We do not use FMI Large Cap. It is certainly an ok option, and the concentrated portfolio is a plus. You might consider using a fund with smaller asset size. That would give the managers much more flexibility in the short term, until the fund gains popularity. We have been adding DGHM All Cap Value (DGAIX) to a number of our client accounts. Great history as a separately managed fund, consistent philosophy, reasonable fees of 0.99%. The retail shares are a higher 1.27%, but still reasonable for a very small, newer fund. And the attraction of being all-cap rather than held to a specific size of company is a real plus.
There are other funds like this. Osterweis (OSTFX) is very similar to DGHM in terms of owning all sizes of companies. They can be a bit more growth-oriented than DGHM, but I would not get hung up about growth/value when picking managers and funds.
My guess is that FMI Large Cap is an good option. Just don't tie yourself to large, mid, small, value, growth. What I would spend time on is finding the best managers who will give you an overall diversified portfolio.

I am designing an income-producing in-retirement portfolio for an elderly loved one. My overall plan is to allocate money into several different strategies to mitigate management risk. I am considering an AssetBuilder capital preservation portfolio for one of these strategies.
I wondered if anyone had had any experience with AssetBuilder as a money management house. I am not particularly seeking comments about Scott Burns, DFA, or the theories behind DFA's indexing strategies. I am more looking for information on what it is like to invest money with them. Is the customer service good? Do they return emails and phone calls in a timely way? Are the tools for monitoring investments online sufficient for an individual investor's needs?
Any experienced-based comments will be welcome.
Thanks.
gfb

Howdy,
Here is a Fidelity Work Horse fund:
Fid. Capital & Income, FAGIX
Listed as, and indeed a High Yield bond; that also holds 12-20% in equity holdings, depending on market conditions. This fund, not unlike 95% of mutual funds available is subject to market downturns, too; but with the exception of June, 2008-May, 2009 we have had monies in this fund since 1981.
The M* link here will let you review the YTD, 1, 3, 5 & 10 year total returns and I suggest that anyone compare their favorite equity fund; with the exception of narrow sector funds against this stellar return record.
http://quote.morningstar.com/fund/f.aspx?Country=USA&ss=gf&Symbol=FAGIX
FAGIX does and has had commentary and reviews from the financial world, over the years; but is one of those funds among the many 1,000's, that in my opinion, does not receive much flag waving for its efforts.
Take care,
Catch

My favorite fund in TRP is Capital Appreciation PRWCX. I use it as a core fund along with permanent PRPFX. The other part of my core is BERIX and FPACX.
One notch above my core I add some of the funds you like such as MACSX and MAPIX. ( I think I learned about the latter 2 from you from you Max)'
The TRP fund that I have been adding to over the past year is PRHSX Health Sciences.
I do have a nice few small caps such as Fidelity Small Cap discovery and Heartland valur Plus HRVIX.
A few weeks ago I reluctantly sold my stake in Fairholm FAIRX
as I have done very well over the years with Berkowitz but the critiques on FA were too persuasive for me to hold. That could be a mistake as Bruce is a proven winner. I am almost retired and felt I could not feel comfortable for him to work out ST Joe and the financials. But my gut feeling is that he will.
Burt S.

Does anyone employ a hedging strategy using PIMCO StocksPLUS TR Short Strat D (PSSDX) which shorts the S&P 500 and a S&P 500 fund, such as VFINX=Vanguard 500 index?
Linked is a comparison chart of the two funds using stockcharts. It would seem to me that taking profits periodically from one and redeploying in the other would provide a smoother long term outcome.
I have often wondered that if on a periodic (weekly / monthly / quarterly) basis if an investor rebalanced a 50/50 portfolio of VFINX = Vanguards S&P 500 fund and a fund like PSSDX if volatility would be reduced and long term gains realized.
You may have to select Histogram chart option (lower left) as a way of better comparing periodic gains/losses. The comparison chart is based on a 200 day moving average (200DMA).
I haven't figured out how I would reallocate but I will run some spread sheets to test out some ideas.
Any thoughts would be appreciated,
http://stockcharts.com/freecharts/perf.html?vfinx,pssdx

It used to be that Fidelity would enforce the $2500 min. for FIDO funds. That changed sometime late 2008, 2009 quietly. They did not officially change it per prospectus but now they allow at $500 typically and you can build up from there.
They will access a fee of $12 if I remember right, if the fund is below $2000 when they go over balances at September (or October?) (check prospectus) but you can build until then and if the market cooperates you it might help you with some gains.
If you cannot meet $2000 by then and do not want to pay fee, you sell the whole position after receiving the warning and re-invest next month or something else.

I'll Suggest PRWCX = T Rowe Price Capital Appreciation as a core holding.

I am one year from taking SS at age 66. I consider myself an aggressive/high risk bond investor. I currently hold in roughly equal amounts totaling $255,000 - AGDYX (Alliance Bernstein High Income Advisor), MWHYX (Metropolitan West High Yield Bond M) and MWTRX (Metropolitan West Total Return Bond M). I am quite content with my current mix of multi-sector, high yield and intermediate corporate bonds. I am re-investing the dividends and capital gains until I take the income in about one year. I also hold small positions in two equity funds - EXWAX and FAIRX, in addition to a Roth Fidelity managed IRA. Any suggestions for another bond fund to provide some extra kick or leave well enough alone?

YACKX is an excellent choice. Other funds I would consider are:
1. ARVIX Aston/RiverRoad Independent --- managed by Eric Cinnamond, formerly of Intrepid Small Cap Value.
2. FPACX FPA Crescent
3. BERIX Berwin Income
4. ICMBX Intrepid Capital
5. PRPFX Permanent Portfolio
6. MFLDX Marketfield Fund

CathyG,
I've done two trust transfers involving my parents' living trusts. One was straightforward; the other was complex, owing to some of the language in the former broker's custodian agreement which made the transfer a taxable event (this arose from a stipulation in the former broker's custodian agreement, not the trust documents): something that the new broker's agent didn't pick up on, and which could have cost my parents a SIGNIFICANT amount of money. Fortunately, my lawyer DID catch it, and worked with the new broker to draw out the transfer over the course of a year so that, on paper, it produced a net capital loss for tax purposes.
The best advice I can give you is to say, before you do anything, please have YOUR lawyer and/or financial advisor review ALL relevant documents (assuming you haven't already) to clarify any and all legal and financial (tax) issues that may arise from the transfer.
A friend of mine who's a lawyer signs all her message board posts, "Don't take advice from a lawyer over the Internet. I'm a lawyer, but I'm not YOUR lawyer." Her point being that the devil is in the details, so without knowing the specific details of a poster's situation, the best she (or any lawyer) can do is offer general comments of what is likely to be the case assuming that the inquirer has not overlooked or omitted any relevant information that may invalidate her analysis.
While there are many knowledgeable posters, including financial and legal professionals, here on MFO, unless they have the chance to review all the relevant documents, they're pretty much shooting from the hip.

Thank you so much, msf, for taking the time to be so responsive to my question! I am so grateful for your very detailed comments and extremely impressed with your knowledge on this topic. It was so nice of you to also take the time to give me the links - I will check them all out after I send this.
I found the latest agreement (called "Trustee Management Agency Agreement"), which covers this Trust. It shows my sister and I as Trustees, and USB as Principal's Agent. The Termination clause does allow termination by either party, stating "Agent will deliver all assets then held as directed." The latest Trust Agreement this refers to does show Mom as Grantor, so it sounds like your caveat re grantor, trustee and beneficiary would not apply.
The one clause that concerns me is "Nominee Registration", which states "Certificates for shares of stock and other registered securities will be registered in Agent's name...." If you would be so gracious as to answer one more question, does this mean that USB would have to sell the stock portion of the Trust's investments since they should now be registered in Mom's name? If so, that wouldn't that incur all the capital gains from the very long held stock portions?
Other than the above, from what I can tell it looks good to go with the transfer after I contact Scottrade to verify. This transfer sounded simple enough for me not to have to hire an estate attorney if I was able to get a couple questions answered - which you did beautifully! THANK YOU SO MUCH! Cathy
P.S. I don't want you (or anyone who responds) to ever worry about my taking any advice I receive from this Forum as formal "legal advice." I always consider any responses to be educated comments from knowledgeable people like yourself who I have submitted questions with a limited amount of information - and I would never take any extreme actions based solely upon any one response.

http://www.sec.gov/Archives/edgar/data/1217286/000119312511100451/d497.htm
Supplement dated April 18, 2011 to the Prospectuses dated February 28, 2011
Effective May 2, 2011, the Highbridge Dynamic Commodities Strategy Fund (the “Fund”) will be publicly offered on a limited basis. Investors will not be eligible to purchase shares of the Fund, except as described below:
Shareholders of record of the Fund as of May 2, 2011 are able to continue to purchase additional shares in their existing Fund accounts either through J.P. Morgan Funds Services or a Financial Intermediary and may continue to reinvest dividends or capital gains distributions from shares owned in such Fund;
Shareholders of record of the Fund as of May 2, 2011 are able to add to their accounts through exchanges from other J.P. Morgan Funds;
Group employer retirement plans including 401(k), 403(b) and 457 plans (and their successor plans), which have the Fund available to participants on or before April 18, 2011, may continue to open Fund accounts for new participants and purchase additional shares in existing participant accounts. Group employer retirement plans including 401(k), 403(b) and 457 plans (and their successor plans) may also establish new accounts with the Fund, provided the group employer retirement plan has been accepted for investment by the Fund and its distributor on or before May 2, 2011. Additionally, certain fee-based advisory programs may purchase shares of the Fund for new and existing accounts. These particular programs were accepted for continued investment by the Fund and its distributor on or before May 2, 2011;
Ÿ Current and future JPMorgan SmartRetirement Funds and such other J.P. Morgan Funds as are designated by the J.P. Morgan Funds Board of Trustees will be able to purchase shares of the Fund.
If all shares of the Fund in an existing shareholder’s account are voluntarily redeemed or involuntarily redeemed (due to instances when a shareholder does not meet aggregate account balance minimums or when participants in Systematic Investment Plans do not meet minimum investment requirements), then the shareholder’s account will be closed. Such former Fund shareholders will not be able to buy additional Fund shares or reopen their accounts in the Fund. The foregoing restrictions, however, do not apply to participants in eligible employer retirement plans.
If the Fund receives a purchase order directly from an investor who is not eligible to purchase shares of the Fund, after the limited offering dates outlined above, J.P. Morgan Funds Services will attempt to contact the investor to determine whether he or she would like to purchase shares of another J.P. Morgan Fund or would prefer that the investment be refunded. If J.P. Morgan Funds Services cannot contact the investor within 30 days, the entire investment will be refunded.

It sounds like this is a revocable (can be undone) inter vivos (living, i.e. not at death) trust, where UBS is the named trustee ("person" responsible for following the written directions of the trust), and you (given power of attorney) can "stand in the shoes" of your mother.
If that's a correct description, then what you may be paying UBS to do is to act as a fiduciary for the property, to manage (e.g. invest) the property in accordance with the terms of the trust, to distribute money from the trust in accordance with its terms (e.g. the trust might say that all income but no capital is to be distributed to your mother). That's not nothing; that puts UBS at legal risk, and also says that they have to follow the "rules" of the trust.
If you want someone else to be the trustee, then you may have to amend the trust document.
See, e.g. http://www.freelegaladvicehelp.com/trust/living-trust/How-Do-You-Change-The-Trustee-Of-A-Living-Trust.html
Assuming all of this description is correct, you might consider naming yourself (or your mother) as trustee, instead of paying a third party. Be aware that a trust may be void if the grantor (person funding the trust), trustee (fiduciary responsible for overseeing the trust), and beneficiary are all the identical individual. See merger rule, e.g. http://www.morrislawgrp.com/living_trusts.php
Also, since this appears to be a revocable trust, all property in the trust at time of death is considered part of the estate for estate tax purposes. (That's different from the issue of who gets the property, which is outside of the estate as far as the will is concerned.) So as far as the IRS is concerned, your mother still "owns" the property - that's why you get a step up in basis at death, but as part of the bargain for that tax benefit, the property is also subject to estate taxes.
Of course, none of this is legal advice, and your situation may be different.

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
by Burton G. Malkiel
http://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393081435
I recommend this book because it covers a lot of ground for beginner investor and this is 10th edition of book which even long time investors can find something for themselves. I strongly believe this should be one of the first set of books an investor should read. If I had to pick only one book, I would pick this one.
All About Asset Allocation, Second Edition
by Richard Ferri
http://www.amazon.com/All-About-Asset-Allocation-Second/dp/0071700781
This book covers in good detail the act of building a portfolio that incorporates different asset classes. There are many books in this category which I could recommend, but this one is easily digested by an beginning investor.
Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition
by John Bogle
http://www.amazon.com/Common-Sense-Mutual-Funds-Anniversary/dp/0470138130
This is updated version of Bogle's 1999 book. He actually left the original text in and updated data, charts and provided comments of what happened in the 10 years, what worked and what didn't. As the title indicates, it is geared towards mutual funds and mutual fund investors.
Unconventional Success: A Fundamental Approach to Personal Investment
by David F. Swensen
http://www.amazon.com/Unconventional-Success-Fundamental-Approach-Investment/dp/0743228383
This book, written by Yale Endowment Manager David Swensen, has useful discussions regarding asset classes and which ones to use in a portfolio, the conflicts of interests in the industry and some model portfolios.
Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich
by Jason Zweig
http://www.amazon.com/Your-Money-Brain-Science-Neuroeconomics/dp/0743276698
This book might help an investor avoid common behavioral mistakes in investing which most everyone (beginners and seasoned alike) fall from time to time. By understanding what happens when we feel emotions like Greed, Fear, Regret, and Confidence we might (hopefully) avoid some of the costly mistakes. The earlier an investors is aware of these behavioral shortcomings, the better.
The Intelligent Portfolio: Practical Wisdom on Personal Investing from Financial Engines
by Christopher L. Jones
http://www.amazon.com/Intelligent-Portfolio-Practical-Investing-Financial/dp/0470228040
FinancialEngines.com is a company that Nobel Laureate William Sharpe has founded. This book explains the use of Monte-Carlo portfolio simulation techniques to determine the likelihood of reaching goals (retirement etc.) and success rate. Armed with this knowledge an investor can be better prepared for the future (adjust savings level, portfolio risk, lifestyle etc.)
Peter L. Bernstein Classics Boxed Set : Capital Ideas, Against the Gods, The Power of Gold
by Peter Bernstein
http://www.amazon.com/Peter-Bernstein-Classics-Boxed-Set/dp/0471736252
A classic from Financial Historian, late Peter Bernstein. This is probably not a beginner set. But, this 3-book set is important to understand how financial theories evolved and portfolio construction and management changed from complete ad-hoc to what it is today.
Note: Hard to pick a best investment book of all times. It is probably yet to be written.

Wednesday's count: 9 responses, 21 books or book sets, and no overlaps! You folks have some really cool recommendations. Here's the mid-week title list. The original call for suggestions appears just below it.
Montier, The Little Book of Behavioral Investing: How not to be your own worst enemy
Hobbes (remember "the war of all, against all"?) or Machiavelli ("a prince never lacks legitimate reasons to break his promise")
Mutual Funds for Dummies
Malkiel, A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
Bogle, Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition
Ferri, All About Asset Allocation, Second Edition
Swensen (the Yale manager), Unconventional Success: A Fundamental Approach to Personal Investment
Faber and Richardson, Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets
Zweig, Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich
Jones, The Intelligent Portfolio: Practical Wisdom on Personal Investing from Financial Engines
Peter L. Bernstein Classics Boxed Set : Capital Ideas, Against the Gods, The Power of Gold
Graham, The Intelligent Investor
McGrath, The Asylum: The Renegades Who Hijacked the World's Oil Markets, largely about NYMEX traders
Olson, Zero Sum Game: The Rise of the World's Largest Derivatives Market, about the Chicago Exchanges
Lewis, The Big Short: Inside The Doomsday Machine
Morgan, Market Forces, "a futuristic novel"
Elton, Modern Portfolio Theory and Investment Analysis
Heady, The Complete Idiot’s Guide to Making Money on Wall Street
Stikky Stock Charts (yes, two k’s)
Bach, The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich
Clayson, The Richest Man in Babylon
Pond, Your Money Matters: 21 Tips for Achieving Financial Security in the 21st Century
---------------
I would like to help extend the reach of your expertise. Collectively, you've got a lot of wisdom and I'd like to make it a bit more accessible to new visitors and old friends alike. One plan for doing that is to create two new pages dedicated to your recommendations.
The first page will focus on books. I'd like to solicit nominations for books in two categories: the one best investing book that every new investor (perhaps, every investor?) should read. The other is the one best personal finance book (that is, the one that covers the "bigger picture" stuff) that every one should read.
The rules are simple: pick a book that you've read and that others might plausibly read. And explain in a sentence or two what the book argues and why it's good.
I'll collate your recommendations and our crack technical team will create a page highlighting the top offerings (three? five? don't yet know) in each category, with a survey of comments and a link to Amazon.
Chuck Jaffe of MarketWatch called Friday, with a recommendation for a second reader-inspired page that he's been hoping for for quite a while. Once we have a good start to the book discussion, I'll raise Chuck's suggestion and offer up a second survey.
Thanks, as ever, for your time, patience and good spirits. They help a lot!
David

Hank, while you are looking for tax efficient funds, keep a note that some funds' tax efficiency had been boosted due to accumulated losses. Those losses have largely gone and in 2011 more funds are likely to distribute capital gains incurred by trading. Don't be fazed when you get unexpected distributions.
Keep high distribution funds in retirement accounts and more growthy (less income) funds in taxable accounts. Look for low turnover funds or specifically tax-managed funds. If you are likely to be in high tax bracket, consider investing some of your money in muni-funds.

http://www.bloomberg.com/news/2011-04-15/gross-alone-beating-s-p-as-two-crashes-in-decade-fail-to-boost-bear-funds.html
PIMCO StocksPlus funds are not stock funds. They invest in futures contracts with collateral invested in bonds. Some call this a version of portable alpha strategy.
Despite the success of PIMCO StocksPlus Short strategy, I personally do not believe a short biased fund is a good strategy for long term investing. These funds got a good boost in 2008-early 2009 and has ever since bleeding those gains.

JR, managed payout mutual funds (launched in 2007 or 2008) also provide part of the return from ROC if the dividend and/or capital gain is not sufficient to provide the return expected. But that is disclosed to the investors.

dear spunky, what is the point of this message? are you discussing a particular fund, which returns capital as part of its distribution policy? there are many sophisticated investors on this board who understand the difference. also, what you're referring to is mostly attributable to closed-end funds, not mutual funds to which this board is generally dedicated (gabelli being an exception). Finally, there are different types of ROCs, some of which are "good" such as in covered call strategies. this board might benefit from somewhat more thoughtful discussion. Many thanks.

Seems as if shareholders consider "distributions" as "dividends" disregarding the ROC.