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I was looking at PTIAX, too @Maurice. I think it was @hank who replied to me and said it was not a bad choice. Others have mentioned that it's loaded with munis, and so it has yet to be seen if the fund can weather some not so wonderful conditions in the future. I can't remember the whole of it. And I intend to be buying into it soon, though not right away. Your own observations occurred to me, as well.
@Maurice- try typing "PTIAX" in the "Search" box at the top-right of the page and it will pull up recent postings re the fund. There's a comment there (June 19) by BobC re the duration, which he feels is too long for his taste.
BTW, I've found that using the search function in this way to pull up specific fund-related info can be very useful. I have a small position in PTIAX at the moment.
PTIAX largest sector allocation as of 3/31 was non agency RMBS. I would wager they have increased there since that time. From a link I posted elsewhere PIMCO is buying everything they can there as it offers the best yield and fundamentals in Bondland. Jeffrey Gunlach's DBSCX is all in that sector but not available to the public.
@ron "PONAX is simply a higher expense fund with a lower return than PIMIX." That is very true, but PIMIX isn't available on Morgan Stanley's Platform, so I own PONCX. Regards, Ted
PTIAX vs PONDX, from August, 31, 2010 ( PTIAX inception) to date which includes distributions for total return for the time period.
PONDX = 74.5% PTIAX = 47.8%
Moving through time periods of the chart finds there were periods when either fund slightly outperformed the other; but the total return for the period tells the story, yes?
I double checked the performance math against M* and indicates correct.
I have not reviewed IOFIX magic sauce, although it appears they use "special tools", too. Disappointed that the web site for the fund has not been updated for 1 year. Suppose the folks are too busy running the algo's.
Added: Relative to 14 day RSI (Relative Strength Index) with 70 being the edge of "too hot" and 30 being the "everyone has sold" (value), IOFIX has been at about 97 since day one, with a small down blip of a few points.
I bought into PTIAX almost 2 years ago when muni's were hot. I don't believe that will be the case moving forward. I did see where management still believes muni's are a good place to be going forward (apparently still at a high percentage), fwiw. I decided about 4 months ago I only needed 1 good multi sector bond fund so I sold PTIAX and put it into PONDX. You can't ignore the nose on your face. PONDX has been a better fund, and until it proves otherwise, that is my choice.
I double checked the performance math against M* and indicates correct.
I have not reviewed IOFIX magic sauce, although it appears they use "special tools", too. Disappointed that the web site for the fund has not been updated for 1 year. Suppose the folks are too busy running the algo's.
Take care, Catch
Thanks Mark "catch22" no special sauce/derivatives/leverage just non agency RMBS. One of the fund managers (Brian Loo) gave me a long tutorial on the niche they operate in. The link below is a current fact sheet from the company. Hopefully few here will rush out and buy because of its high expense ratio and the toxic assets they specialize in. The last thing I want is for this to become a "groupthink" fund because then the party may be over. Anyway I mentioned this back in March so why buy it now? Hopefully some of the bond cognoscente here can steer everyone away from this fund - just as they would have done at the beginning of the year.
I see that PONDX looks terrific. What might people advise me, then, if my chief consideration is for monthly dividend income? PONDX pays .05 cents, PTIAX pays .10 cents to .11 cents. ??? Thanks for thoughts...
Hi guys! While I own PONDX and PTIAX. Also, look at GIBLX. While it's not in the top 2 here, if you play the trifecta, it's what you call a place horse, i.e., win, show, place. It's 3rd, but I like it. God bless the Pudd
@Junkster I did look through a few of the company holdings in their portfolio. From my limited knowledge of the holding types, that they are an "edger" sector of loan types relative to the mortgage area. 'Course, although these investment areas may be foreign to me, I know they exist in other portfolios, too. As long as this fund or to the point of various holdings of PONDX or similar funds are well understood by managers, and structured as needed within a portfolio to keep returns happy; I can not bitch, nor complain about a given E.R. for over and above performance. Thank you for your time with this and the fund link. Regards, Catch
I have used the trifecta system in my portfolio for years since the mid 80's. Years back I bet the dogs and found my winnings were much greater at the track betting on three dogs to win, place or show over just betting one or two dogs to win per race. Over time the track gave me special seating in the track's club area. And, even today I still use it within my investment sleeve management system with no less than three funds per sleeve. However, sleeves can hold up to nine funds if they are champion of champions type funds ... in this way, I'm betting on the whole pack as there are really no loosers found here.
Seems, you also have found and are a believer in the win, place, show strategy too. For me, the strategy has worked well through the years. However, know that there are others that will argue it different. But, it has put me net positive at the track and with my investment system as well.
I'll be in the Daytona area vsiting a high school buddy (who is a retireed engineer by profession and that is also an investment indexer of sorts) for part of July ... not for the NASCAR race ... but, for the dog track. My buddy moves between a 60/40 to 40/60 stock vs. bond allocation using index funds as to how he is reading the markets. At times, his portfolio leads over mine and at times I lead. So, there you have it both systems work as we both wear smiles on our face. If you would like to study a fund that uses much the same investment strategy as he does the ticker symbol is SFAAX.
You asked: "What might people advise me, then, if my chief consideration is for monthly dividend income? PONDX pays .05 cents, PTIAX pays .10 cents to .11 cents."
>>>The question is: Is the monthly dividend income something you want now or are these monies inside an IRA from which you do not currently have any distribution to you? Lastly, for the 2 funds in question; these are the current 30 day SEC yields: PONDX = 3.91% PTIAX = 5.38% Both of these yields are subject to change, yes? ***30 day SEC yield calculation method
The monetary performance value of the 2 funds here, from my previous post beginning at Aug. 31, 2010 for $3,000 invested is:
PTIAX becomes $4,434 PONDX becomes $5,235
The above $ numbers are reinvestment of all distributions and price appreciation.
Hi, guys. Yes, understood. When I actually DO buy-into PTIAX, it will be in a regular, taxable account, and at that time, I will have turned a corner, starting to take dividends and other pay-outs in cash for expenses, rather than re-investing it all--- which I'm currently doing. I'm still going to hold a good chunk in stocks to fight inflation and for growth. Once again, current holdings: MAPOX, MSCFX, PNM (single stock,) SFGIX, PRWCX, PREMX, PRSNX, PRIDX, PRDSX, and wife's 403b in VSCIX. Thanks!
I like what I see in IOFIX, but I am not a bond expert. They say: Weighted Avg. Life: 13.4yrs, Weighted Avg. Effective Duration: 1.8yrs. Can you help me to understand what does it imply for the INTEREST RATE SENSITIVITY? As far as I understand, interest rate sensitivity is determined by Weighted Avg. Effective Duration: 1.8yrs, so it may be risky if they are wrong with respect to securitized debt, but they are safe with respect to the Fed. Is it their "magic sauce"? Is it similar in this respect to what ensures magic stability of RPHIX?
Schwab.com shows PIMIX with a portfolio breakdown consisting of 151% bondholdings, meaning it is highly leveraged, and PONAX is the same. With this much leverage these funds are too risky for this retiree. IOFIX appears to be nearly all securitized debt, which I believe basically means mortgages, again too risky for me. With the debt market at an all time high I plan to stick with treasuries, CDs and cash for now rather than stretching for yield.
It is really simple for me to understand. Risk free 10-20 year treasuries and CDs are paying about 3%. Given how efficient the fixed income markets are, any fund paying much more than this is taking on some kind of risk of loss of principal, whether it is interest rate risk, credit risk, or other.
I don't want to take a lot of risk of loss of principal with my fixed income holdings (I will take the risk with equities which have a much greater chance of substantial gain). In my situation as a retiree and considering that fixed income yields are at all time lows I don't think it is prudent for me to own any fixed income paying more than a few percent at this time.
Comments
BTW, I've found that using the search function in this way to pull up specific fund-related info can be very useful. I have a small position in PTIAX at the moment.
Regards,
Ted
Regards,
Ted
Regards,
Ted
PTIAX vs PONDX, from August, 31, 2010 ( PTIAX inception) to date which includes distributions for total return for the time period.
PONDX = 74.5%
PTIAX = 47.8%
Moving through time periods of the chart finds there were periods when either fund slightly outperformed the other; but the total return for the period tells the story, yes?
http://stockcharts.com/freecharts/perf.php?PTIAX,PONDX&n=1713&O=011000
Regards,
Catch
Yowie, eh?
IOFIX = +29.9%
PIMIX = +13.4%
http://stockcharts.com/freecharts/perf.php?PIMIX,IOFIX&n=521&O=011000
I double checked the performance math against M* and indicates correct.
I have not reviewed IOFIX magic sauce, although it appears they use "special tools", too.
Disappointed that the web site for the fund has not been updated for 1 year. Suppose the folks are too busy running the algo's.
Added: Relative to 14 day RSI (Relative Strength Index) with 70 being the edge of "too hot" and 30 being the "everyone has sold" (value), IOFIX has been at about 97 since day one, with a small down blip of a few points.
Take care,
Catch
http://alphacentricfunds.com/funds/IncomeOpp/FactSheet.pdf
While I own PONDX and PTIAX. Also, look at GIBLX. While it's not in the top 2 here, if you play the trifecta, it's what you call a place horse, i.e., win, show, place. It's 3rd, but I like it.
God bless
the Pudd
I did look through a few of the company holdings in their portfolio. From my limited knowledge of the holding types, that they are an "edger" sector of loan types relative to the mortgage area. 'Course, although these investment areas may be foreign to me, I know they exist in other portfolios, too. As long as this fund or to the point of various holdings of PONDX or similar funds are well understood by managers, and structured as needed within a portfolio to keep returns happy; I can not bitch, nor complain about a given E.R. for over and above performance.
Thank you for your time with this and the fund link.
Regards,
Catch
I have used the trifecta system in my portfolio for years since the mid 80's. Years back I bet the dogs and found my winnings were much greater at the track betting on three dogs to win, place or show over just betting one or two dogs to win per race. Over time the track gave me special seating in the track's club area. And, even today I still use it within my investment sleeve management system with no less than three funds per sleeve. However, sleeves can hold up to nine funds if they are champion of champions type funds ... in this way, I'm betting on the whole pack as there are really no loosers found here.
Seems, you also have found and are a believer in the win, place, show strategy too. For me, the strategy has worked well through the years. However, know that there are others that will argue it different. But, it has put me net positive at the track and with my investment system as well.
I'll be in the Daytona area vsiting a high school buddy (who is a retireed engineer by profession and that is also an investment indexer of sorts) for part of July ... not for the NASCAR race ... but, for the dog track. My buddy moves between a 60/40 to 40/60 stock vs. bond allocation using index funds as to how he is reading the markets. At times, his portfolio leads over mine and at times I lead. So, there you have it both systems work as we both wear smiles on our face. If you would like to study a fund that uses much the same investment strategy as he does the ticker symbol is SFAAX.
Best regards,
Skeet
You asked: "What might people advise me, then, if my chief consideration is for monthly dividend income? PONDX pays .05 cents, PTIAX pays .10 cents to .11 cents."
>>>The question is: Is the monthly dividend income something you want now or are these monies inside an IRA from which you do not currently have any distribution to you?
Lastly, for the 2 funds in question; these are the current 30 day SEC yields:
PONDX = 3.91%
PTIAX = 5.38%
Both of these yields are subject to change, yes?
***30 day SEC yield calculation method
The monetary performance value of the 2 funds here, from my previous post beginning at Aug. 31, 2010 for $3,000 invested is:
PTIAX becomes $4,434
PONDX becomes $5,235
The above $ numbers are reinvestment of all distributions and price appreciation.
Regards,
Catch
You may not be understanding it correctly. Not that I am capable of clarifying. Note risk rating in M*, also in MFO (and UI as well).
However, a sound decision probably if your taste is for treasuries and CDs and cash.
I don't want to take a lot of risk of loss of principal with my fixed income holdings (I will take the risk with equities which have a much greater chance of substantial gain). In my situation as a retiree and considering that fixed income yields are at all time lows I don't think it is prudent for me to own any fixed income paying more than a few percent at this time.