Raq: Would you get consider getting rid of prpfx and pgdix altogether? If, as Jave suggests, 5% of prpfx isn't going to make any real difference to my bottom line, then what's the point? And if I brought pgdix down to 5%, then it might be in the same boat. If I think of them in that light, then I wouldn't be adverse to selling either or both...
So, are you kind of suggesting I could just as well put the prwcx $ into oakbx? one problem with that is, i have the oakbx in taxable and the prwcx in an ira and, of course, oakbx is closed so i can't put any ira money into it.
As to MAPIX, the only reason I thought about reducing it is performance and emotion, which is why I need a nearly buy-and-hold portfolio in the first place; I'm a classic buy-high, sell-low investor; and my reasoning as to selling off some MAPIX is a good example of that. I have no other reason, and no aversion to upping my allocation to foreign stocks/bonds/etc at all.
That makes the picture clearer. You want a portfolio that is steady enough that you won't be tempted to fiddle with it, yes? So high-volatility funds are problematic because you'll look at the fund when it's going poorly and want to change it, even if the portfolio is doing ok.
OAKIX is pretty volatile. WSCVX may also be; we don't have a 2002 and/or 2008 to look at. They're good funds, and I like them, but OAKIX is capable of being down 40%. Could you live with that if the overall portfolio was down "only", say, 20%? And can you live with your portfolio being down 20%?
OAKBX and PRWCX... You could buy OAKBX directly from OAKMARK and transfer. There's nothing wrong with holding both, just realize that they are similar in equity composition. It's not like you're holding two entirely different fund types. Otoh, FPACX and OAKBX are very different funds.
Small allotments... I'm with Dabignip; any allotment contributes (or subtracts) SOMETHING. Idaho is also right, that you hedge against manager risk by not dumping too much into a small number of funds. The only thing is that you are ALSO looking to keep the number of funds down. Obviously, these are contradictory.
PGDIX is a different kind of fund. It's worth having (I own a small piece). How much is the question. If I were looking for income, I'd be willing to hold more of it than I do. Right now, it's a supplement to my core. PRPFX I don't own. I tend to see it as a precious metals/currency play, and I get some of that with my SGIIX and IVWIX (gold), so, for me, it's a little redundant.
MAPIX... Your current allocation to it is a little high relative to your (other?) core funds. It looks as if you were chasing it a little (high) and are now thinking of bailing on it (low)? You recognize, of course, that this is exactly what you're trying to avoid. ;-)
What to do... You seem like someone who will tolerate a MAXIMUM of a 20% drawdown. It may be even lower than that since MAPIX was down maybe 10% at worst this year (now only about 5%), and you're ready to bail on it. As mentioned, I don't know that you will tolerate something like OAKIX in bad times.
Ok, so maybe you consider MACSX instead of MAPIX; or split between them. Maybe you look at SGIIX rather than OAKIX. Maybe you up your level of PGDIX and/or add TIBIX or JNBSX; JNBSX being less volatile. Maybe you look at foreign bonds instead of foreign equity: TGBAX/TTRZX, TGEIX, DBLEX. Maybe you reduce US equity in favor of multisector bonds.
I would say that a 60-40 equity/bonds&cash ratio is the MAXIMUM you'll be able to live with. 50-50 might be more realistic. You're not going to blow the doors off on rallies, but neither will you buy the farm on pullbacks.
This presupposes that you don't NEED to get double-digit growth to retire comfortably. If you DO, then you may have to tolerate the volatility, and just install a valium lick near your computer! ;-)
Try to construct your allocation based on what MAXIMUM drawdown you are willing to absorb. Choose your funds by the same criteria. You're always going to be trading off some upside in order to limit downside. If you establish the downside risk tolerance, that will also determine the upside growth potential. If the upside growth potential is insufficient, then you have to (somehow) tolerate the downside risk that comes with increasing growth potential.
EM/Asia is probably where your growth is going to come from; either directly or indirectly; so (imo) you need a presence there. For this I use MAPIX, MACSX, and MSMLX along with TGEIX, some DBLEX, and whatever TGBAX and TTRZX hold. Occasionally I'll dabble in DEM or VWO, but only short-term.
Foreign is IVWIX, SGIIX, TIBIX, a smattering of PGDIX, and my SCs: RISCX and RIVFX.
Domestic is FPACX, OAKBX, but I will also hold JABAX and PRWCX at times. I also have some AIGPX. I have bits and pieces of a number of MC/SCs, but these tend to be volatile, and I trade in and out of them. The combination you have is fine, imo, and if I was going to add, given your tolerance level, I'd probably be looking at adding to ARIVX.
I realize I'm not giving you specific advice here, but I think your immediate need is to establish some allocation guidelines for yourself before getting too specific, and I'm not sure that you have a strong investment foundation in place.