An update.
PV PWR is less commonly used, so I have stopped using it in more recent data.
PV SWR is the percentage of the original portfolio balance that can be withdrawn at the end of each year with inflation adjustment without the portfolio running out of money (dollar amount withdrawals).
New SWRM is the percentage of the original portfolio balance that can be withdrawn at the end of each year with inflation adjustment but at the end of the term, the leftover amount is inflation-adjusted original principal (dollar amount withdrawals).
Three examples below use the start dates of 01/2007 (Pre-GFC), 01/1987 (Year of 1987 Crash), 01/2000 (Year of Dot.com bubble burst). Idea is to select "bad" starts of withdrawal programs in recent history and see how various hybrid funds did; VFINX/SP500 is included for benchmark comparison. The end date is common 10/2023 (so, these data are not comparable to those in the examples in the June 2023 Post).
Example 1 - Period 01/2007 - 10/2023 that included GFC 2008-09 and pandemic 2020.
FUND SWR SWRM SWRM (corrected)
VWELX 8.63% 4.35% 4.37%
FBALX 8.17% 4.28% 4.09%
ABALX 8.27% 3.92% 3.99%
VFINX 8.05% 5.02% 4.82%
Example 2 - Period 01/1987 - 10/2023. Limited by 11/1986 inception for FBALX, although the (free) PV data goes back to 01/1985.
FUND SWR SWRM SWRM (corrected)
VWELX 7.89% 7.03% 7.035%
FBALX 7.43% 6.58% 6.545%
ABALX 7.63% 6.69% 6.70%
VFINX 8.82% 8.15% 8.106%
Example 3 - Period 01/2000 - 10/2023 captured the dot.com bubble burst and was possibly the worst start for withdrawal programs in the recent history.
FUND SWR SWRM SWRM (corrected)
VWELX 7.25% 4.80% 4.82%
FBALX 6.83% 4.58% 4.47%
ABALX 7.40% 4.83% 4.865%
VFINX 4.34% 2.52% 2.40%
If higher withdrawal rates than indicated are used, then the goals would be missed. But if lower withdrawal rates are used, then the balances at the end would be higher than the goals. The goal for the SWR is $0 balance; goal for the SWRM is the inflation-adjusted original principal.
It is interesting that all-stock SP500 did the best in Examples 1 and 2, but the worst in Example 3. That is the danger in using all-stock portfolios in withdrawal programs - they may work much of the time, but may bite occasionally.
Another point is that the "bad" times are more recent, and don't go back to 1920s or 1930s that included even worse times. And the withdrawal rates these funds sustained in the recent history are higher that the typical Bengen Rule of 4% inflation-adjusted withdrawal.
https://ybbpersonalfinance.proboards.com/post/1249/thread
Edit/Add, 11/19/23. SWRM (corrected)
For data consistency, the PV runs should be to 2022 (recent full year), not 2023 (partial year in 11/2023). While SWR is unaffected, SWRM is affected and is corrected.

https://www.sec.gov/Archives/edgar/data/809593/000113322823006031/abfeacfrif-html6974_497.htm
497 1 abfeacfrif-html6974_497.htm AMERICAN BEACON FEAC FLOATING RATE INCOME FUND - 497
American Beacon FEAC Floating Rate Income Fund
Supplement dated November 15, 2023 to the
Prospectus, Summary Prospectus, and Statement of Additional Information (“SAI”)
each dated December 29, 2022, as previously amended or supplemented
The Board of Trustees of American Beacon Funds has approved (i) the automatic conversion of the SP Class shares of the American Beacon FEAC Floating Rate Income Fund (the “Fund”) into A Class shares, and (ii) the termination of the SP Class shares of the Fund, effective as of the close of business on December 29, 2023 (the “Conversion Date"), based upon the recommendation of American Beacon Advisors, Inc., the Fund’s investment manager. Effective immediately, the Fund will no longer accept purchases of SP Class shares.
No action is needed on your part. Each SP Class shareholder will receive A Class shares in an amount equal to the value of the shareholder’s SP Class shares as of the Conversion Date. Please be advised that the net annual fund operating expenses of the A Class shares will be the same as the net annual fund operating expenses of the SP Class shares as of the Conversion Date. No sales loads, commissions or other transactional fees will be imposed on shareholders in connection with the automatic conversion of their shares. Prior to the Conversion Date, shareholders of SP Class shares may redeem their investments as described in the Fund’s Prospectus. No sales charges, redemption fees or termination fees will be imposed in connection with such redemptions. In general, redemptions are taxable events for shareholders. For federal income tax purposes, the conversion of shares of one share class of the Fund to shares of a different share class of the Fund is not expected to result in the realization of a capital gain or loss. You should consult your tax adviser to discuss the conversion and determine its tax consequences.
For more information, please contact us at 1-800-658-5811, Option 1. If you purchased shares of the Fund through your financial intermediary, please contact your broker-dealer or other financial intermediary for further details.
***********************************************************
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

https://www.sec.gov/Archives/edgar/data/1156906/000119312523276837/d548770d497.htm
497 1 d548770d497.htm CAUSEWAY CAPITAL MANAGEMENT TRUST
CAUSEWAY CAPITAL MANAGEMENT TRUST
(the “Trust”)
Causeway Concentrated Equity Fund
(the “Fund”)
SUPPLEMENT DATED NOVEMBER 14, 2023
TO THE SUMMARY PROSPECTUS AND PROSPECTUS,
DATED JANUARY 27, 2023
AND STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 27, 2023
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN THE FUND’S SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION AND SHOULD BE READ IN CONJUNCTION WITH THE FUND’S SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION. CAPITALIZED TERMS NOT DEFINED HEREIN ARE AS DEFINED IN THE FUND’S SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION.
The Board of Trustees of the Trust has approved a Plan of Liquidation for the Fund, pursuant to which the Fund will be liquidated (the “Liquidation”) on or about December 14, 2023 (the “Liquidation Date”). The Trust may change the Liquidation Date without notice at the discretion of the Trust’s officers.
Suspension of Purchases. In connection with the Liquidation, effective as of the close of business on November 14, 2023, the Fund will close to new purchases of shares. Prior to the Liquidation Date, shareholders may continue to redeem their shares in the manner described in the “How to Sell Fund Shares” section of the Prospectus.
Once the Fund begins to liquidate its portfolio in preparation for Liquidation, the Fund will not pursue its investment objective or engage in normal business activities, except for the purposes of winding up its business and affairs, preserving the value of its assets, paying its liabilities, and distributing its remaining assets to shareholders.
Mechanics. Prior to the Liquidation Date, the Fund may make a distribution of any net investment income, net realized capital gains and/or any additional amounts necessary to avoid any excise tax obligations for the Fund. The Trust will automatically redeem any shares of the Fund outstanding on the Liquidation Date as of the close of business on that date. The proceeds of any such redemption will be the net asset value of such shares after the Fund has paid or provided for all charges, taxes, expenses and liabilities of the Fund. The Fund’s investment adviser will bear all of the expenses (other than brokerage or other portfolio transaction expenses) associated with the liquidation of the Fund to the extent such expenses exceed the amount of the Fund’s normal and customary fees and expenses accrued by the Fund through the Liquidation Date. It is expected that the Fund will pay to shareholders the proceeds of Liquidation in cash to all shareholders of record of the Fund on the Liquidation Date.
U.S. Federal Income Tax Matters. For shares held in taxable accounts, whether you sell your shares or are automatically redeemed as described above, you will generally recognize a capital gain (or loss) equal to the amount you receive for your shares above (or below) your adjusted cost basis in such shares. See the section titled “Taxes” in the Prospectus. Please consult your personal tax adviser about the potential tax consequences.
If you have any questions regarding the Liquidation, you may contact the Fund at 1-866-947-7000.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.

LCR appears to be within my risk/reward bumper rails. 1/3/2020 inception. New mgt 2011 LCORX. On my watch list. Fund of funds.

Giroux definitely showed how to manage one’s career - it is not sufficient to be a high performer at one’s job!
Income and Capital Appreciation Fund is Not duplicative of PRWCX.

Steve Rommick is also one of the managers on another allocation fund, SOR. Source Capital is an allocation CEF that has beaten the 60/40 bogey the fund uses over the past 1 yr and 3 yr periods, but it has not done so for longer periods. Rommick didn't start managing it until 2015, FWIIW. SOR at last report held 20% in non-US stocks. Hard to say what overlap there might be among FPACX, SOR, and the new ETF.

"Investment Objective(s)
The fund seeks total return through a combination of income and capital appreciation."
No joke!
Why do they need this fund when they have PRWCX, an allocation fund, with flexible mandate?

One risk with bonds is that they are "contracts" and those can be subject to interpretations by courts and/or governments.
Look at the recent fiasco in Switzerland with the AT1 bonds. These are risky bonds that can be counted as bank Tier 1 capital in Europe. The risk is that they are wiped out in bankruptcy. So, when the Swiss Government forced UBS to rescue Credit Suisse, UBS "demanded" wipeout of Credit Suisse AT1 bonds. But there was no formal bankruptcy, only a rescue. The matter is still in the courts.
Other European countries issued statements that this AT1 mess cannot happen there.
Nevertheless, the European AT1 market was shaken on this action by the Swiss.
Likewise, in the speculative CDS market, it isn't clear cut when the triggering event is.

Can't wait to figure out which tail is wagging which dog here and what the systemic risks might look like.....
CDOs for cyber, anyone?
Cyber ‘Catastrophe Bonds’ Move Step Closer to Hitting Public Debt Markets

By Gautam Naik
November 12, 2023 at 8:30 AM ESTCyber catastrophe bonds may be about to move out of the shadows of private deal-making and into the public debt markets.
So-called cat bonds, which farm out hard-to-insure risks to capital market investors in exchange for double-digit returns, have typically been built around natural disasters such as hurricanes. But as the potential fallout of business-halting cyberattacks becomes too big to insure, issuers are seizing the moment. Beazley Plc, which owns specialist insurers across Europe and the US, is exploring a potential $100 million cyber cat bond, according to Artemis, a research firm specializing in insurance-linked securities. And Axis Capital is preparing to issue a $75 million cyber catastrophe bond, according to a preliminary offer document seen by Bloomberg. Spokespeople for Axis Capital and Beazley declined to comment on the deals. The wider market for cat bonds is likely to reach a record $40 billion this year. A lot of that growth has been fueled by the impact of climate change, as extreme weather shocks threaten to make insurers’ business models untenable. For that reason, some of the most active players in the cat bond market are reinsurers such as Swiss Re AG and Munich Re AG. Investors have been drawn to returns that trounce those of US Treasuries. This year, the Swiss Re Global Cat Bond Performance Index is up 18%, while the Bloomberg US Treasury Index has dropped about 1%. Issuers of cyber cat bonds want to protect themselves from financial losses that can follow a major cyberattack, including lost revenue, legal fees and regulatory fines. Read More: ICBC Hit by Cyberattack, Tells Clients to Reroute Trades
Insurance-linked securities “offer corporate boards and business owners a degree of comfort over their balance sheet resilience in the event of a larger cyber event,” according to a recent report co-authored by Kathleen Faries, chief executive officer of Artex Capital Solutions.
But with limited historical data to analyze, as well as increasingly sophisticated forms of cyber crime, investors face unusually high levels of risk....
< - snip - >
https://www.bloomberg.com/news/articles/2023-11-12/cyber-catastrophe-bonds-move-step-closer-to-hitting-public-debt-markets?srnd=premium

Any idea when T. Rowe Price Capital Appreciation and Income Fund will open for business?

Well, now! Great news! With reference to my question above, there might be a million ways to do it; can anyone here on the board offer a simple method? To gift to my wife? She is a US citizen. (Or son, within the $18k limit?)
My own Pension, SS, gains/losses from investments are our only reportable income. She holds a T-IRA that is stinking up the world this year, worth today less than $10k. So that counts, but not for much. But no earned income by her.....So, can't dump it into her IRA.
The idea here is to reduce my own Trad. IRA and grow the (joint) brokerage, taxable side of the portfolio. Taxes are not a consideration. And I would not want to just empty-out my own IRA, because that would be way too much money added to taxable income in a single year. Don't ever want to see THAT sort of tax bill!

I did some research on Boaz Weinstein & Saba. Guy has an interesting background. He is a hedge fund "genius" but question is whether his magic translates into his public/listed funds. This doesn't always work - look at Robert Goldstein and his funds (GSPY, GVLU, etc), Carl Icahn and his investment vehicle (IEP).
In 2021, Saba followed a similar strategy to takeover Voya PPR and turn it into a different hybrid fund BRW. A recent report for BRW shows mix of investments in stocks, bonds, CEFs, cryptos. GIM/SABA will probably do the same on a bigger scale (it’s 4x BRW); for now, the current ER will be maintained but may go up later.
Another unexpected CEF development occurred in 2020 when Franklin Templeton/Franklin/BEN bought Legg Mason whose subsidiary was Western Asset Mgmt. Western had many bond CEFs and this change in control triggered the renewals of all Western CEFs’ advisory contracts. Saba and other CEF activists took advantage of this by buying positions in several Western ETFs that they wanted to target.

I think that list includes acquirers as well as acquired and bankrupt banks.
I had an a/c at NetBank when it failed. Its buyout by EverBank had fallen through. As part of the FDIC rescue, it was acquired by ING Direct (anyone remember that?), and that was acquired by Capital One when Dutch rescue of ING required its withdrawal from most foreign operations. That is how I got a Capital One a/c.
EverBank itself was acquired by TIAA a few years ago and was renamed TIAA Bank. TIAA had 2nd thoughts and has now spun off EverBank, so it exists again.

Gee, this sounds strangely - and disturbingly- familiar.....as the coda to 'The Big Short' notes, even as the dust was settling from the GFC, banks already were exploring the sale of CDOs under different names like "bespoke debt tranche instruments." History may not repeat, but it sure does rhyme, which also suggests the WSJ is being somewhat disingenuous in calling this a 'new' thing.
Big Banks Cook Up New Way to Unload Risk
Banks are selling risk to hedge funds, private-equity firms through so-called synthetic risk transfers
U.S. banks have found a new way to unload risk as they scramble to adapt to tighter regulations and rising interest rates.
U.S. Bank and others are selling complex debt instruments to private-fund managers as a way to reduce regulatory capital charges on the loans they make, people familiar with the transactions said.
These so-called synthetic risk transfers are expensive for banks but less costly than taking the full capital charges on the underlying assets. They are lucrative for the investors, who can typically get returns of around 15% or more, according to the people familiar with the transactions.
< - >
The deals function somewhat like an insurance policy, with the banks paying interest instead of premiums. By lowering potential loss exposure, the transfers reduce the amount of capital banks are required to hold against their loans
< - >
Banks started using synthetic risk transfers about 20 years ago, but they were rarely used in the U.S. after the 2008-09 financial crisis. Complex credit transactions became harder to get past U.S. bank regulators, in part because similar instruments called credit-default swaps amplified contagion when Lehman Brothers failed.
Regulators in Europe and Canada set clear guidelines for the use of synthetic risk transfers after the crisis. They also set higher capital charges in rules known as Basel III, prompting European and Canadian banks to start using synthetic risk transfers regularly.
U.S. regulations have been more conservative. Around 2020, the Federal Reserve declined requests for capital relief from U.S. banks that wanted to use a type of synthetic risk transfer commonly used in Europe. The Fed determined they didn’t meet the letter of its rules.
< - >
https://www.wsj.com/finance/banking/bank-synthetic-risk-transfers-basel-endgame-62410f6c

https://www.sec.gov/Archives/edgar/data/1873280/000089418923008251/kellyetfs-liquidationstick.htm
497 1 kellyetfs-liquidationstick.htm 497
Filed pursuant to Rule 497(e)
File Nos. 333-258490; 811-23723
Supplement to the
Summary Prospectus, Prospectus and Statement of Additional Information (“SAI”)
dated December 29, 2022, as previously supplemented, of the
Kelly Hotel & Lodging Sector ETF
November 6, 2023
The Board of Trustees of the Trust has approved a Plan of Liquidation for the Kelly Hotel & Lodging Sector ETF (the “Fund”). Accordingly, the Fund is expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to shareholders on or about December 8, 2023 (the “Liquidation Date”).
Effective November 7, 2023, the Fund will no longer accept orders to purchase creation units, and the last day of trading of shares of the Fund on NYSE Arca, Inc. will be November 30, 2023 (the “Closing Date”). Shareholders of record on the Liquidation Date will receive cash at the net asset value of their shares as of such date. Shareholders remaining in the Fund until the Liquidation Date may bear increased transaction fees in connection with the disposition of the Fund’s portfolio holdings. Any liquidation proceeds paid to shareholders should generally be treated as received in exchange for shares and will therefore generally give rise to a capital gain or loss depending on a shareholder’s tax basis. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation.
In anticipation of the liquidation of the Fund, Kelly Strategic Management, LLC, the Fund’s adviser, will manage the Fund in a manner intended to facilitate its orderly liquidation, such as by raising cash or making investments in other highly liquid assets. As a result, during this time, all or a portion of the Fund may not be invested in a manner consistent with its stated investment strategies, which may prevent the Fund from achieving its investment objective. Shareholders of the Fund may sell their holdings on the NYSE Arca, Inc., on or prior to the Closing Date. Customary brokerage charges may apply to such transactions. After the Closing Date, we cannot assure you that there will be a market for your shares. Please contact the Fund at 1-800-658-1070 if you have any questions or need assistance.
Please retain this Supplement with your Summary Prospectus, Prospectus and SAI for future reference.

A few other things to keep in mind:
1. ACA - for those "younger" (pre-65) folk, subsidies get phased out based on income. KFF.org seems to have a decent calculator for these subsidies. I haven't checked it out extensively, but IMHO KFF is one of the most complete and accurate sources of information on health care.
https://www.kff.org/interactive/subsidy-calculator/
2. State help with Medicare drug coverage. This depends on state and income level. For example, NYS has its Elderly Pharmaceutical Insurance Coverage (EPIC) program that may help with co-pays for individuals with income up to $75K (individual) or $100K (married).
3. Cap gain/ qualified divs - this can get messy for an obvious reason and one that's more complicated:
a) Cap gains are "outside" of ordinary taxes. They have their own rates and brackets. The conversion calculator assumes all AGI is ordinary income. Whether cap gains or ordinary income, all income affects IRMAA the same way. But how much to convert to fill an ordinary income tax bracket depends on how much of your income is taxed as ordinary income and how much is taxed as cap gains.
You can fake out the calculator by just giving it the ordinary income part of your AGI to fill your bracket. Then recalculate with this amount plus your cap gains income (no extra conversions) to see the IRMAA impact.
b) If your income is at the level where some cap gains are taxed at 0% and some at 15%, then every extra dollar you earn (convert) is taxed at 15% plus your ordinary tax rate. Kitces calls this region of income the "bump zone". A simple rule of thumb is "go long (convert until you're well past the bump zone) or go home". Kitces provides a more thorough analysis for Roth conversions and bump zones.

https://www.kitces.com/blog/long-term-capital-gains-bump-zone-higher-marginal-tax-rate-phase-in-0-rate/
FInally, a petty observation. The conversion calculator doesn't seem to include Part D IRMAA (around 1/5 of Part B IRMAA). "It is not commonly known, but the more you earn, the more you pay for Medicare Part B."
Apparently even less well known is that Part D also has IRMAA charges. :-)
https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/monthly-premium-for-drug-plans

iShare CGs for some ETFs,
https://www.ishares.com/us/capital-gains-distributions

I wanted to share this recent (Nov 2023) article regarding M2 money supply and its recent contraction:

The significance of this decline is twofold. To start with, there are economic implications of having less capital in circulation. With core inflation still well above historic norms due to higher shelter expenses, consumers may be forced to pare back their discretionary purchases. In other words, declining M2 sets the stage for a potential downturn in the U.S. economy.

money-supply-great-depression-big-move-in-stocks
Another article (Feb 2021) discusses M2 and its inconsistent implications on stocks:

...it is clear enough that big surges in M2 are followed by big surges in the stock market. It is less clear whether or not big dropoffs in M2/GDP lead exactly to stock market declines, but they do seem to at least bring periods of increased volatility. So that is what we can look forward to if the Fed ever decides that it will try to put the M2 genie back into the bottle.

understanding_m2_and_stocks

Pacific Current Group owns stakes in several boutique fund managers.
Its major shareholder, River Capital, does not support the GQG Partners' transaction.
https://financialstandard.com.au/news/gqg-makes-official-bid-for-pac-179801936

JP Morgan Equity Premium Income ETF (JEPI) has become the largest active ETF ($29.1B AUM) since its launch in May 2020.
The fund had inflows of approximately $12.3B thus far in 2023.
Now other firms want a piece of the action.
Morgan Stanley launched Parametric Equity Premium Income ETF (PAPI).
Blackrock introduced BlackRock Advantage Large Cap Income ETF (BALI).
Golman Sachs launched the Goldman Sachs S&P 500 Core Premium Income ETF (GPIX) and
the Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ).
Covered call ETFs may appeal to investors seeking income creation with some downside protection.
These ETFs reside in Morningstar's Derivative Income category which had inflows of $20.4B this year.
Citiwire article (may be paywalled)
Link
Morningstar also published a related article recently.
Link