLX is one I'm looking at now....or perhaps JHNBX. Just saying... God bless the Pudd
Hello, @Catch22. My thought was to buy whichever fund I finally decide upon in a TAXABLE account. I'm 7+ years away from worrying about RMDs in the Trad. IRAs. (Trad. IRAs are with TRP and Mairs & Power.)
Taxes are not much of a consideration. The wife and I DO want to re-locate into something further south, without lawn and snow to worry about. Condo. Townhouse? At this time, Gainesville looks attractive. I keep looking. It's even a bit of fun to do so.
If bought in taxable acct, taxes owed, if any (10% bracket) will get paid year by year and won't hurt much, if at all. I just don't want to be adding to IRAs at this point. Doing so feels like standing in line at the "Department of Redundancy Department." Giggle.
So, I hope you didn't misunderstand: that hi-yield muni fund ACTDX is not one I own--- yet. Thanks also to @Puddnhead.
I'm at a standstill, currently. Given the big run-up since the election, I'm not sure about putting more funds to work in equities. I have plenty of equity, balanced and bond funds at the moment. Just don't know what to do with a small amount of money that is sitting in a money market fund not needed for everyday cash.
PTIAX looks great, but I'd feel better about it if, like PONDX/PIMIX, it had a record that extended back to the 2008 crisis. I like my bond funds to provide ballast, since I'm not smart and decisive enough to do like Junkster and cut funds loose when they start to underperform. I tend to buy then hold too long...
PTIAX and PONDX travel different paths, as one should expect with a flexible bond fund.
I would still favor Pimco, especially with current management and the magic sauce that is applied to many of their funds. The below link is a compare of total return from August 31, 2010 (inception of PTIAX) to date, between the above two funds. ---PONDX = 71.9% ---PTIAX = 44.7%
I like PTIAX also, but it should be said it's good performance is mostly due to riding the Muni-train for most of it's life. That is a good thing, but the next question would be will the manager shift focus if and when needed. So far I believe they are sticking with Munis fwiw.
@Ted: was also looking at FAX (and FEO and LGI) and found that discounts have really shrunk in recent months. Do you pay much heed to premium/discount in your CEF trades?
BenWP: Regardless of the discount or premium, what matters to me is the share price at the time of purchase and the subsequent total return of the CEF. I bought FAX for the 8.4% yield. Regards, Ted
I felt the thread should keep going and be continued so as to not to break it's flow; therefore, it has now been retitled to include both the months of April & May.
Thanks to all that have made comments.
For me, I'm still pretty much with what I posted during the first part of April. That is throttle down mode in some equity funds and adding to some of my hybrid fund positions with part of the sell proceeds and then parking some money in cash through the summer.
Also, since the first of the year there has been a shift within my equity allocation where my fund managers have decreased their domestic holdings and increased their foreign along with decreasing their defensive and sensitive sector allocations while increasing the cyclicals. Within styles, there has been a slight movement towards growth and from small towards midcaps and large. Currently, hybrid type funds make up about 45% of my portfolio. I plan on moving towards making this 50% keeping cash at about 20%, fixed income funds at about 10% and the residual 20% in mostly all equity funds. In this way, the portfolio's hybrid fund managers will play a bigger role in the portfolio's overall positioning along with making the portfolio more adaptive to the forever changing markets. Some of the noteworthy sector increases were in financials, technology and consumer cyclicals. Interestingly, energy was decreased.
A hybrid balanced index fund (SFAAX) that I don't own but follow as of it's March 31st fact sheet rebalanced form a 60/40 stock/bond mix to 60% stocks, 33% bonds and 8% cash. A link to SFAAX's fact sheet is below through Google. It will be interesting to see how it is positioned come it's June 30th fact sheet. Also, you can view it's allocaton mix through it's Morningstar fund report.
Come late summer or early fall (or should my market barometer provide a buy signal before then) I'll become a buyer of equities and increase my allocation to them reducing cash. I have found the "Sell in May" strategy works more times than not. And, I have been in an equity trim mode since mid March.
BenWP: Regardless of the discount or premium, what matters to me is the share price at the time of purchase and the subsequent total return of the CEF. I bought FAX for the 8.4% yield. Regards, Ted
Nothing new. Slightly tilting toward international. I do have a laundry list, but something tells me not buying would not make me regret for too long. I will stay patient.
Hi guys! As I look over the portfolio, I see almost all positions near or at 52-week highs save one. Yes, VWINX is lagging noticeably. Were one to start a small position or toe hold, now might be the time. Since I'm raising cash, I will be watching. May you step carefully, Grasshopper, and avoid the do-do's of life. God bless the Pudd p.s. Duke likes that.
For the time being, I'm staying the course. I will create an account in PTIAX along the way, not right away. And I'm grateful for the thoughts and reactions about that fund, offered here, in response to my query. I'm impressed with PRIDX YTD. I'm holding, not adding. It's 6.72% of portfolio.
I have no idea what to do at this point. My asset allocation is pretty well set, but I have a small amount of cash sitting on the sidelines and I'm getting antsy LOL.
Regarding PTIAX, you're right Mike...about 36% in muni's.
PRESS, Unless I am reading the bar chart incorrectly, 24.7% are tax-exempt.
Here's the 3/31 fact sheet: The difference in the two muni figures you all are quoting is the stake in taxable munis - 21% T/E and 14% taxable. They replaced some T/E with taxable last year.
The biggest chunk is in mortgages - mainly non-agency - not junk on the order of junk corporates. It's a barbell strategy - high yielding mortgages with some credit risk on one side, mainly munis with rate risk on the other, all adding up to a fund that's tilted toward rate risk, but much less rate risk than an all-IG fund, and with much larger yield.
Barbelling is quite the rage these days. PIMIX does a bit of it, according to the monthly & quarterly portfolio reports, and one of the latest favorites, GIBLX, is also into it, with similar results to PTIAX ... but with lower yield and apparently a bit more rate reward/risk.
PIMIX and PTIAX are in some ways good complements for each other - both very nice yield, with usually somewhat offsetting credit and rate risk.
Main moves in the port at this house lately have been in cutting back CEFs. I'm all Pimco taxable FI in that department; those funds have been in the sweet spot for quite a while, but some of the premia (and z-scores) are getting close to the ozone layer. The gains are pretty hefty, and now seems like a good time to put a chunk of them in the bank.
Like some of the more knowledgable M* CEF commenters are saying, the risk is getting greater that any equity blip could hit even FI CEFs hard, given the credit risk and the historically high prices that most are sporting ... and I'm thinking of that dynamic as meaning I've got more equity-like risk than is comfy at this point.
I may need to reduce or eliminate my position in PTIAX (I own it at Schwab) to make room for an international fund. I can increase my position in another fund/account that is heavy in Non-Agency RMBS (I own it at Vanguard).
What muni fund(s) come to your mind that would fairly closely resemble the credit quality and duration of the 21% tax-exempt munis in PTIAX? OPTAX? PHMIX?
Threw a "smidgen" at a gold fund (OPGSX) today. Tantamount to gambling. I've owned this fund before. Steady as a drunken sailor. If it pops next few months, I'll take the profit and run. And if it falls further - little lost. (Investing with Oppenheimer often resembles gambling.)
You are buying and I have been selling ... I guess, that is what makes a market. For me, what has been moving within my own portfolio is mostly found in the growth area. My global growth sleeve is doing well which consists of ANWPX, SMCWX & THOAX along with my specialty and theme sleeve which currently has a focus in emerging markets (NEWFX), business development (LPEFX) and infrastructure (PGUAX).
Usually, sometime in May I close shop (so-to-speak) ... and, with stock valuations being what they are in the market ... Well, it is time for me to knock off for a while and enjoy some summer activities. Still in the process of moving towards my summer asset allocation.
If I am not around much come June ... Please carry on. I plan to be back come fall where I am usually more active with my investing endeavors.
Comments
I can only speak for PTIAX. I've owned this fund. I sold it in the pivot because I thought rates were going up. The duration is high, with half of the bonds being junk. Saying that, it is one I will own again....why? The monthly payout. PONDX is another fund to think about.....it's large though. But it also has a good payout. GIBLX is one I'm looking at now....or perhaps JHNBX. Just saying...
God bless
the Pudd
Is the high yield muni fund you mentioned inside or outside of an IRA???
Taxes are not much of a consideration. The wife and I DO want to re-locate into something further south, without lawn and snow to worry about. Condo. Townhouse? At this time, Gainesville looks attractive. I keep looking. It's even a bit of fun to do so.
If bought in taxable acct, taxes owed, if any (10% bracket) will get paid year by year and won't hurt much, if at all. I just don't want to be adding to IRAs at this point. Doing so feels like standing in line at the "Department of Redundancy Department." Giggle.
So, I hope you didn't misunderstand: that hi-yield muni fund ACTDX is not one I own--- yet. Thanks also to @Puddnhead.
PTIAX and PONDX travel different paths, as one should expect with a flexible bond fund.
I would still favor Pimco, especially with current management and the magic sauce that is applied to many of their funds.
The below link is a compare of total return from August 31, 2010 (inception of PTIAX) to date, between the above two funds.
---PONDX = 71.9%
---PTIAX = 44.7%
http://stockcharts.com/freecharts/perf.php?PTIAX,PONDX&n=1675&O=011000
Regards,
Ted
FAX:
http://www.aberdeen-asset.co/static_files/documents/c2ebe1a2-1055-49d3-97f7-f6d70509bafb/2/30622-cd-fax.pdf
Regards,
Ted
Thanks to all that have made comments.
For me, I'm still pretty much with what I posted during the first part of April. That is throttle down mode in some equity funds and adding to some of my hybrid fund positions with part of the sell proceeds and then parking some money in cash through the summer.
Also, since the first of the year there has been a shift within my equity allocation where my fund managers have decreased their domestic holdings and increased their foreign along with decreasing their defensive and sensitive sector allocations while increasing the cyclicals. Within styles, there has been a slight movement towards growth and from small towards midcaps and large. Currently, hybrid type funds make up about 45% of my portfolio. I plan on moving towards making this 50% keeping cash at about 20%, fixed income funds at about 10% and the residual 20% in mostly all equity funds. In this way, the portfolio's hybrid fund managers will play a bigger role in the portfolio's overall positioning along with making the portfolio more adaptive to the forever changing markets. Some of the noteworthy sector increases were in financials, technology and consumer cyclicals. Interestingly, energy was decreased.
A hybrid balanced index fund (SFAAX) that I don't own but follow as of it's March 31st fact sheet rebalanced form a 60/40 stock/bond mix to 60% stocks, 33% bonds and 8% cash. A link to SFAAX's fact sheet is below through Google. It will be interesting to see how it is positioned come it's June 30th fact sheet. Also, you can view it's allocaton mix through it's Morningstar fund report.
https://www.google.com/search?noj=1&site=webhp&source=hp&q=SFAAX+Fact+Sheet&oq=SFAAX+Fact+Sheet&gs_l=hp.13..0i22i30k1.1299.8572.0.11930.16.16.0.0.0.0.330.3465.0j1j12j2.15.0....0...1c.1.64.hp..1.15.3444...0j46j0i131k1j0i46k1j0i10k1j0i30k1.ABFCXPdDDh8
Come late summer or early fall (or should my market barometer provide a buy signal before then) I'll become a buyer of equities and increase my allocation to them reducing cash. I have found the "Sell in May" strategy works more times than not. And, I have been in an equity trim mode since mid March.
Thanks for stopping by and reading.
Old_Skeet
Last revised: May 3, 2017
http://ptamfunds.com/documents/ptam-difference_ptiax_final.pdf
Ted do you care about ROC on FAX? Looks like it's been spinning off a ton of ROC in recent years.....
See:
http://cef.morningstar.com/distribution?t=FAX®ion=usa&culture=en-US&ops=&cur=USD
Unless I am reading the bar chart incorrectly, 24.7% are tax-exempt.
As I look over the portfolio, I see almost all positions near or at 52-week highs save one. Yes, VWINX is lagging noticeably. Were one to start a small position or toe hold, now might be the time. Since I'm raising cash, I will be watching. May you step carefully, Grasshopper, and avoid the do-do's of life.
God bless
the Pudd
p.s. Duke likes that.
In my 401k I've been creeping back toward 100% position in index and long dated target funds (whatever I'm able to purchase I'm not blocked out of).
The biggest chunk is in mortgages - mainly non-agency - not junk on the order of junk corporates. It's a barbell strategy - high yielding mortgages with some credit risk on one side, mainly munis with rate risk on the other, all adding up to a fund that's tilted toward rate risk, but much less rate risk than an all-IG fund, and with much larger yield.
Barbelling is quite the rage these days. PIMIX does a bit of it, according to the monthly & quarterly portfolio reports, and one of the latest favorites, GIBLX, is also into it, with similar results to PTIAX ... but with lower yield and apparently a bit more rate reward/risk.
PIMIX and PTIAX are in some ways good complements for each other - both very nice yield, with usually somewhat offsetting credit and rate risk.
Cheers - AJ
Like some of the more knowledgable M* CEF commenters are saying, the risk is getting greater that any equity blip could hit even FI CEFs hard, given the credit risk and the historically high prices that most are sporting ... and I'm thinking of that dynamic as meaning I've got more equity-like risk than is comfy at this point.
Most of those sales are going into cash for now.
I may need to reduce or eliminate my position in PTIAX (I own it at Schwab) to make room for an international fund. I can increase my position in another fund/account that is heavy in Non-Agency RMBS (I own it at Vanguard).
What muni fund(s) come to your mind that would fairly closely resemble the credit quality and duration of the 21% tax-exempt munis in PTIAX? OPTAX? PHMIX?
Mona
You are buying and I have been selling ... I guess, that is what makes a market. For me, what has been moving within my own portfolio is mostly found in the growth area. My global growth sleeve is doing well which consists of ANWPX, SMCWX & THOAX along with my specialty and theme sleeve which currently has a focus in emerging markets (NEWFX), business development (LPEFX) and infrastructure (PGUAX).
Usually, sometime in May I close shop (so-to-speak) ... and, with stock valuations being what they are in the market ... Well, it is time for me to knock off for a while and enjoy some summer activities. Still in the process of moving towards my summer asset allocation.
If I am not around much come June ... Please carry on. I plan to be back come fall where I am usually more active with my investing endeavors.
Wishing all ... a great summer.
Old_Skeet