FYI: Investors looking for bonds that often feel like stocks can consider convertible bonds, which are easily accessible via the SPDR Bloomberg Barclays Convertible Securities ETF CWB,
Convertible bonds are hybrid securities that give investors the option to convert those bonds into shares of common stock of the issuing company.
Historically, convertible bonds have been among the best areas of the bond market to be involved with when interest rates rise, but CWB betrayed that reputation last year. Amid fears about the state of high-yield corporate debt and the fourth-quarter equity market plunge, CWB showed its correlation to equity market gyrations.
After slumping in the last three months of 2018, CWB finished the year lower by 2 percent compared to 0.1-percent gain for the Bloomberg Barclays U.S. Aggregate Index.
The correlations between convertible debt and stocks can't be understated.
Regards,
Ted
https://www.marketwatch.com/story/a-bond-etf-with-an-equity-feel-2019-03-29-1246451/printM* Snapshot CWB:
https://www.morningstar.com/etfs/ARCX/CWB/quote.html
Comments
Performance of ANNPX is outstanding. Some select stats below
Age = 28 years, Mgr Tenure = 28 years
Life APR = 11.6 which beats SP500 by 0.8
Max DD = 42.6 vs. SP500 at 50.9
Life Sortino = 1.07 vs. SP500 at 0.86
but v interesting, ty
What are the downsides that you see?
ANNPX 15,20,25 year stats over PRWCX are very solid. I like to use PRWCX as a benchmark against any new fund I am evaluating given the long term solid track record of PRWCX. I'm surprised that a fund with performance stats comparable(and better in some areas) to PRWCX has not been discussed more on this forum.
My investigation is on the capricious side thus far: its ytd vs VONE and VONV, FPURX and FMSDX, which is only a few weeks' sample, but also looking at its behavior since 2/21/20, the slightly deeper Feb-March dip than the latter two mfunds, then a spectacular runup, yet flat or slumping since, and then this latest slump.
Trying to understand the lability, in other words.
VONE has done well, below are some comparative stats between VONE and ANNPX, first number is ANNPX, second number is VONE
3Y Stats
APR: 27.5, 26.1
MaxDD: 13.8, 20.3
Sortino: 3.25, 2.36
Rolling 1Y APR: 34.1, 24.8
5Y Stats
APR: 19.7, 18.3
MaxDD: 13.8, 20.3
Sortino: 2.56, 1.72
Rolling 3Y APR: 21.1, 14.9
ANNPX invests primarily in U.S. dollar-denominated convertibles.
Since these two funds are vastly different, why compare them?
Chart https://stockcharts.com/h-perf/ui?s=ANNPX&compare=FCVSX,FMSDX,FPURX,PRWCX&id=p99932100988
Nobody know how convertibles will perform in the future of course but ANNPX outperforming SP500 over a 28 year period with a lower DD, higher Sortino and the same manager is quite extraordinary.
Very few funds have outperformed SP500 at the 25+ year mark and none with the same lead manager.
Based on your stats, ANNPX performance has indeed been excellent for the 3 Yr. / 5 Yr. periods.
Flattish the last year.
If you compare it w PRWCX since '93 and stop short of the post-dip big runup, it is not quite as impressive, although it does outperform JABAX and FPURX, two of my faves.
So: very nice.
I included VONE since I wanted to see what a good alt does against a broad garden-variety equity index. That's the whole point of alts for me.
I look at the two most recent 'stress' moments, that Feb-March '20 dip and also ytd, just to check how its holdings did in these unusual, or perhaps not so unusual, recent times.
What do you think has happened the last 3mos to underperform those four so significantly? Not that it matters.
ty
(1)CV19 Bear(Bear 6): 202001 - 202003
FAYZX: -10.9
FPURX: -11.3
ANNPX: -11.5
JABAX: - 11.6
PRWCX: -12.0
(2)GFC Bear(Bear 5): 200711 - 200902
JABAX: - 16.6
ANNPX: -26.0
PRWCX: -28.9
FPURX: -30.0
(3)Dec '18 Selloff: 201812 - 201812
FAYZX: -3.4
ANNPX: -4.4
PRWCX: -4.6
JABAX: - 4.7
(4)Rising Rates: 200406 - 200702
PRWCX: 12.8
ANNPX: 11.7
FPURX: 10.4
JABAX: 9.8
(5)Full Cycle 5: 200711: 201912
PRWCX: 9.1
ANNPX: 8.3
JABAX: 7.9
FPURX: 6.9
(6)Full Cycle 6: 202001: 202112
ANNPX: 28.1
VONE: 23.6
FPURX: 19.7
PRWCX: 18.3
JABAX: 15.6
This fund is definitely on my buy list now, just need to figure out an appropriate entry point.
In any case, sure looks like one would need a whole lot of conviction and long term staying-power to own this fund. I know I do not.
A three month(or even 1 year) stretch of underperformance does not bother me within the context of solid longer term performance.
Regards benchmarks, while ANNPX has performed well compared to SP500, I see a moderate allocation benchmark as more appropriate (PRWCX, VWELX, VBINX).
Simplistically I see ANNPX performance close enough to PRWCX during periods 1-5 but significantly outperforming PRWCX by 10 points during period 6 which is impressive imo. As cherry on top, ANNPX even outperformed VONE during this period.
One question if I may ?
#1 has 4 entries.
#2-#5 have 3 entries
#6 has added VONE
Possible no info for missing data (fund) ?
The different entries are due to the inception dates of the funds and the fact that I did not capture all perf data for all funds for all periods. If this forum allowed screenshots, would have been easy for me to upload all perf data for all periods for all funds. I'm too lazy to post this elsewhere and link it here.
VONE is not a comparable to ANNPX but I included it in my post due to prior comments and when VONE performance was in between the true comparables
I edited my compare post and added JABAX to all periods. JABAX performance during GFC stands out.
@yogi
During Period 5, ANNPX co-relation with PRWCX is 0.91 and 0.89 with IWM.