MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Columbia Thermostat CTFAX, redux

David_Snowball
in Fund Discussions
I was reading the thread on Thermostat, which prompted me to peer at its risk-adjusted returns. Interesting. Of all funds and ETFs - equity, allocation and income together - only CTFAX makes it as a top 10 fund for the past three, five and 10-year periods. I was a bit skeptical because the discipline was revised three years ago to allow greater latitude in equity exposure. Nonetheless it remains locked-in to a top 10 Sharpe ratio. 8.7% raw returns over the decade, 16.9% over the past three years.

If Morningstar's to be trusted, the fund has hit its minimum permissible equity exposure (10%).

Fascinating and just enough to give one slight pause.

Cheers!

David

Comments

  • carew388carew388
    They've had at least 3 different equity exposure rules since I've owned the fund. I hold it in all 3 of my Fidelity accounts since it seems like a prudent alternative to earning 1 basis point in a MMA.
  • MikeMMikeM
    edited January 2022
    Seems to be playing out that the important concept for this fund strategy is the valuation-equity exposure concept that is most important to returns more than the actual % equity exposure itself. I guess 'buy low' 'sell high' seems to work! Who knew:)

    I'm using this fund as 1 of 3 alternative type funds, but I do wish the equity exposure range was more like 20:80 or 30:70 instead of 10:90 but again, it is the valuation concept I like. My saving grace in owning CTFAX (at 90% income) is I don't own any pure bond funds in my self managed portfolio anymore. I'm using these alternatives as, well... alternatives. Fingers crossed.
  • Derf
    If I may question, what are the other two funds in alternative? @MikeM
    Enjoy your day, Derf
  • MikeMMikeM
    Hi Derf. CTFAX, TMSRX, JHQAX. 8-10% each is the goal. Just about there.
  • Derf
    Thanks for your reply @MikeM . I also own the other two that you mentioned. TMSRX is in the hot seat & I'll be keeping a close eye on. I'm wondering if incoming cash caused them some problems ? I will be looking to add to JHQAX & possibly add starter position in CTFAX.
    Enjoy the ride, Derf
Sign In or Register to comment.