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I have decided after holding PAUIX since April-2012 and reinvesting all dividends, to sell it on Monday with a loss of about $1100. Anyone here disagree? The reasons I owned it was for downside support and Arnott's management. While I still believe it can perform well, I am adjusting my asset allocation raising cash for reallocation.
I think everyone has to come to their own decisions regarding either holding or selling Pimco All Asset and/or All Asset All Authority. I still have my position in PASAX. I am much disappointed with its performance this year when compared to the other funds that I hold within my hybrid income sleeve. The others being CAPAX, FKINX, ISFAX, PGBAX and AZNAX. I am currently looking for a replacement and if PASAX has not rebounded by yearend then I most likely will have replaced it as you plan to do. I have JNBAX and BAICX under review ... however, PASAX has had a good 90 day run at +4.4% which is much inline with the two that are under review at 5.43% and 4.83% respectively. Any thoughts on either of the two funds I have under review?
Hey ron...I feel your pain. One appraoch might be to identify a similar fund that more effectively executes its purpose for inclusion in your portfolio. To me, long term underperformance is harder to accept, especially when other funds in its category are achieving what you were hoping for.
PAUIX seems to have taken a large stake in shorting.
Here's an top performing tactical allocation fund...It's strategy is a fund of funds approach...and has a very comfrting ticker symbol...RELAX.
The thing is, you could probably purchase all of these funds for a lot less than the 1.79 ER of this single RELAXing fund. I do like the list...worth getting to know most on this list.
Like you, I respect him and Research Associates a lot.
But I seem to remember two broad cautions on the board previously, paraphrasing:
At the end of the day, despite all the multi-asset allocation talk, it is a bond fund...a fund-of-funds within the PIMCO house.
Mr. Arnott stubbornly follows his analysis and not the market. His analysis says US equities should do poorly because of growing debt, deficit, and aging demographics; therefore, he (like many other top managers) have missed much of the current US equity bull run.
I'm reluctant to give a recommendation, cause like Old_Skeet says...you need to be comfortable with the decisions on what to own or not.
But this much is easy to say...if the US equity market heads south, Mr. Arnott will (once again) be looking awfully smart (as long as bonds don't head south with them).
If you bought this for downside protection, why sell it after 18 months when there has been NO downside to the U.S. market? The goal of Mr. Arnott with this fund is to beat inflation by 6% over a full market cycle. It has done that so far. Yes, I would like it to do better in the current market environment, too. But I did not hire Mr. Arnott to top the charts in a bull market. An option for shareholders in taxable accounts might be to sell the fund now to capture any loss for 2013, then buy it back after the first of the year.
Reply to @BobC: I think the large positions in fixed income and all with Pimco were a distraction to me in his performance. I am not usually short on patience but will be 80 in a few months and just needed more of the total return bond style. I also still have alot of PIMIX. And yes, I have no problem owning it again.
Don't own this fund. It's fun to beat up on the big guys. And I'm as guilty as any. But, PIMCO's a pretty good shop - and I suspect the whims of the markets here have more to do with the fund's near term showing than does Mr. Arnott's stewardship.
Here's a link to another Arnott fund, PAUDX, that elicited a lot of comments last summer: http://www.mutualfundobserver.com/discussions-3/#/discussion/comment/27769. Sorry - at first I assumed these were same fund, but they're not. One tracker shows (your) PAUIX to consist of about 75% bonds and 25% "other." Should some of that "other" be in PMs or commodities, it would help explain the poor performance. It's also likely that some of that 75% bond holding is via foreign currencies - which have been hit hard this year. Personally, I've long held a small stake in both a commodities fund and an international bond fund - which I view as a "leg-up" on possible runaway inflation. So the dismal performance of both of those this year doesn't concern me. Comes with the territory.
Reply to @hank: Hank, they are the same fund: I class PAUIX vs. D class PAUDX - also see both shown here.
The portfolio info at the Pimco site is the most reliable and up-to-date. RA cut back on the "inflation" strategy earlier; the big drivers of the poor returns this year seem to be the near perma-short on U.S. stocks and his big stake in EM bonds and currencies.
Reply to @AndyJ: Thanks Andy. Appreciate knowing that. I guess the big bond stake is maybe reflecting the short positions. It's hard to consistently short markets.
Since, I think, we are into non-sequiturs, I wanted to get these in somewhere (courtesy of Oscar W.) There is only one class in the community that thinks more about money than the rich, and that is the poor. The poor can think of nothing else. (Is that us?) (Is that we? is just too too) When I was young I thought that money was the most important thing in life; now that I am old I know that it is.
Comments
I think everyone has to come to their own decisions regarding either holding or selling Pimco All Asset and/or All Asset All Authority. I still have my position in PASAX. I am much disappointed with its performance this year when compared to the other funds that I hold within my hybrid income sleeve. The others being CAPAX, FKINX, ISFAX, PGBAX and AZNAX. I am currently looking for a replacement and if PASAX has not rebounded by yearend then I most likely will have replaced it as you plan to do. I have JNBAX and BAICX under review ... however, PASAX has had a good 90 day run at +4.4% which is much inline with the two that are under review at 5.43% and 4.83% respectively. Any thoughts on either of the two funds I have under review?
Old_Skeet
PAUIX seems to have taken a large stake in shorting.
Here's an top performing tactical allocation fund...It's strategy is a fund of funds approach...and has a very comfrting ticker symbol...RELAX.
The thing is, you could probably purchase all of these funds for a lot less than the 1.79 ER of this single RELAXing fund. I do like the list...worth getting to know most on this list.
Here are its top 25 holdings:
http://www.mutualfundobserver.com/2013/09/fundx-upgrader-fund-fundx-september-2013/
We did a commentary on Mr. Arnott back in May:
http://www.mutualfundobserver.com/2013/05/may-1-2013/
Like you, I respect him and Research Associates a lot.
But I seem to remember two broad cautions on the board previously, paraphrasing:
At the end of the day, despite all the multi-asset allocation talk, it is a bond fund...a fund-of-funds within the PIMCO house.
Mr. Arnott stubbornly follows his analysis and not the market. His analysis says US equities should do poorly because of growing debt, deficit, and aging demographics; therefore, he (like many other top managers) have missed much of the current US equity bull run.
I'm reluctant to give a recommendation, cause like Old_Skeet says...you need to be comfortable with the decisions on what to own or not.
But this much is easy to say...if the US equity market heads south, Mr. Arnott will (once again) be looking awfully smart (as long as bonds don't head south with them).
Here's a link to another Arnott fund, PAUDX, that elicited a lot of comments last summer: http://www.mutualfundobserver.com/discussions-3/#/discussion/comment/27769. Sorry - at first I assumed these were same fund, but they're not. One tracker shows (your) PAUIX to consist of about 75% bonds and 25% "other." Should some of that "other" be in PMs or commodities, it would help explain the poor performance. It's also likely that some of that 75% bond holding is via foreign currencies - which have been hit hard this year. Personally, I've long held a small stake in both a commodities fund and an international bond fund - which I view as a "leg-up" on possible runaway inflation. So the dismal performance of both of those this year doesn't concern me. Comes with the territory.
(portion deleted)
The portfolio info at the Pimco site is the most reliable and up-to-date. RA cut back on the "inflation" strategy earlier; the big drivers of the poor returns this year seem to be the near perma-short on U.S. stocks and his big stake in EM bonds and currencies.
There is only one class in the community that thinks more about money than the rich, and that is the poor. The poor can think of nothing else.
(Is that us?) (Is that we? is just too too)
When I was young I thought that money was the most important thing in life; now that I am old I know that it is.