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Riverpark Strategic Income (brokerage update attached)
Hello, I am a long time lurker and 1st time poster. Any feeling out there on how susceptible RSIVX would be to a rising interest rate environment? I have held RPHYX for a couple of years for supplemental cash and love it. It has held up well during the concerns of the Fed easing up on QE. Would RSIVX be closer to RPHYX or more of a traditional short or even intermediate bond fund. Thanks....
Dear psuche98: For your information, I'm linking David's October Commentary. Scroll down near the end to 'Launch Alert:' RiverPark Strategic Income (RSIVX RSIIX). Regards, Ted http://www.mutualfundobserver.com/2013/10/october-1-2013/
Funds are sometimes available before the website recognizes that fact. Scottrade's website half-recognizes the fund but won't yet process an order on it.
You know, I bought some PDRMX thinking it would be a "cash substitute". Of course entirely my fault. I've always been bond challenged. Mental block. I know how they work, but can't get past the BS.
RSIVX will have severe expectations from investors. Hope it meets it.
Reply to @willmatt72: Mr. Sherman would, I suspect, discourage that behavior. He's been pretty clear that RPHYX is a cash-management account but the new fund is not. His intention is to manage it very conservatively (that is, with an emphasis on capital preservation as a first priority) but thinks of it more as the "money you might need three to five years from now" fund.
Reply to @David_Snowball: Hi David - thanks for the clarification. In my case, a cash management account is money not needed for 3-5 years so RSIVX fits the bill.
Yes, I called last week and the fund profile didn't show up on the Fido website but the symbol was entered into their mainframe system. A Fidelity rep confirmed that I could place a trade for this fund and did so on Thursday.
So here's my good news. I was able to buy for $1000 !!! Fido always has a $2500 minimum. I'm thinking all databases in Fidelity not updated for this fund and it took the "default" of $1000 which is what Riverpark says the minimum investment is.
Reply to @VintageFreak: You slimeball! Taking advantage of Fido... next you'll be stealing food stamps from orphans and widows. Planning on running for the House anytime soon? You've got my vote!
Oh come on now, if Scottrade had it available I would have bought it for $1000 anyways. More importantly though, I think this almost completes my "Artisan" portfolio. I'll be buying a little more of the fund periodically, then look for that special "value" fund to balance out a growthy portfolio.
Reply to @VintageFreak: I'm mulling over a small nibble at Schwab- Charles (above) says they have it despite their "not available" note. Best of luck on your purchase!
The Schwab site now shows RSIIX as "available", but with a $76 transaction fee. On a $1000 purchase that amounts to a 7.6% front load. If I were making, say, a $20000 purchase this would not be an issue, but this makes a gradual series of small purchases impossibly expensive.
Reply to @Old_Joe: OJ, doesn't Schwab have a DCA purchase option? Fido is $5 a shot and Vanguard is $3 after the initial buy-in; hard to imagine Schwab wouldn't have something similar (?).
Keep talkin guys:-) Dodge & Cox likes Charles Schwab a lot. They've been adding to a substantial position. They think it's a well run outfit. They also think it and many fund houses have suffered lately due to having to waive fees on money market funds. So, they expect Schwab to do better as interest rates rise and fees are no longer waived. Suspect there may also be an underlying theme (which they don't mention) that Mom & Pop investor are returning to the markets. Maybe all this is bullish for equities (but bearish for bonds)?
So I'm curious, actually curious, not being snarky at all here, about why there's a rush to get into a brand new fund that hasn't yet reported a portfolio or published a single commentary.
Is it primarily the success of the other fund, with its different investment universe, or do these guys have a track record somewhere else with the strategic income approach they're going to employ in the new fund? I understand from David's writeup that David Sherman had experience in what sounds like roughly the same kind of strategy at Leucadia, but no track record is mentioned.
Shooting for 6-8% with low volatility in a very low-return world sounds great, and I like the sound of the strategy, but it's not exactly intuitive how that can work out, so as usual for me I'd prefer to see at least initially what happens when the fund is actually up and running.
So I'm just curious what people commenting here see that would make them invest early in the new fund.
Reply to @AndyJ: Good question! In my case, it's a combination of satisfaction with RHYPX plus maybe filling in an area that I presently have no exposure to. As a result of a possibly unwise move to cash back in May and June (I was worried about the stuff that's happening right now) I have a need to move into something which will actually generate a bit of income, and I'm still leery of regular bond funds.
Reply to @Old_Joe: Thanks, Joe. That's a POV I can relate to.
RSIVX sounds to me like it could be an expanded opportunity-set version of OSTIX (short junk and convertibles), which in the past has been a 6-8% kind of fund (5 yr return right at 8%), but it's slipped to where it probably won't make 6% this calendar year. Pimco's straight short junk etf HYS is on course to make 6%, with a standard deviation of ~ 2.0.
So in theory the Riverpark objective sounds at least halfway reasonable, but I'd like to see (a) how they do initially; and (b) what the portfolio looks like. I guess I want to see what it can do beyond OSTIX and HYS, which I've plunked a chunk of change into over the course of the year. Short junk is by far the #1 asset class in this house's portfolio at this point.
Reply to @AndyJ: Thanks for the suggestion. From an email that they sent in response:
Schwab's Automatic Investment Plan (AIP) allows you to invest a fixed dollar amount at regular intervals in an eligible mutual fund. It is a free service that serves as a dollar-cost averaging program. If you would like to set up AIP for an eligible fund that you do not already own, you must first make the minimum initial investment in that fund. After enrolling the fund in AIP, your trading instructions will be carried out automatically.
AIP trades can be set up to occur on the following dates:
- Monthly on the 5th day of the month - Monthly on the 20th day of the month - Semi-Monthly on the 5th and 20th days of the month - Quarterly on the 5th day of the month - Quarterly on the 20th day of the month
Reply to @AndyJ: Well, yes for the additional amounts- but they still nick you for the $76 on the setup, as I'm reading it. But that's just for those funds that aren't NTF to start with, and they do offer a great range of NTF funds.
Comments
Regards,
Ted
http://www.mutualfundobserver.com/2013/10/october-1-2013/
RiverPark Website: http://www.riverparkfunds.com/downloads/FactSheet/RiverPark_Strategic-Income-Fund_Fact-Sheet.pdf
If things are clear Monday, I'll share the word.
RSIVX will have severe expectations from investors. Hope it meets it.
David
Buy order at Fido is in. And I'll tell you the best part about it tomorrow, rather than jinx it.
PS: Nice work!
Joe
Link to DODGX Semi-Annual Report (June 30, 2013).
https://www.dodgeandcox.com/pdf/shareholder_reports/dc_stock_annual_report.pdf
Is it primarily the success of the other fund, with its different investment universe, or do these guys have a track record somewhere else with the strategic income approach they're going to employ in the new fund? I understand from David's writeup that David Sherman had experience in what sounds like roughly the same kind of strategy at Leucadia, but no track record is mentioned.
Shooting for 6-8% with low volatility in a very low-return world sounds great, and I like the sound of the strategy, but it's not exactly intuitive how that can work out, so as usual for me I'd prefer to see at least initially what happens when the fund is actually up and running.
So I'm just curious what people commenting here see that would make them invest early in the new fund.
RSIVX sounds to me like it could be an expanded opportunity-set version of OSTIX (short junk and convertibles), which in the past has been a 6-8% kind of fund (5 yr return right at 8%), but it's slipped to where it probably won't make 6% this calendar year. Pimco's straight short junk etf HYS is on course to make 6%, with a standard deviation of ~ 2.0.
So in theory the Riverpark objective sounds at least halfway reasonable, but I'd like to see (a) how they do initially; and (b) what the portfolio looks like. I guess I want to see what it can do beyond OSTIX and HYS, which I've plunked a chunk of change into over the course of the year. Short junk is by far the #1 asset class in this house's portfolio at this point.