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Just to make it easier for folks to link to the fund, I'm typing this post with ticker in the body. MFO will change it to a link.
CGVVX
I've looked at it and I personally prefer ARTGX over it as it has better risk profile. If you prefer something riskier than ARTGX, take a look at ARTHX
I'm looking at CGVVX, but nothing is really standing out to me (personally). In the world stock realm, I'd rather recommend Wintergreen (WGRNX), which continues to have the emerging market consumer as a sizable theme (which you may find of interest). WGRNX hasn't done as well this year, but I'm pretty positive on former Mutual Series manager David Winters.
Reply to @Mona: Answering that from a few different viewpoints.
1. I had a huge EM bond allocation around 2009/2010, then when EM bonds became such a big asset class, I sold TGINX and PEBLX in early 2011. My view was that when funds like TGINX were suddenly much larger in terms of AUM and new EM bonds were popping up left and right, it was time to depart. In terms of EM bond investing, it went from "How could you trust those governments?" to a huge asset class in terms of demand. In terms of the asset class itself, EM bonds are bigger now but are still a relatively illiquid asset class and is subject to volatility.
2. Was I too early? Yeah, and now you have EM bonds continuing to see inflows because everyone is looking for yield in a ZIRP environment. Are EM bonds richly valued? Probably. Chasing returns now? Maybe, but I think in this bizarro environment there's no way to know - demand for yield could go on for ages as ZIRP continues and everyone and their cousin is scrambling for yield. Some people like the EM story and are willing to just reinvest dividends as far as the eye can see. Others may want to wait for a better entry point, but again, who knows when that will be when people want yield as badly as they do.
3. I like EM bonds (and EM in general) from a long-term perspective. However, I thought I would get a pullback and did not, then wound up allocating to different things that I have a long-term view on, including a number of EM stocks. I continue to look at EM bonds (if I were to look, I'd really only be interested in the more flexible funds, such as TGINX, which can invest in govt bonds and corporates, as well as occasionally engage in hedging), but do not have really any room to allocate to them right now, but that may change over time.
So, do I like EM (bonds and otherwise) for the long-term? Yes. Have EM bonds run a lot? Absolutely, and are probably richly valued. However, who knows - fundamentals/valuation don't seem to be a priority when people are desperate for high yielding investments.
That's not a recommendation for jumping into them right now if you haven't already, but it is a compelling asset class for the long-term and something to keep on your radar.
Reply to @scott: Thanks, man. For me, 8 funds is a self-imposed maximum I want to have to worry about. Currently, since I'd already plowed my TRP small cap value (PRSVX) into my PREMX bucket, it's outpaced my other stuff lately, after a pretty good run-up. I'm not adding right now to PREMX, just letting divs. compound. I'm torn at the moment about which new fund to put some money into---money that will be showing up soon. I want domestic bonds. Tried DODIX, just didn't like their brand of bullshit. I've looked at DLFNX, realizing it's not a standard sort of safe, domestic core bond fund..... Or equities? TBGVX or TBCUX. Europe's in a mess, but that's a government issue. Tweedy invests in giant, established companies, mostly in western Europe. I have nothing in Europe right now, so the contrarian in me is salivating at the prospect of getting in at bargain prices. Still, TBGVX has a great record. TBCUX is new, and unhedged into the dollar. The USD is relatively strong lately compared to the Euro, with so many flying, racing into Treasuries...
Comments
CGVVX
I've looked at it and I personally prefer ARTGX over it as it has better risk profile. If you prefer something riskier than ARTGX, take a look at ARTHX
10% SFGIX
10% MAPIX or MACSX
10% SGOVX (or whatever share class)
10% FPACX
15% TEGBX
10% PREMX
10% TGINX (due to the greater flexibility - including EM corporates, etc)
5% MFLDX
15% YACKX
5% MPGFX
30% US/30% Foreign (mostly EM)/35% bonds (mostly EM) and 5% alternative.
I'm looking at CGVVX, but nothing is really standing out to me (personally). In the world stock realm, I'd rather recommend Wintergreen (WGRNX), which continues to have the emerging market consumer as a sizable theme (which you may find of interest). WGRNX hasn't done as well this year, but I'm pretty positive on former Mutual Series manager David Winters.
Do you think it's late (chasing returns) to get into a fund such as TGINX or DBLEX (similar in make-up)?
Mona
1. I had a huge EM bond allocation around 2009/2010, then when EM bonds became such a big asset class, I sold TGINX and PEBLX in early 2011. My view was that when funds like TGINX were suddenly much larger in terms of AUM and new EM bonds were popping up left and right, it was time to depart. In terms of EM bond investing, it went from "How could you trust those governments?" to a huge asset class in terms of demand. In terms of the asset class itself, EM bonds are bigger now but are still a relatively illiquid asset class and is subject to volatility.
2. Was I too early? Yeah, and now you have EM bonds continuing to see inflows because everyone is looking for yield in a ZIRP environment. Are EM bonds richly valued? Probably. Chasing returns now? Maybe, but I think in this bizarro environment there's no way to know - demand for yield could go on for ages as ZIRP continues and everyone and their cousin is scrambling for yield. Some people like the EM story and are willing to just reinvest dividends as far as the eye can see. Others may want to wait for a better entry point, but again, who knows when that will be when people want yield as badly as they do.
3. I like EM bonds (and EM in general) from a long-term perspective. However, I thought I would get a pullback and did not, then wound up allocating to different things that I have a long-term view on, including a number of EM stocks. I continue to look at EM bonds (if I were to look, I'd really only be interested in the more flexible funds, such as TGINX, which can invest in govt bonds and corporates, as well as occasionally engage in hedging), but do not have really any room to allocate to them right now, but that may change over time.
So, do I like EM (bonds and otherwise) for the long-term? Yes. Have EM bonds run a lot? Absolutely, and are probably richly valued. However, who knows - fundamentals/valuation don't seem to be a priority when people are desperate for high yielding investments.
That's not a recommendation for jumping into them right now if you haven't already, but it is a compelling asset class for the long-term and something to keep on your radar.