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Just took another look. BIAWX is quite concentrated. 33 equity holdings, only. (Morningstar.) Plus ONE "other" holding. No bonds. I'm growing a still-small position in the fund, for the nephews and niece here in the apartment. Solid companies. American Tower: big dividends, right?
I like concentrated funds as well, it says to me that I am getting the managers best ideas toward pursuing the funds objective(s). I also don't expect a large growth fund to hold too much cash or any bonds unless they are of the convertible type.
American Tower (AMT) pays a dividend but dividend growth and/or dividend income is not a stated objective of BIAWX. From their website "The fund seeks long-term capital appreciation by investing in the common stock of mid- and large-cap companies that, in the manager’s view, effectively implement sustainable business strategies to drive their prospects for future earnings growth."
As David has mentioned, they just impress me as thoughtful and prudent advisors.
I forgot to mention that I only wish it was available NTF at Fidelity. However since it currently isn't that requires me to be thoughtful and prudent as well.
If you're investing a smaller amount, you could invest in the fund via BAWAX. An extra 0.25% in annual expenses is used to offset the brokerage fee enabling you to buy it NTF.
Alternatively, if you invested $20K in BIAWX and hold for a year, you would recoup the $49.95 transaction fee (vs. BAWAX). Going forward, you would pay lower expenses than buying the fund NTF. You could add to the fund for $5/buy.
I did just that @msf in purchasing BIAWX and I also use the $5 automatic buy program but that doesn't allow me to escape the $49.95 fee when considering or attempting to take advantage of opportunistic "buys" on massive down days as we've been experiencing lately. I can't manage $20K on each purchase. Such is life. However that also allows the fund company to somewhat control the money flow into or out of the fund which may be beneficial.
Yes it's quite possible that other brokerage platforms might offer BIAWX with an NTF option but I'm not interested in opening another account. In fact I've been closing accounts to simplify matters for the eventual takeover by my children.
@Mark Agree with your considerations for parking accounts with one vendor. An estate may be complex enough without the burden of too many investment accounts for heirs to become involved. I recall you're mostly Fidelity, as is the entirety with us. We don't need more than the vast number of choices available for a superb one-stop investment house. Apologies for taking this thread from its original destination.
@Mona - I can't find any precise data to answer your question. I suppose you could give them a call at (800) 645-3923. (Phone number obtained from the Fact Sheet)
Morningstar reports a tax drag of 0.49%, less than one-quarter of the group average.
Here's the key: fast-growing funds are always more tax-efficient than others because the tax cost gets spread out over more and more investors. So the fund might do something taxable in March but, by 12/31, there are a lot more people to share the cost so the average burden drops.
The sting comes when asset growth ends or reverses, sometimes because the fund closed to new investors. I have no particular reservation about the efficiency of BIAWX, just wanted to flag the unique circumstance that's making a good fund look even better.
Speaking of concentrated funds, looking for ARTNX to get available at Fidelity NTF.
Nothing too surprising with top holding for this one - Facebook, Google, Oracle, Anthem, Cognizant, Citi, Amex, but need something more value focused, so bought some today at TD ntf
Hi, Mona. Yes, lower turnover helps. Tax conscious selling helps. Burgeoning asset base helps. I can separate out how much any of them account for the level of efficiency.
I think concentrated funds can make sense in a high quality large cap portfolio. Think Yacktman, Jensen. But I think they can be terrible in a value low quality portfolio—think Fairholme—and in volatile stock groups like small caps.
if I were still in it, and had only a few thou remaining or whatever, I would stick, just to see --- it ain't going to zero
I like concentrated funds, and one always hopes it will revert to a yacktman situation or similar
but he has sure screwed the pooch recently
I learned a few years ago that he and tillinghast live like a block or four apart, downtown, and I wondered if they ever met at the BPL or for coffee and eggs at a back bay eatery to chat
Comments
Plus it's easier to analyze things, vs a fund with 300+ positions of sub-1-percent amounts, which I consider pointless holdings anyway
American Tower (AMT) pays a dividend but dividend growth and/or dividend income is not a stated objective of BIAWX. From their website "The fund seeks long-term capital appreciation by investing in the common stock of mid- and large-cap companies that, in the manager’s view, effectively implement sustainable business strategies to drive their prospects for future earnings growth."
As David has mentioned, they just impress me as thoughtful and prudent advisors.
Brown Advisory
I forgot to mention that I only wish it was available NTF at Fidelity. However since it currently isn't that requires me to be thoughtful and prudent as well.
Alternatively, if you invested $20K in BIAWX and hold for a year, you would recoup the $49.95 transaction fee (vs. BAWAX). Going forward, you would pay lower expenses than buying the fund NTF. You could add to the fund for $5/buy.
Check it out, Derf
Apologies for taking this thread from its original destination.
Mona
Here's the key: fast-growing funds are always more tax-efficient than others because the tax cost gets spread out over more and more investors. So the fund might do something taxable in March but, by 12/31, there are a lot more people to share the cost so the average burden drops.
The sting comes when asset growth ends or reverses, sometimes because the fund closed to new investors. I have no particular reservation about the efficiency of BIAWX, just wanted to flag the unique circumstance that's making a good fund look even better.
Mona
poor heebner
Mona
23 stocks, or so
http://portfolios.morningstar.com/fund/holdings?t=CGMFX®ion=usa&culture=en-US
if I were still in it, and had only a few thou remaining or whatever, I would stick, just to see --- it ain't going to zero
I like concentrated funds, and one always hopes it will revert to a yacktman situation or similar
but he has sure screwed the pooch recently
I learned a few years ago that he and tillinghast live like a block or four apart, downtown, and I wondered if they ever met at the BPL or for coffee and eggs at a back bay eatery to chat