What Are Your Favorite Fixed Income Investments? @JC, is it not that their principles are more or less 'go anywhere' / opportunistic?
On first glance these funds look very similar. I went to the prospectus of each fund.
There are a few details like the allocation percentages that are different. The issue with comparing these funds is that they are like oil on water.
RSIVX is currently holding a lot of corporate instruments.
https://fundresearch.fidelity.com/mutual-funds/composition/76882K751?type=o-NavBar PONDX is spread out over the spectrum.
https://fundresearch.fidelity.com/mutual-funds/composition/72201F458?type=o-NavBarPimco is well known for buying derivative instruments which would increase volatility.
The category "Multisector Bond" is general. But, I am splitting hairs here. Yes it could be said that these funds are similar. The background heritage and investing style of the fund companies themselves might be the biggest difference here and one that should be noted as I did with the derivatives issue.
Hi John,
1. "
On first glance these funds look very similar" - Not to me, but I can see why to some.
2. "There are a few details like the allocation percentages that are different.
The issue with comparing these funds is that they are like oil on water".
3. Why is comparing these funds "like water on oil"?
A. The allocation percentages are very different
and always have been.
B. "RSVIX is currently holding a lot of corporate instruments
(and historically has)"
C. "PONDX is spread out over the spectrum
(and always has been)"
D. "Pimco is well known for buying derivative instruments which would increase volatility
(and always has been)"
So based on your description, what does
RSIVX and PONDX have in common?
Morningstar incorrectly categorizes both as Mulisector Bond Funds. All one needs to do is read the prospectus of each, as you have done, to conclude
"The issue with comparing these funds is that they are like oil on water"Best Regards,
Mona
What Are Your Favorite Fixed Income Investments? @JC, is it not that their principles are more or less 'go anywhere' / opportunistic?
On first glance these funds look very similar. I went to the prospectus of each fund.
There are a few details like the allocation percentages that are different. The issue with comparing these funds is that they are like oil on water.
RSIVX is currently holding a lot of corporate instruments.
https://fundresearch.fidelity.com/mutual-funds/composition/76882K751?type=o-NavBar PONDX is spread out over the spectrum.
https://fundresearch.fidelity.com/mutual-funds/composition/72201F458?type=o-NavBarPimco is well known for buying derivative instruments which would increase volatility.
The category "Multisector Bond" is general. But, I am splitting hairs here. Yes it could be said that these funds are similar. The background heritage and investing style of the fund companies themselves might be the biggest difference here and one that should be noted as I did with the derivatives issue.
What Are Your Favorite Fixed Income Investments? @Mona:
>> comparison between
RSIVX with PONDX is useless. They are two different animals. If you want to compare
RSIVX with another primarily high yield fund ....
Gosh, you'd better tell M*, which categorizes them identically and also benchmarks them identically --- and not high yield.
What Are Your Favorite Fixed Income Investments? After just now reading DS, I am looking at RSIVX and comparing it with PONDX and PDI. DODIX looks good recently too. Thoughts about those?
A comparison between
RSIVX with PONDX is [probably not productive]. They are two different animals. If you want to compare
RSIVX with another primarily high yield fund, use OSTIX
What Are Your Favorite Fixed Income Investments? After just now reading DS, I am looking at RSIVX and comparing it with PONDX and PDI. DODIX looks good recently too. Thoughts about those?
RiverPark Strategic Income Fund (RSIVX) 4th Quarter Letter Thanks, Mike. Frankly, I'd forgotten it is once again time to start looking for these reports. As a holder who continues to build position in RSIVX, I was pleasantly surprised to see that this fund does have the ability to play some pretty good defense (as demonstrated in 2H2014), without compromising yield.
For those not invested with Sherman, but who are paying increasing attention to HY debt re. oil and gas credits, there may be some material here that would hold your interest. Several pages are devoted exclusively to this topic, and it is used as the core topic around which a broader discussion of HY credits and RSIVX investments is elaborated.
RiverPark Strategic Income Fund (RSIVX) 4th Quarter Letter
Open Thread: What Are You Buying/Selling/Pondering Last week I sold out my EVBAX shares and split the proceeds between RSIVX and ARTFX.
RSIVX vs ICMUX (short term high yield) Here is an update about the recent performance of ICMUX. Per M*, its performance since 8/31/14 and the performance of some other funds mentioned in this thread are as follows:
ICMUX: -4.4%
RPHYX: +0.3%
RSIVX: -0.8%
DLINX: -0.6%
M* High Yield Bond Index: -4.4%
Per M*, ICMUX has an effective duration of only 1.19 years and has 34% allocated to cash. But, its loss since 8/31/14 is as great at M*'s high yield bond index!
Looking at their holdings, there is a substantial allocation to the energy sector including the top two holdings. This probably explains the size of the loss.
Perhaps this fund will rebound quickly and demonstrate the difference between volatility and risk. Allocating some of their cash at the right time could help.
But, recent performance suggests ICMUX is a market cycle fund and not a fund for someone looking for a smooth ride and an easy exit if the need might arise to sell shares in a relatively short period of time.