With 9% of my holdings being reported as “other,” I’m curious what all that includes.
Just guessing:
- Precious metals, real estate / timberland / farmland?
- Physical infrastructure - like buildings, toll roads, railroads, communications satellites?
- Positions in non-dollar denominated currencies thru the FX markets?
- Options to buy something?
Other ideas?
I think it’s significant in assessing risk because if these “other” assets are as risky (or riskier) than equities, than your portfolio might contain substantially more risk tied to the broader financial markets than a lower “equity” number might lead you to believe.
Comments
"Short term" is what M* calls "cash".
"Other" on the analysis page appears to be a combination of what M* calls "other" and "unknown".
On the per holding detail page ("learn more ..."), Fidelity's "other" is further decomposed into:
- "other" (what M* calls "other"), and
- "convertibles" and "preferreds" which M* seems to call "unknown".
By looking at the Fidelity analysis detail page you can see which holdings have "other" assets. They should match the M* "other" holdings.
In my case, I've only one holding where M* shows "other" (as opposed to "unknown"). There, M* says that "other" is comprised of "aggregate miscellaneous equity", whatever that means. This info comes from the "holdings" section at the bottom of the M* portfolio page for the fund. Click on "other".
Lotsa luck.
20% sounds about right if they’re including options held by the funds you note. I don’t own any funds that play overtly in the options markets. But, no doubt, some of them utilize them to a small degree. My 9% is (hopefully) reflecting real assets. Owning GLFOX there may be some infrastructure holding being counted. Just ages.
“Other-The "Other" category includes non-asset class holdings (i.e., other than stocks, bonds, and short-term investments), including, without limitation, derivative securities, options, preferreds, convertibles, warrants, and precious metals, as well as some Internal Revenue Code Section 529 qualified tuition program (529 plan) investment trust holdings.”
“Other Holdings-Any interest held in a selected account that cannot be placed within one of the following categories: Equity, Fixed Income, Cash, Mutual Fund, or Exchange Traded Product (ETP).”
My attempt to sort these components out on a specific fund basis was unsuccessful.
Added - Follow-up Ques:
* Can we assume that if your fund invests in commodities or real estate it is likely doing so through derivatives and so those investments would be included under Fidelity’s “other” classification?