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What Are You ... Buying ... Selling ... and/or Pondering? (Summer 2017)
Hi Bob, thanks for the explanation on WAEMX. Much appreciated. I don't have access to BISMX at Fidelity (TF and $100,000 minimum) but I'm looking at other alternatives such as SFILX or FISMX. I own SFGIX already but looking for something in the small/mid cap area as well.
We did a lot of screening in the international small cap arena, as usual taking a long time to make a decision. In the end, it came down to BISMX and PRIDX. We really like both funds, both management teams, and each has a strong and compelling thesis. In the end, we opted for a value-driven, concentrated portfolio that should exhibit somewhat lower downside risk. Either fund is a good option. I would suggest that you consider PRIDX since BISMX is not available to you. I note that BISAX is available at Fidelity and NTF, with slightly higher expenses than the I shares.
Sold considerable gains in DSENX and POSKX. I'll probably put the proceeds in more conservative investments, such as PMZDX and WWIAX. I'm content with my gains and feel as though I can trim some gains at this point.
Sold xly today, decided I have more than enough diversification and got 10% return since December. This subsector may be flat for a while imho. Have plenty of consumer staples in portfolio, it behaves better if we get that downturn we expect will come.
Sold a chunk of HY muni last week to raise cash for possible opp'ties created by selling pressure around the Fed meeting. Have been standing pretty much pat for a while.
P.S. Just fyi for anyone who thinks they need a shorter duration FI option to PIMIX: according to the monthly portfolio stat spreadsheet released toward the end of last week, the Ivascyn gang has reduced duration to 1.91, the shortest it's been in a year. Pimcome may be entering a low-vol phase where they're happy to keep the yield as the total return.
Trying to put a little excess cash to work. Will probably plop it into PRFHX, Price's high yield muni. Fully expect to lose money on this one (near term anyway). But how big a pile of cash does one wish to sit on? Nothing out there's cheap right now IMHO. At least Andy drove the price down a bit by selling some of his high yield munis recently.
At least Andy drove the price down a bit by selling some of his high yield munis recently.
Happy to be some help on that score, Hank. I'm guessing the cash will go into CEFs, maybe mostly munis if they cooperate, when there's a selloff of some degree. (I'm at ~ 10% cash now; was almost fully invested as of a week ago.)
ADDING: Commencing in May, but continuing into June, I am finding value in beaten-down subsectors within the REIT space.
Retail: NNN, O, STOR, KIM Medical: VTR, MPW, OHI Office: DEA (govt lessor)
Sentiment/action 'stinks' in certain of these subsectors. Apparently, Amazon is going to be only retailer around in 2-3 years (tongue in cheek). Am avoiding the mall-REITs, though I concede, they may get a bounce. Am continuing to reconnoiter for additional, unloved REIT candidates. Avoiding the REIT index, as it has too many a)mall REITs and b)expensive REIT subsectors.
Considering adding to my MLP holdings. MPLX specifically, looks interesting. May add to my EPD position too. Both yield 6% or better.
SOLD OUT: of my PIMCO bond CEFs (in April). The income is salivating, but the premiums suggest they are overloved. I've no idea what the catalyst will be to bring them back/near to NAV, but something will come along. Also sold out of my muni CEFs in early May, on price/complacency concerns.
Shovelled proceeds from the CEF sales to lower-beta OEF bond vehicles (PIMIX, PTIAX).
We did a lot of screening in the international small cap arena, as usual taking a long time to make a decision. In the end, it came down to BISMX and PRIDX. We really like both funds, both management teams, and each has a strong and compelling thesis. In the end, we opted for a value-driven, concentrated portfolio that should exhibit somewhat lower downside risk. Either fund is a good option. I would suggest that you consider PRIDX since BISMX is not available to you. I note that BISAX is available at Fidelity and NTF, with slightly higher expenses than the I shares.
Hi Bob I'm curious what % allocation you are making in your equity portfolio to international vs. Domestic? Also to emerging markets... I've increased my allocation to intl. to 27%. Of this emerging represents about 6%. Thanks for any feedback you can provide.
Although I have dialed my investment activity back a good bit during the summer I still visit the board from time-to-time and will ocassionaly post or make comment.
Not BobC but that is a good question you have asked of him and I'd be interested to read what he has to say. For me, within equities, I am 33% foreign with 5% of that in emerging. In the small/mid area I am at 24%. Now that summer is here I am still in the cash building mode until something breaks with plans to continue to expand my footprint in hybrid type funds. During a good stock market pullback I'll buy some equity spiff (special investment position).
And, as hank said ... sometimes, enough cash is simply enough. Thus, the expansion of my footprint in hybrid funds that trend to be active with their asset allocations. Even though I kicked PASAX to the curb a few years back I might open a new position in it soon while adding to some exisitng positions owned but not yet fully built. It looks as though PASAX is targeting the foreign markets and is known to be active with its positioning which at times it has missed or been early to the party (even before the band arrived with no punch to drink or food to eat). My concern is that it might not be nimble enough to make the necessary changes timely enough to meet my expectations. I left WASAX and MFLDX for similar reasons as they became bloated and slow to move.
Currently, my three hybrid income darlings are APIUX, AZNAX & PMAIX all paying monthly distributions. The fees are high in these funds; but, it cost money to actively engage the markets plus they are broker sold A share funds. Other share classes might be available.
I know the question of "hybrid" came up a while back and I withheld comment. I'm not aware of it being an "official" category at Lipper, M* or elsewhere. Possibly, they attach the term hybrid to some other type of investment. (umm ... perhaps hybrid income). But don't really know. As one astute poster commented back than, balanced funds constitute a type of hybrid fund.
What I'm getting around to is that some of us use the term hybrid to denote a fund we really aren't sure what to call, has numerous components, is managed somehow differently than its peers and, frankly, doesn't fit any of our other sleeves well. In other words, it's a personal word choice (actually intended as an adjective) that describes something which has meaning only within the context of our own investment approach.
Personally, I've used a group of "hybrids" for many years which constitute 35-40% of my core (buy and hold) group: PRPFX, TRRIX, and OAKBX. Most would agree with the first; some might agree with the second; few, if any, would label the last one hybrid. Obviously I'm seeing something with that one that they're missing.
Being a retail investor below are my thoughts on hybrid fund types.
Generally a hybrid fund is made up of some sort of mix of stocks, bonds and cash; but, it can also include some other type of assets as well. That makes it's use open to reference for a wide spectrum of fund types some with special mandates, like distribution funds. From my thinking some good examples of hybrid type funds would include, but not limited to, balanced funds, asset allocation funds, world allocation funds, target-date funds as well as convertible securities funds along with some income funds that use a lot derativies and probally some other funds as well.
Over the past couple of years I have been expanding my base of hybrid funds to make my portfolio more adaptive to the ever changing maket conditions. Usually, the more complex a hybrid fund is the higher its fee and cost structure are as it cost money to use deratives and to short positions. Take the Balanced Fund of America which is a well known balanced fund (of hybrid nature) held by many including myself and has been known to adjust its stock and bond mix from time-to-time falling on the low end of the cost schedule for hybrid funds. While some other hybrid fund types that are more complex and use a wider spectrum of assets generally cost more (fund of funds and funds with special strategies). But, for me, the cost is worth it to expand my asset base coverage and make my portfolio more adaptive.
Thanks again for stopping by and reading; but, most of all for making a directed comment. I hope my added comment is satisfactory in explaining my use of the word "hybrid" as I meant its use to cover a wide spectrum of funds. Currently, I have three investment sleeves when combined hold 21 hybrid funds of many types and account for more than 40% of the portfolio. I am in the process of expanding my foot print of hybrid funds within my portfolio not so much in their number but in amount invested. And, generally stock market prices are soft during the summer making for a good time to add to some of these hybrid fund positions.
We did a lot of screening in the international small cap arena, as usual taking a long time to make a decision. In the end, it came down to BISMX and PRIDX. We really like both funds, both management teams, and each has a strong and compelling thesis. In the end, we opted for a value-driven, concentrated portfolio that should exhibit somewhat lower downside risk. Either fund is a good option. I would suggest that you consider PRIDX since BISMX is not available to you. I note that BISAX is available at Fidelity and NTF, with slightly higher expenses than the I shares.
Hi Bob I'm curious what % allocation you are making in your equity portfolio to international vs. Domestic? Also to emerging markets... I've increased my allocation to intl. to 27%. Of this emerging represents about 6%. Thanks for any feedback you can provide.
Tex
Tex, we probably have a higher ratio of intl/em to domestic stock than most at this time. Our moderate-to-aggressive portfolio equities are about 41-43% intl/em. Then within the asset classes, we increase the risk profile. For example we add an intl small cap, with a bit more allocation to more aggressive portfolios. Hope this helps.
Hi guys! Opened a small position in GIBLX. It's my 3rd bond position....and last. Will build over time. Also opened a small position in DSENX. Again, will build over time. Just waiting for something to happen..... God bless the Pudd
If I was in that position the question would be whether the cash they're throwing in is worth the effort to move the account and potentially move it back or giving up the flexibility to buy more of the funds they'll hold but won't allow you to add. In my case I at least consider rebalancing once each year and occasionally I like to add to or reduce a fund based on what's going on so I would have to feel rewarded for the effort and I'd probably want to leave a portion of the funds at Fido, or somewhere else, so I could add when or if I wanted.
had proposed to me tonight by ML to move accounts to them from Fido
David, I am curious that you even have accounts at ML. What is your reason for this, especially in light of their unwillingness historically to put clients' interests first via a signed document attesting to this, and second, given their current re-trenching of their take on the DOL rule. First they stated the changes would be in the clients' interests, then they backtracked, saying commissions would be allowed, but not mentioning the fiduciary aspect. Do you get some kind of special treatment/services that you would not get at Fidelity? Just curious.
most Fido funds and similar can be moved and reinvested in, even if not purchased anew outright --- ML does not offer them in the first place
includng DSEEX, which ML does not offer (that share class)
they throw in a little cash per move as incentive / reward
trying to think what could be regretted down the road; of course I could always xfer back
also thinking I would leave one large account w fido, just on loyalty principle, or something
Hank and others, we call these "dynamic" funds, in that the management teams have the ability to change their allocation among domestic/international stocks and bonds and cash. We use TIBIX, FPACX, and WHGIX in many portfolios, depending on the level of risk. Some older accounts have PRWCX (which has been closed for a long time), and OAKBX. Together, our dynamic and alternative buckets are typically about 20% of total assets. You may recall that we had FPACX on our watch list last year after it stumbled in 2015. But Romick seems to have the fund back on track, and we are still using it, although FPA ought to get the fees below 1%.
I know the question of "hybrid" came up a while back and I withheld comment. I'm not aware of it being an "official" category at Lipper, M* or elsewhere. Possibly, they attach the term hybrid to some other type of investment. (umm ... perhaps hybrid income). But don't really know. As one astute poster commented back than, balanced funds constitute a type of hybrid fund.
What I'm getting around to is that some of us use the term hybrid to denote a fund we really aren't sure what to call, has numerous components, is managed somehow differently than its peers and, frankly, doesn't fit any of our other sleeves well. In other words, it's a personal word choice (actually intended as an adjective) that describes something which has meaning only within the context of our own investment approach.
Personally, I've used a group of "hybrids" for many years which constitute 35-40% of my core (buy and hold) group: PRPFX, TRRIX, and OAKBX. Most would agree with the first; some might agree with the second; few, if any, would label the last one hybrid. Obviously I'm seeing something with that one that they're missing.
Comments
I am using AMLP, FEN and FENY. If it gets really ugly, I'll be buying bigger.
P.S. Otherwise, I'll just add to my "boring" funds ....VWINX, TAIFX and VWELX.
Regards,
Ted
Regards,
Ted
P.S. Just fyi for anyone who thinks they need a shorter duration FI option to PIMIX: according to the monthly portfolio stat spreadsheet released toward the end of last week, the Ivascyn gang has reduced duration to 1.91, the shortest it's been in a year. Pimcome may be entering a low-vol phase where they're happy to keep the yield as the total return.
Retail: NNN, O, STOR, KIM
Medical: VTR, MPW, OHI
Office: DEA (govt lessor)
Sentiment/action 'stinks' in certain of these subsectors. Apparently, Amazon is going to be only retailer around in 2-3 years (tongue in cheek). Am avoiding the mall-REITs, though I concede, they may get a bounce. Am continuing to reconnoiter for additional, unloved REIT candidates. Avoiding the REIT index, as it has too many a)mall REITs and b)expensive REIT subsectors.
Considering adding to my MLP holdings. MPLX specifically, looks interesting. May add to my EPD position too. Both yield 6% or better.
SOLD OUT: of my PIMCO bond CEFs (in April). The income is salivating, but the premiums suggest they are overloved. I've no idea what the catalyst will be to bring them back/near to NAV, but something will come along. Also sold out of my muni CEFs in early May, on price/complacency concerns.
Shovelled proceeds from the CEF sales to lower-beta OEF bond vehicles (PIMIX, PTIAX).
I'm curious what % allocation you are making in your equity portfolio to international vs. Domestic? Also to emerging markets... I've increased my allocation to intl. to 27%. Of this emerging represents about 6%. Thanks for any feedback you can provide.
Tex
Although I have dialed my investment activity back a good bit during the summer I still visit the board from time-to-time and will ocassionaly post or make comment.
Not BobC but that is a good question you have asked of him and I'd be interested to read what he has to say. For me, within equities, I am 33% foreign with 5% of that in emerging. In the small/mid area I am at 24%. Now that summer is here I am still in the cash building mode until something breaks with plans to continue to expand my footprint in hybrid type funds. During a good stock market pullback I'll buy some equity spiff (special investment position).
And, as hank said ... sometimes, enough cash is simply enough. Thus, the expansion of my footprint in hybrid funds that trend to be active with their asset allocations. Even though I kicked PASAX to the curb a few years back I might open a new position in it soon while adding to some exisitng positions owned but not yet fully built. It looks as though PASAX is targeting the foreign markets and is known to be active with its positioning which at times it has missed or been early to the party (even before the band arrived with no punch to drink or food to eat). My concern is that it might not be nimble enough to make the necessary changes timely enough to meet my expectations. I left WASAX and MFLDX for similar reasons as they became bloated and slow to move.
Currently, my three hybrid income darlings are APIUX, AZNAX & PMAIX all paying monthly distributions. The fees are high in these funds; but, it cost money to actively engage the markets plus they are broker sold A share funds. Other share classes might be available.
And, so-it-goes ...
Old_Skeet
I know the question of "hybrid" came up a while back and I withheld comment. I'm not aware of it being an "official" category at Lipper, M* or elsewhere. Possibly, they attach the term hybrid to some other type of investment. (umm ... perhaps hybrid income). But don't really know. As one astute poster commented back than, balanced funds constitute a type of hybrid fund.
What I'm getting around to is that some of us use the term hybrid to denote a fund we really aren't sure what to call, has numerous components, is managed somehow differently than its peers and, frankly, doesn't fit any of our other sleeves well. In other words, it's a personal word choice (actually intended as an adjective) that describes something which has meaning only within the context of our own investment approach.
Personally, I've used a group of "hybrids" for many years which constitute 35-40% of my core (buy and hold) group: PRPFX, TRRIX, and OAKBX. Most would agree with the first; some might agree with the second; few, if any, would label the last one hybrid. Obviously I'm seeing something with that one that they're missing.
Thanks for making comment.
Being a retail investor below are my thoughts on hybrid fund types.
Generally a hybrid fund is made up of some sort of mix of stocks, bonds and cash; but, it can also include some other type of assets as well. That makes it's use open to reference for a wide spectrum of fund types some with special mandates, like distribution funds. From my thinking some good examples of hybrid type funds would include, but not limited to, balanced funds, asset allocation funds, world allocation funds, target-date funds as well as convertible securities funds along with some income funds that use a lot derativies and probally some other funds as well.
Over the past couple of years I have been expanding my base of hybrid funds to make my portfolio more adaptive to the ever changing maket conditions. Usually, the more complex a hybrid fund is the higher its fee and cost structure are as it cost money to use deratives and to short positions. Take the Balanced Fund of America which is a well known balanced fund (of hybrid nature) held by many including myself and has been known to adjust its stock and bond mix from time-to-time falling on the low end of the cost schedule for hybrid funds. While some other hybrid fund types that are more complex and use a wider spectrum of assets generally cost more (fund of funds and funds with special strategies). But, for me, the cost is worth it to expand my asset base coverage and make my portfolio more adaptive.
Thanks again for stopping by and reading; but, most of all for making a directed comment. I hope my added comment is satisfactory in explaining my use of the word "hybrid" as I meant its use to cover a wide spectrum of funds. Currently, I have three investment sleeves when combined hold 21 hybrid funds of many types and account for more than 40% of the portfolio. I am in the process of expanding my foot print of hybrid funds within my portfolio not so much in their number but in amount invested. And, generally stock market prices are soft during the summer making for a good time to add to some of these hybrid fund positions.
Old_Skeet
Opened a small position in GIBLX. It's my 3rd bond position....and last. Will build over time. Also opened a small position in DSENX. Again, will build over time. Just waiting for something to happen.....
God bless
the Pudd
most Fido funds and similar can be moved and reinvested in, even if not purchased anew outright --- ML does not offer them in the first place
includng DSEEX, which ML does not offer (that share class)
they throw in a little cash per move as incentive / reward
trying to think what could be regretted down the road; of course I could always xfer back
also thinking I would leave one large account w fido, just on loyalty principle, or something
would be interested in thoughts of others
ML does offer DSENX and PONDX, and free etfs (all of them)
yes, would leave some accounts at Fido