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In terms of PSILX, maybe RPGAX from the same manager, which is a global allocation fund that can venture into global bonds and stocks, as well as devote 10% to private/alternative investments, such as hedge funds (the largest position is actually a hedge fund from Blackstone.)
In terms of TRIGX, I don't see anything particularly compelling.
Thanks, both of you. PRWCX indeed looks like a top-drawer offering, but with a bit too much risk for my liking. I also looked at its current portfolio, and it's about 25% in domestic bonds. I think I'm carrying sufficient domestic bonds via the balanced fund, MAPOX (donuts tonight!) and my Gundlach fund, DLFNX. I appreciate your thoughts. Anything further, in response to this particular follow-up message? Anyone?
I'm looking at TRP in particular because I'm already there, and can very easily and simply reallocate. I'm considering taking end-of-year profits from TRAMX and starting a holding in a different TRP fund. At this moment, it may well be the one Ted suggested. But there's a huge pile of stuff other people know about that I'd be interested to hear. ...If I can find nothing terribly compelling, after thinking and chewing on this prospect for several more weeks, I will just simply let my two TRP funds keep running: PREMX (severely overweight in that one) and TRAMX (3% of entire portfolio, good profits since late August of 2012.)
Reply to @MaxBialystock: Any thoughts in regards to moving to a Fidelity/similar so that you can have a huge range of funds to choose from and easier to move from fund-to-fund versus trying to deal with a lot of separate fund companies?
Ya, well.....That's on hold for a while after my first attempt was an abortion. I couldn't get straight answers from the fellow who turned out to be my first official phone contact. Fido's closest is not VERY far away. I'm surprised I don't see my city listed, but they do show up in the Hartford suburbs. About 45 minutes. But not now, not yet.
Reply to @MaxBialystock: I'm a little confused. It sounds like you buy TRP funds individually(?) Why wouldn't you just open a brokerage account with them. You would have thousands of funds available to you - not just TRP funds. Really no different then going to Fidelity and opening an account there. Probably easier since you already have TRP funds.
My 401k is a brokerage account with TRP. I'm very happy with them.
Reply to @MikeM: Thanks, MikeM. Yes, I own funds as an individual retail investor with the various several fund houses I'm invested with. I hear "brokerage" account and one word comes to mind: FEES. Even when there are NTF funds involved. I never figured TRP would offer funds to me from a DIFFERENT shop. Do they? I am done with 403b. Not working anymore, but not for lack of looking. So, I'm the house-husband. Wifey works full-time, now. My 403b is now in a rollover IRA with TRP.
Hi Max. Mike's point is well taken and ought to be considered. For some perspective (of a different vein) I'd say more is not always better. Presently, T. Rowe Price offers more than 90 no-load funds. Of these, 28 are equity, 28 fixed income, and the remainder allocation & target-date types. If you were to compliment this selection with direct holdings in just two other similarity respectable families, you'd probably have 200-300 funds to analyze and possibly invest in. (That's a lot more than I feel I've come to know well over the years).
Re TRIGX, I sometimes hold it when I want to diversify more widely in the International equity area. As the name implies, it tends toward large cap dividend paying companies around the world. Little if any U.S. - but some Canada and Mexico. At inception ('98) it had a few hot years. Kinda "average" past few. They've brought the ER down to a very competitive .87%. Generally, international isn't one of Price's stronger suites and. as both Scott and Ted have suggested, this fund fits that pattern. However, as a less-risky diversifier, I still like it. It might nicely complement your international exposure in EM and growth funds. Note, the manager Jonathan Matthews has only been there 3 years. That would give me a little pause - but I consider it less worrisome with this house, as their bench appears quite deep and they seem to use more of a team approach anyway. FWIW
And, yes to your other question. With a T Rowe Price Brokerage account, you would be able to buy both theirs and funds from many other families. A google search will turn up many details. Regards
...I just did some looking, re: a TRP Brokerage account: "$9.95 per trade for accounts with more than 30 executed trades in the prior 12 months."
...I do not at all ever anticipate doing that much trading. So each transaction is $19.95, instead. Nope. Thanks, but no thanks. My current portfolio is not very far into 6 figure territory, as it is. But I appreciate your kindness, all of you.
Reply to @MaxBialystock: Here is a link to "Gateway", a TRP page that shows fund families and funds available through their brokerage. Actually, though I haven't counted, there is probably ~90 fund families, and hundreds if not over a thousand funds.I have even found that you can purchase funds that aren't listed in this directory. Many non-TRP funds are NTF. I know the Mathew funds I own ar NTF. It really is no different than a Fidelity account. Just a matter of choice. Fidelity is bigger, but TRP is not small by any means.
I won't dispute the logic of Mike's argument. It makes good sense. I'm just saying the path you (and many others) have chosen is not a bad one. There may be a number of personal factors entering into that decision. FWIW
Reply to @MaxBialystock: Missed the reference to PRWCX yesterday. Hmm... a lot of TRP funds under discussion here. Linked is PRWCX's June 30 Semi-Annual Report. You're on-target with the bond numbers, Max. However, manager says he's been avoiding longer duration bonds, having moved some into short duration and high yield recently. Further, he cites 3.5% on the 10-year Treasury as a point he'd consider longer bonds attractive enough to begin buying in any significant amount. In a word, the fund's approach may be described as "Oportunistic." (Unfortunately, this term wouldn't look very good in their promotional materials:-) Regarding risk, PRWCX is generally regarded as Price's least risky equity fund. TRIGX - which you are considering - will give you a much more volatile ride, but with potentially greater long-term returns.
Not trying to be cheerleader here for PRWCX. Traditionally, have held only a small 5-10% stake in it, although it's done very well for me the past 15 years. Actually have a slight preference for OAKBX in that segment, where my stake is larger (suspect most here would disagree). BTW ... despite this year's bond rout, both have more than held their own with very fine YTD returns, in spite of their often-maligned bond holdings. I think all of us (self included) tend to over-emphasize the bond holdings in these type funds when we see numbers like the 25% you cited. I think that for these fund managers (PRWCX & OAKBX) bonds play an important role in hedging against potential losses on some of their riskier equity bets. In other words, without the bond hedge, their equity returns wouldn't be as good. Hate to sound like Pollyanna, but do think they understand that complex relationship better than most of us.
Reply to @hank: Hi, Hank. Quoting you: " PRWCX is generally regarded as Price's least risky equity fund." ........But I see (at M*) Risk = above average, while returns are high.
On THAT basis, it seems a very decent trade-off re: risk/reward. But I can't imagine this is TRP's least risky equity fund. I have deliberately NOT gone beyond "average" risk according to M* in ANY fund I own--- though DLFNX lately got to be old enough to be rated, and it comes up with "above average" risk. (With "high" returns, but wouldn't you know--- I bought-in at the latest Market-top. I have never been able to strategically deploy spare cash. I received the latest traunch as an inheritance, and put it to work in the category I had not yet covered at all: domestic bonds.) thanks, man.
Reply to @MaxBialystock: Don't know what they're smoking over at M* Go to link posted below. If you don't see Price's colored risk-bar, click the "objective" tab and it will come up. Once you have the bar in view, clicking directly on it will bring up their view of how risky each of their various funds is in comparison with one another. I believe PRWCX at "moderate" is their least risky equity fund in their judgement.
Likely, M* is basing their risk rating on comparison with a specific peer group of funds they find similar. That's always tough for me to grasp, as no two funds are alike. I'd view their take as a good starting point, but not the whole story. As touched on in my earlier post, I do perceive Oakmark's Equity and Income Fund OAKBX as slightly less risky than this one - though the two are very similar and both excellent funds.
PRWCX has had at least three different managers over the past 10-15 years - all highly competent. On occasion, the fund has assumed just a bit more risk in equities than I might have liked. Still, it's posted phenomenal returns considering the moderate degree of risk taken. One knock is it has grown very big. As with any fund this will hamstring the manager somewhat. If it's a problem for them, it hasn't shown itself yet. As you probably know, virtually all fund prospectuses lay-out in graphic detail what their annual returns have been over past ten years. It pays to look at these. The cold shower we all took 5 years ago makes such results pretty revealing.
If putting brand new money to work, as long as you can let it sit for at least five years, PRWCX should treat you fine. Another option is to use one of their income-oriented funds, like TRRIX or RPSIX, as a starting position and then have them do an automatic monthly purchase into PRWCX or whatever other fund you choose. (I'm 90% certain they'd be willing to set up something like that for you.) Enjoy the hunt and take care.
Reply to @MaxBialystock: PRWCX probably is a little "riskier" than its M* comparison group, which is domestic moderate allocation funds, not equity only funds. For a comparison, the 10 year SD of PRWCX is 11.73, PRDGX is 13.71, PRFDX is 15.43, TRBCX is 16.18 and VFINX is 14.68. MAPOX comes in at 9.82. PRWCX tops all of those for returns over the past decade (and longer).
But while PRWCX can hold up to 25% foreign equities, it isn't an international equity fund like PSILX or TRIGX. PRWCX is far smoother than either of those funds, which have 10 year SDs above 19.
Comments
In terms of TRIGX, I don't see anything particularly compelling.
Regards,
Ted
http://quotes.morningstar.com/fund/f?t=PRWCX®ion=USA&culture=en-US
My 401k is a brokerage account with TRP. I'm very happy with them.
Re TRIGX, I sometimes hold it when I want to diversify more widely in the International equity area. As the name implies, it tends toward large cap dividend paying companies around the world. Little if any U.S. - but some Canada and Mexico. At inception ('98) it had a few hot years. Kinda "average" past few. They've brought the ER down to a very competitive .87%. Generally, international isn't one of Price's stronger suites and. as both Scott and Ted have suggested, this fund fits that pattern. However, as a less-risky diversifier, I still like it. It might nicely complement your international exposure in EM and growth funds. Note, the manager Jonathan Matthews has only been there 3 years. That would give me a little pause - but I consider it less worrisome with this house, as their bench appears quite deep and they seem to use more of a team approach anyway. FWIW
And, yes to your other question. With a T Rowe Price Brokerage account, you would be able to buy both theirs and funds from many other families. A google search will turn up many details. Regards
...I do not at all ever anticipate doing that much trading. So each transaction is $19.95, instead. Nope. Thanks, but no thanks. My current portfolio is not very far into 6 figure territory, as it is. But I appreciate your kindness, all of you.
http://individual.troweprice.com/public/Retail/Products-&-Services/Brokerage/Trading-Mutual-Funds/Mutual-Fund-Gateway
I won't dispute the logic of Mike's argument. It makes good sense. I'm just saying the path you (and many others) have chosen is not a bad one. There may be a number of personal factors entering into that decision. FWIW
Not trying to be cheerleader here for PRWCX. Traditionally, have held only a small 5-10% stake in it, although it's done very well for me the past 15 years. Actually have a slight preference for OAKBX in that segment, where my stake is larger (suspect most here would disagree). BTW ... despite this year's bond rout, both have more than held their own with very fine YTD returns, in spite of their often-maligned bond holdings. I think all of us (self included) tend to over-emphasize the bond holdings in these type funds when we see numbers like the 25% you cited. I think that for these fund managers (PRWCX & OAKBX) bonds play an important role in hedging against potential losses on some of their riskier equity bets. In other words, without the bond hedge, their equity returns wouldn't be as good. Hate to sound like Pollyanna, but do think they understand that complex relationship better than most of us.
http://individual.troweprice.com/gcFiles/pdf/srcaf.pdf
Quoting you: " PRWCX is generally regarded as Price's least risky equity fund."
........But I see (at M*) Risk = above average, while returns are high.
On THAT basis, it seems a very decent trade-off re: risk/reward. But I can't imagine this is TRP's least risky equity fund. I have deliberately NOT gone beyond "average" risk according to M* in ANY fund I own--- though DLFNX lately got to be old enough to be rated, and it comes up with "above average" risk. (With "high" returns, but wouldn't you know--- I bought-in at the latest Market-top. I have never been able to strategically deploy spare cash. I received the latest traunch as an inheritance, and put it to work in the category I had not yet covered at all: domestic bonds.) thanks, man.
http://www3.troweprice.com/fb2/fbkweb/objective.do?ticker=PRWCX
Likely, M* is basing their risk rating on comparison with a specific peer group of funds they find similar. That's always tough for me to grasp, as no two funds are alike. I'd view their take as a good starting point, but not the whole story. As touched on in my earlier post, I do perceive Oakmark's Equity and Income Fund OAKBX as slightly less risky than this one - though the two are very similar and both excellent funds.
PRWCX has had at least three different managers over the past 10-15 years - all highly competent. On occasion, the fund has assumed just a bit more risk in equities than I might have liked. Still, it's posted phenomenal returns considering the moderate degree of risk taken. One knock is it has grown very big. As with any fund this will hamstring the manager somewhat. If it's a problem for them, it hasn't shown itself yet. As you probably know, virtually all fund prospectuses lay-out in graphic detail what their annual returns have been over past ten years. It pays to look at these. The cold shower we all took 5 years ago makes such results pretty revealing.
If putting brand new money to work, as long as you can let it sit for at least five years, PRWCX should treat you fine. Another option is to use one of their income-oriented funds, like TRRIX or RPSIX, as a starting position and then have them do an automatic monthly purchase into PRWCX or whatever other fund you choose. (I'm 90% certain they'd be willing to set up something like that for you.) Enjoy the hunt and take care.
But while PRWCX can hold up to 25% foreign equities, it isn't an international equity fund like PSILX or TRIGX. PRWCX is far smoother than either of those funds, which have 10 year SDs above 19.