Hi, my name is Mike and i'm a fundaholic ; )
At the risk of flames, i'm venturing in here again and reposting a variation of a question in another
(first) post.
I originally came here in the process of doing 'due dilligence' about RSIVX - and similar funds - because
i am interested in adding it and maybe revising the allocation set up by my FA. I think the fixed-income
portion of my portfolio - which is higher than many feel it should be for age 55 - (approx. 60/40 bond-equity).
I am repasting the bond sleeve list below.
What i would really benefit from would be some help in mapping a hypothetical strategy for consolidating some
of the small positions - and taking out vulnerability NAV losses in the rising interest rate scenario. I see
RSIVX as a good candidate to serve as a more stable alternative to riskier funds/ETFs in the mix.
I realize this is subjective and i will build in the disclaimer myself that any thoughts or opinions here are not
presented as a 'directive' or 'endorsement.'
The list shows each position's percentage of my total Portfolio right now. My research so far suggests that out of these, I might consider replacing BTZ, and reducing or dropping TIPS ETF: SCHP , and possibly PGX.
BABS has had a nice run up and i could perhaps take some profit there.
I'm looking at these in particular based on interest-rate-sensitivity and longer-duration of holdings.
As mentioned the holdings in this mix were intended to serve as diversifiers and being low-expense,
my FA doesn't feel overall quantity is necessarily a problem.
All this said since i really am averse to bond mkt volatility which seems inevitable, I like RSIVX but am trying to
figure out how to 'deploy' it wisely in the context of my existing blend.
I did bring up a fund like RSIVX or OSTIX to my FA and he felt i'm already sort of accomplishing what RSIVX
is designed to do.
I wonder if others here would agree with that notion in looking at the specific holdings i have.
Thanks again!
Mike
14% Vanguard Short Term/VFSUX
8.9% Vanguard Interm-Term /VFIDX
(7.7% Cash)
3.9% SPDR Nuveen Barclays Build America Bond ETF(BABS)
3.5% Vanguard Short Term Bond VCSH (ETF)
3.3% Vanguard High-Yield Bond VWEHX
3.3% Blackrock Credit Allocation Income BTZ (ETF)
2.7% Vanguard TIPS VIPSX
3.2% Alliance Bernstein Income ETF (ACG)
2.8% RidgeWorth Seix Floating RT Hi Inc. SAMBX
2.2% Eaton Vance Short Duration DIversified EVF
1.9% Fidelity Floating Rate Hi Income FFRHX
1.8% Schwab TIPS ETF(SCHP)
1.7% PowerShares Preferred Stock PGX (ETF)
1.7% MS Emerging Mkts Debt MSD (ETF)
1.5% Nuveen Div.Advantage -(Muni Nat'l Long) NZF (ETF)
0.9% SPDR Barclays Cap Convertible Secs CWB

Well, I think you could get rid of all of those funds and consolidate into one or a couple of OSTIX, RSIVX, SUBYX, or one of the Metropolitan West funds (MWSIX, MWCIX), to name a few. Maybe keep one of the Vanguard short term funds, too. The kinds of strategic income funds that you're talking about would be picking and choosing from among all those income classes that you now hold separately. If you didn't want to go that way, I should think that you could consolidate into two or three index funds and pretty much get the same effect you're getting now at a lower cost.

Well, imagine if I'd included the equity holdings - the list would be another 10 lines!
I'm not surprised at your reactions though in my defense i can't 'take credit' for
the composition of this PF as it stands. Actually it is for the most part the work of my
hourly advisor friend who has pretty much overseen this - and expanded upon it since
i began working with him in early '09. He is a former fund manager and derives no
compensation from any of the fund recommendations - strictly an hourly arrangement where we revisit things a few times a year. I guess his overall viewpoint is that quantity of funds is not a major deal if the expense ratio is reasonably low across the board and each piece of the puzzle fulfills a specific role or purpose in serving the total diversification of the portfolio...
(yes i have raised the quantity of positions issue with him a few times and that's pretty much his take on that subject).
That said, we haven't seen stellar returns - but I haven't exactly green-lighted a moderate-to moderate-aggressive approach either. Rather, I've been more risk-averse than many at my age since the banking collapse period and was never able to fully recommit to a more ambitious/aggressive policy - so, to some extent, his hands were tied and he was inclined to make choices with my risk-aversion in mind. Where I could really use some help is in specific changes/consolidation ideas for the bond sleeve - and as i mention - look more at strategic income vehicles such as OSTIX or RSIVX type of funds - perhaps to replace multiple smaller bond fund/ETFs - and hopefully serve to achieve more efficient performance and some positive returns versus flat to under-performance for the next few years (?)
Thanks!

Hi, I have not yet followed up with details of my bond sleeve for some reviews here on a different thread but meantime am very intrigued by RSIVX - as what seems a worthwhile candidate to consider as a substitution for a long-held position in Vanguard Intermediate VFIDX - at least am considering reducing some portion of my roughly 10% of total PF in VFIDX - which from my reading of things, does not appear headed for greatness in the forseeable future and possibly vulnerable to NAV losses in the wake of higher interest rates. I am leaning toward a more tactical approach with bond funds/ETFs in general. I've reviewed OSTIX but i am leaning more toward RSIVX just based on liking what i've seen with the firm's other funds... and given some favorable reviews here as well. Question does arise - the expense/management fee, appears, at least - to be on the high side ... relative to most of my other funds (such as Vanguard) - and i'm wondering if i'm misunderstanding something about that - is it in fact a 1.25% annual fee - or is there some sort of waiver on that ? Any clarification appreciated.
I would be inclined to pare back on my VFIDX by roughly half with proceeds into this fund, but if the expense fee is excessive, it is a factor i have to consider - especially in the realm of bond vs equity funds.
Thanks!
Mike

It is one of the best bond funds out there. Board favorite (and mine) RSIVX seems rather similar and without the possible AUM problem. Another similar fund that few seem to recognize is from Diamond Hill: DHSTX. I believe the M* rating is a common problem for these funds.

Bought CELG (thank you GS for the downgrade!)
Initiated BDMIX
Added RSIVX, NABAX
Sold a bunch of smaller ETF positions. Needed to consolidate.

Pedestrian moves, but considering selling DODWX for either ARTGX or FPRAX as core "global value" fund (20-25%). Am concerned about Dodge AUM at this point, but have trouble stomaching the ARTGX fee.
Also considering moving from DODIX to a unconstrained fund with smaller AUM. Something like SUBYX or RSIVX. Don't know the wisdom of that, though.
Lastly considering moving my stake in Seafarer to fiancee's portfolio and just splitting EM exposure through ARTWX/GPROX and MAPIX.

I bought RSIVX, but still have a larger position in RPHYX. No changes in equity funds yet.

Took the plunge and bought some RSIVX by exchange from RPHYX and sales from VIG. Intend to keep considerable RPHYX as a cash alternative, though.

Hi! Glad to have found you all by way of the M* boards where I've been a forums poster/reader for
a number of years. I work with an hourly advisor a few times a year to help me with allocation and
am always interested in other opinions about my total portfolio - especially with regard to my current
bond fund holdings and concentration, quantity of positions (i think it's too many and would like to
consolidate where possible). Is there a simple way to show my PF here - or can it be viewed by non M*
users (as it is a Shared Portfolio there)? I am very interested in an alternative to longer-duration bond
funds such as VFIDX and a few ETFs - which i have some concerns about in the rising interest rate
environment. The RSIVX reviews here caught my attention as i was looking also at OSTIX - but my
FA friend when we last spoke in December - said he felt my total PF was already more or less mirroring
the same approach (with the funds i am already in) and that it would be redundant. I am not feeling
the love for anything with the Long-Term component in it for the near term....
Sorry for dumb questions or anything out-of-line in this initial post.. just getting acquainted and
would love to get some feedback on any possible changes i could make on my own to improve upon
my chances for better returns and avoiding the prospect of NAV losses in bond funds
Thanks!
Mike

This was a very interesting article. Personally, I think we would all be better off with the attitude that bonds were vehicles to be held to maturity rather than to be traded willy-nilly, and I admit that when I hear Wall Street babbling about 'liquidity' I almost always make the cynical translation to 'churning', meaning finding an excuse to pile up the trading costs (which for them is trading revenue). After all, trading existing bonds is necessarily less than a zero sum game.
It all makes RSIVX seem more desirable to me. Buying "money good" bonds, always being willing to hold them to maturity, staying small enough to ensure a liquid market if you do wish to sell, all sounds very prudent in light of this article.

Sold HYS & last of PIMIX; bought PMHIX, NCOAX.LW, and a starter kit in RSIVX. Also traded out most of MAINX for GBOAX.LW.

Charles,
CHE puzzles me. Roto-Rooter and palliative care seem an unusal combination.
Sewer lines will plug and people will die, but the PE is 18 and the dividend is 1.1. What do you see that the market doesn't?
Also in the three funds, which might worry the cognoscenti.
Vert,
Hard to argue with any Artisan fund choice. I'm fairly heavy in RSIVX (can't be wrong all the time). Guess it depends on whether Sherman can deliver the promised return. If he can, it looks like the bond fund of choice.

Bought some ARTGX; thinking about RSIVX.

This has been a busy week.
Finally gave up on ARIVX...it wasn't so much the cash stake, but the precious metals bets. Thanks to expatsp who highlighted this earlier in the week.
Swapped this for more BERIX....also established a foothold in RSIVX. By year end, my equity positions will be complete as I add to and complete the allotments for YAFFX, FPACX, and ARTGX. This is a shift of a slug of cash into equities, putting me in my ideal position (for me) of about a 67% equity position leading into what I hope is my year of retirement...maybe.
PRESS

What an interesting thread. Thanks Mike for starting it. Because of this site I've bought over the last 2 years SUBFX, RPHYX, RSIVX, RNCOX, GPIOX, HUSIX, MAINX, ARIVX and SFGIX -- half my fund portfolio. (My other, older positions, mostly due to M*, are ARTKX, FAIRX, FAAFX, MPACX, BRAGX, BRUSX, CIPSX and VPCCX -- all great funds.) I dropped ARIVX after six months and replaced it with half HUSIX and half RPHYX, a decision I feel has both increased my returns and lowered my risk. Aside from ARIVX, about which I've posted a few times already (I lost faith not because of poor performance, but because his management reports convinced me he was a tea partier, convinced that government debt was going to smother the recovery before it started and that the thing to do was load up on miners and precious metals) I've been happy with all these funds. Sure, MAINX is down a few points since I bought it, but it's way overperformed its category, and I do think you need to give a fund at least 3 years if its management seems talented.
In retrospect, like Mike I probably didn't need an Asian bond fund, but the excitement/groupthink about MAINX drove me into it. But MAINX is doing what it is supposed to (not its fault that I chose to buy right before mon pol tightening in the U.S. came into view), it is a small position, and I will probably hold on to it at least through the next cycle of irrational exuberance about Asia.

I would certainly include RPHYX as a GTF that has more than proved itself. Hopefully, RSIVX will follow its sibling's footsteps.

Do we have the mp3 recording of the call to David Sherman, the manager of the RiverPark Strategic Income RSIVX? Unfortunately I have missed it.
Thanks a lot

Reply to @AndyJ: Thanks, Andy, that helps. What about my second question on the projected return for RSIVX? Morty's explanation and conclusion don't conform to what I see in my own RSIVX portfolio. In contrast, the returns they quote for RPHYX perfectly match with mine.

Reply to @David_Snowball: Yes, the conference call was informative and very helpful. I'm still not sure about two things: 1) I didn't catch precisely the %securities overlap between RSIVX and RPHYX. He recited lots of numbers but I missed it; 2) I'm still not sure how they compute the target return for RSIVX on the basis of performance data to-date. Morty explained it but I didn't get it and had no opportunity to question him. David, could you shed some light on these two issues? Thanks.