How would you redeploy this 25% cash?
floete 
07-04-2011, 5:42 AM | Post #3071970 |  105 Replies

I recently sold a few things and have 25% of my portfolio in cash.  Current holdings are as below.  (And, just in time for the turnaround, ha ha, I'm thinking of selling MAPIX down to 5% of the total.)

Anyway, given a moderate-allocation bent, how would you deploy the cash if you were a person who needs to be more-or-less buy-and-hold and greatly admires final_answer's long-term portfolio (see my shared portfolios for an approximation of his current holdings)?  Assume lump-sum investing to be done next week.  I don't really want to add more funds (except maybe lsbrx), but wouldn't mind selling anything you see (except for prpfx, which is just a piece-of-mind holding).

My current thinking is to bring my wee stake in oakbx up to around 10%, to equal my % in fpacx and prwcx.  but what about the rest of it?

P.S. I also like my shared portfolio called limo plus ...

Thanks!

 

Symbol     % of Assets     Name
ARIVX         4.92%     ASTON RIVER INDEPENDENT VAL FD CL N
FPACX         9.45%     FPA CRESCENT PORTFOLIO INSTNL SHS
HRVIX         4.82%     HEARTLAND VALUE PLUS FUND
IVWIX         6.15%     IVA WORLDWIDE FUND CL I
MAPIX         11.01%     MATTHEWS ASIA DIVIDEND FUND
OAKBX         0.03%     OAKMARK EQUITY & INCOME -CL I
PGDIX         9.01%     PRINCIPL GLBL DIV INCM I
PRPFX         5.86%     PERMANENT PORTFOLIO FUND
PRWCX         8.96%     T ROWE PRICE CAP APPR FD
TGBAX         11.00%     TEMPLETON INC TR GLB BD
WSCVX         4.47%     WALTHAUSEN SMALL CAP VALUE FD

105 Replies
Re: How would you redeploy this 25% cash?
07-15-2011, 5:51 AM | Post #3077847
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hmmm, maybe it's not such a good fund for me after all; seems kind of gunslingerish.

Re: How would you redeploy this 25% cash?
07-14-2011, 4:58 PM | Post #3077637
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At a quick glance, JSTIX looks pretty good. 

dtconroe

Re: How would you redeploy this 25% cash?
07-14-2011, 4:57 PM | Post #3077633
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JSTIX looks like a very good multisector bond fund, which holds roughly 1/2 US corporate and 1/2 international debt.  Has good yield and ER less than 0.5%.  It is also a bit more volatile than PONDX/PONPX. 

From M* fund report:

"This fund's 2008 showing might lead one to think that it is among the multisector group's tamer offerings. While it lost 11%, it came out ahead of three fourths of its peers, thanks in part to a relatively high-quality bias. The fund also avoided of some of that year's biggest losers, including subprime mortgage-backed bonds.

However, a quick look at the portfolio today shows plenty of firepower. Lead manager Dan Janis started to add to the fund's position in lower-rated bonds in 2007, a move that accelerated in the aftermath of the credit crisis. Today the fund dedicates half of its assets to junk bonds, including a 13% stake in below-B rated fare that is twice the group norm. Janis has also sharply reduced the fund's stake in U.S. government debt; indeed, the fund has taken a 11% short position against the 10-year U.S. Treasury."

Do your due diligence to determine if this is a good fit for you, your investment objectives, and your other investment allocations.

Best,

DB

 

Re: How would you redeploy this 25% cash?
07-14-2011, 2:02 PM | Post #3077494
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me too.  i spend a lot of time trying to ignore ... not that it does me any good.

meanwhile, i've found a pretty good replacement fund for some of those funds i can't get: JSTIX, john hancock strategic income.  have a look.  just keeps on chugging along, did okay in 08, done ok since, not too volatile, has bested vwinx over 1/3/5 years.  only one message about it here on the board, don't know why, because it looks swell to me.  what do you think?

stated min is 250k but a test trade in my IRA at WT looked like it would go through ...

Re: How would you redeploy this 25% cash?
07-14-2011, 6:24 AM | Post #3077275
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floete:

now worrying that tiny tim's gloomy july 14 prediction will come true.  ugh. 

floete - Don't worry, be happy!  ;-) 

Seriously though, I no longer stress about the "flavor of fear" for the day.  I have proven to myself my relative inability to time the market, so will greatly reduce my "ins and outs."  It seems that the market shoots up or drops suddenly with little forewarning, only to reverse course nearly as quickly. 

I am trying to ignore these short term variations and to focus instead on the longer term by putting together a portfolio of (mostly) above-average, favorable risk/reward, actively managed funds for long-term portfolio holdings. 

Just my two cents worth,

DB

Re: How would you redeploy this 25% cash?
07-14-2011, 5:45 AM | Post #3077266
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update (just to get total posts to 100, in case no one else does it for me): turns out you can buy pondx at Scottrade.  i had enuf cash there to fill 2/3 of my intended position.  good enuf for the moment!  maybe use lsbdx at WT.  already own DLENX now.  thanks all for your help and handholding along the way. now worrying that tiny tim's gloomy july 14 prediction will come true.  ugh. 

Re: How would you redeploy this 25% cash?
07-13-2011, 4:53 PM | Post #3077001
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"maybe all the money i was going to put into JNBSX and PONwhatever, i should just put into VWINX and call it a day.  baring that, any other suggestions from ya'll?"

I would consider LSBDX and DLENX.  Probably will get more total return out of these two funds than VWINX.  Unless WT has closed the door on these funds recently, I was able to buy both of these in recent weeks.

dtconroe

Re: How would you redeploy this 25% cash?
07-13-2011, 2:08 PM | Post #3076883
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Hmmm...  They're not making it easy for you, floete!  Looks like WT is closing all the loopholes, and TOS may not be far behind...

VWINX isn't a bad way to go; it would just be nice to get the global exposure.

Re: How would you redeploy this 25% cash?
07-13-2011, 12:16 PM | Post #3076802
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jeeezus h cripes on a crutch:

now WT tells me they no longer offer either PONPX *or* PONDX in IRAs ... though for 1 mil I can buy PONPX in my regular account.

seems like what you can buy and can't buy at WT changes weekly, if not hourly.  it's getting really frustrating.  first no jnbsx, now no PON.  ugh.

maybe all the money i was going to put into JNBSX and PONwhatever, i should just put into VWINX and call it a day.  baring that, any other suggestions from ya'll?

Re: How would you redeploy this 25% cash?
07-12-2011, 6:23 PM | Post #3076403
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DB:"You are correct, dt. I was looking at the 5-year chart, which includes the last 4 years of JNBSX. Thanks for catching the error. I have  corrected the offending post."

DB,

I am not offended in any way.  I really respect and appreciate your investing expertise, and frankly I am considering adding VWINX back into my portfolio when I retire for the very reasons you have listed--so keep on posting, and I will keep on reading!

dtconroe

Re: How would you redeploy this 25% cash?
07-12-2011, 2:56 PM | Post #3076278
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dtconroe:

JNBSX has not been in existence 5 years. 

You are correct, dt.  I was looking at the 5-year chart, which includes the last 4 years of JNBSX.  Thanks for catching the error.  I have corrected the offending post.

Regards,

DB

Re: How would you redeploy this 25% cash?
07-12-2011, 2:48 PM | Post #3076275
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floete:

 

yeah but if i blow it now, what'll i use to pay for a better-n-average nursing home?  or to leave my daughter and gf?

   my current plan is to make an early final-exit stage left as soon as my quality of life degrades to some certain as-yet-undetermined level.  but what if i suddenly find religion?  or forget my plans?

 

 

I don't plan to save, nor am I ever going to save for a future stay in a Nursing Home. I'll take a long walk off a short pier before I ever reach that point!

I'm growing tired of all this saving, analyzing, watching the markets, worrying about portfolios, and financial planning crap. You guys ever get burned out with this dry stuff??! My goal is to enjoy my hard-earned money, have fun, travel, blow it on lots of wild women, not horde it, and die broke! (If I'm broke before I die...? So be it. It was fun while it lasted, LOL!)

I'll be out there on my Pontoon boat, racing Limoman!

Re: How would you redeploy this 25% cash?
07-12-2011, 1:45 PM | Post #3076242
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"i tried five figures at both WT and Scottrade and both trades were rejected for being too small."

Sorry, I was not aware that WT had tightened up on that fund.  If you want to use VWINX, you may want to consider supplementing VWINX with a fund like LSBDX or DLENX to give it more of the JNBSX flavor of yield and greater potential total return.  I have recently purchased both LSBDX and DLENX at WT for rather small amounts in my IRA.  Also, LSGBX may be available through WT as a good world bond fund, but I have not tried to purchase it there.

dtconroe

Re: How would you redeploy this 25% cash?
07-12-2011, 12:16 PM | Post #3076202
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i tried five figures at both WT and Scottrade and both trades were rejected for being too small.

Re: How would you redeploy this 25% cash?
07-12-2011, 12:14 PM | Post #3076199
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"Okay, but where can an avg investor w/ fffffar less than $1 mil to put into any one fund even buy JNBSX anymore?  AFAIK, not at WT or Scottrade.  That being the case, at least for me, i don't have the option to buy JNBSX even if I wanted to, which is why I'm casting about for alternatives.  So then the question becomes, where should I put the money heretofor earmarked for JNBSX?  Near as I can tell, WVINX is not a bad choice, esp since I'd rather go less volatile than more, all things being equal"

I bought JNBSX at WT earlier this year for 5 figures in an IRA, and have added to it several times since then.  Has someone tried and failed recently to buy it at WT?  No doubt that VWINX is easier to buy but it basically is a 65% traditional bond fund with about 35% in well known equities.  I was striving for a world allocation fund with a decent yield, and this Income Builder fund appeared to be a more conservative version of IVWIX and TIBIX.  I never bought it to be a VWINX or TRRIX fund.  If you are looking for a fund that is a heavy US Bond oriented fund, then you could also look at funds like EXDAX, GLRBX, that are also very conservative and more traditional allocation funds that do very well in recessions and steep corrections.

dtconroe

Re: How would you redeploy this 25% cash?
07-12-2011, 9:56 AM | Post #3076130
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yeah but if i blow it now, what'll i use to pay for a better-n-average nursing home?  or to leave my daughter and gf?

   my current plan is to make an early final-exit stage left as soon as my quality of life degrades to some certain as-yet-undetermined level.  but what if i suddenly find religion?  or forget my plans?  or?

   so save i must, no matter that it'll probably be whisked away from me by some left-field occurance and it will all be for naught anyways.

  sheesh, limo, you've really put me in a mood!

  RB: I believe it stands for 'make as much as you can,' either that or 'mooch and mooch all you can' but i'll let limo have the last word on that.

 

Re: How would you redeploy this 25% cash?
07-12-2011, 8:27 AM | Post #3076084
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As of today VWINX is out performing TR week, monthly, three month, YTD better than  90+% of all my other Mutual Funds. I don't think one can go wrong with holding this fund LT starting at any age. Just my 2 cents. This is also the one fund I told my wife to hold once I'm no longer able to take care on my own portfolio.

Carlos

Re: How would you redeploy this 25% cash?
07-12-2011, 8:25 AM | Post #3076083
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thanks again all!

meanwhile, dt sez: "If you want a heavy bond oriented fund, with a rather average yield, that will do well in downmarkets, VWINX is clearly the safer fund.  If you want a more world allocation fund, with a yield over 5%, that will do better in recoveries,  then I would choose JNBSX.  VWINX is a good choice for a very conservative investor who does not stress yield.  However, if you are more of a world allocation investor who wants some yield, I would choose JNBSX."

Okay, but where can an avg investor w/ fffffar less than $1 mil to put into any one fund even buy JNBSX anymore?  AFAIK, not at WT or Scottrade.  That being the case, at least for me, i don't have the option to buy JNBSX even if I wanted to, which is why I'm casting about for alternatives.  So then the question becomes, where should I put the money heretofor earmarked for JNBSX?  Near as I can tell, WVINX is not a bad choice, esp since I'd rather go less volatile than more, all things being equal.

Re: How would you redeploy this 25% cash?
07-12-2011, 6:25 AM | Post #3076029
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"I just wanted to point out that even though JNBSX is much more aggressive and global, VWINX has delivered slightly better returns over 3 and 5 years with significantly lower volatility."

JNBSX has not been in existence 5 years.  It started May of 2007 and immediately got clobbered in 2008.  Because of its more aggressive asset mix, it did not do as well in 2008 as the more stodgy VWINX with its higher percentage of safer US bonds.  In the two full rebound years of 2009 and 2010 JNBSX significantly outperformed VWINX, largely because of the same asset differences that helped VWINX do well in the meltdown 2008.  If you want a heavy bond oriented fund, with a rather average yield, that will do well in downmarkets, VWINX is clearly the safer fund.  If you want a more world allocation fund, with a yield over 5%, that will do better in recoveries,  then I would choose JNBSX.  VWINX is a good choice for a very conservative investor who does not stress yield.  However, if you are more of a world allocation investor who wants some yield, I would choose JNBSX.  Apples and Oranges with very different asset mixes.

dtconroe

Re: How would you redeploy this 25% cash?
07-12-2011, 5:39 AM | Post #3076026
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BigLuke:

 Start buying, fellas! And you can start with Europe! :-)))

I bought yesterday and am buying more today.

Best,

DB

Re: How would you redeploy this 25% cash?
07-12-2011, 5:21 AM | Post #3076023
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dtconroe:

DB,

You are right.  I should not have brought other funds into the discussion.  I edited my post to take out references to irrelevant funds.  However, they are not similar funds.  They have very different assets and very different investing objectives.  I consider JNBSX more of a world allocation fund because of its foreign assets whereas VWINX has minimal foreign investments and is much more oriented to US equities and bonds

No worries, dt.  I agree that JNBSX and VWINX are very different funds - no qualms there.  I just wanted to point out that even though JNBSX is much more aggressive and global, VWINX has delivered slightly better returns over 3 and 5 (Edit) 4 years with significantly lower volatility.

Best,

DB

Re: How would you redeploy this 25% cash?
07-12-2011, 12:15 AM | Post #3075992
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Dabignip:
BigLuke:

 With the world's economics about ready to fall apart?

When I am hearing fearful statements like this, I am encouraged to buy more equities.

 

 

 

Start buying, fellas! And you can start with Europe! :-)))

Or... you may want to wait until we reach the Bill Gross prediction of: DOW 5,000  Ha ha ha ha

Seriously, if I was a young 25-yr old whippersnapper again, I would be buying, too. But I'm retired, have no or very little need to take risk, and I'm in the capital preservation mode.

Best of luck to you.

VWINX compared to JNBSX
07-11-2011, 9:57 PM | Post #3075962
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DB,

You are right.  I should not have brought other funds into the discussion.  I edited my post to take out references to irrelevant funds.  However, they are not similar funds.  They have very different assets and very different investing objectives.  I consider JNBSX more of a world allocation fund because of its foreign assets whereas VWINX has minimal foreign investments and is much more oriented to US equities and bonds

dtconroe

Re: Re: How would you redeploy this 25% cash?
07-11-2011, 8:46 PM | Post #3075911
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"When I am hearing fearful statements like this, I am encouraged to buy more equities."

-----------------------------------------------------

DB,

You're not only richer than the Trumpster, you're smarter too :)

Seriously, pessimistic attitudes just ring my buy bell. With forum members saying such things, my little bell turned into grandfather clock. And I will not bet against the fed - never! With zero - 2 % CD's..where are the 10,000 daily retirees going to place their money? High yielding domestic stocks and bonds

Re: How would you redeploy this 25% cash?
07-11-2011, 6:53 PM | Post #3075864
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BigLuke:

With the world's economics about ready to fall apart?

When I am hearing fearful statements like this, I am encouraged to buy more equities.

@dt: not quite sure how a discussion of JNBSX vs. VWINX morphed into comparisons with LSBDX, but VWINX has produced virtually the same total return as JNBSX over the long haul with much less volatility - CHART

DB

Re: How would you redeploy this 25% cash?
07-11-2011, 6:22 PM | Post #3075854
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"Probably VWINX - Vanguard Wellesley.Good suggestion - VWINX actually has better risk/reward characteristics than JNBSX (though VWINX provides significantly less international equity exposure)."

I disagree with this opinion in several ways. VWINX is a conservative allocation fund, that stresses very different kind of equities and bonds than JNBSX.  JNBSX is an Income Builder Fund, that has much heavier emphasis on foreign equities than VWINX.  JNBSX produces a much higher yield than VWINX.  There are few similarities in these funds.  I use JNBSX as a much more volatile fund, that is really more like a world allocation fund like IVWIX, and it focuses on yield much more than VWINX.  JNBSX will use a much greater mix of equities and bonds than VWINX.

There are pros and cons of JNBSX vs. VWINX, but they are as different as two "conservative allocation" funds as is possible.  I consider VWINX as a much more conservative fund and JNBSX as a much more aggressive fund. 

dtconroe

Re: How would you redeploy this 25% cash?
07-11-2011, 5:06 PM | Post #3075806
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With the world's economics about ready to fall apart?

I think I'd just put that money into a CD for awhile... or spend it on a nice vacation/trip.

Re: How would you redeploy this 25% cash?
07-11-2011, 5:04 PM | Post #3075804
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theShadow:

Probably VWINX - Vanguard Wellesley.

Good suggestion - VWINX actually has better risk/reward characteristics than JNBSX (though VWINX provides significantly less international equity exposure).

Disclosure:  I hold both funds

Best,

DB

Re: How would you redeploy this 25% cash?
07-11-2011, 3:18 PM | Post #3075757
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floete:

btw/ can i not buy JNBSX at either WT or Scottrade for less than $1 mil?  I tried test trades at both places, in my IRA accounts, and both trades were rejected for not meeting the $1 mil min.

if i can't get it, then what's a good alternate option? (other than tibix -- a little too volatile for me ...)

WT is gradually tightening things up, I guess.  Not sure what is a comparable alternative for you, floete; sorry.

Re: How would you redeploy this 25% cash?
07-11-2011, 3:16 PM | Post #3075751
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Probably VWINX - Vanguard Wellesley.

 

Re: How would you redeploy this 25% cash?
07-11-2011, 12:05 PM | Post #3075667
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btw/ can i not buy JNBSX at either WT or Scottrade for less than $1 mil?  I tried test trades at both places, in my IRA accounts, and both trades were rejected for not meeting the $1 mil min.

if i can't get it, then what's a good alternate option? (other than tibix -- a little too volatile for me ...)

Re: How would you redeploy this 25% cash?
07-09-2011, 10:12 PM | Post #3075023
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indoremp:

where  do you TGBAX ?

I think it is still available at ThinkorSwim.

Re: Re: How would you redeploy this 25% cash?
07-09-2011, 7:30 PM | Post #3074961
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where  do you TGBAX ?

Re: How would you redeploy this 25% cash?
07-09-2011, 9:58 AM | Post #3074745
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wow.  thanks, all.  okay, i'm convinced this is a good way to go -- and that i haven't suckered myself into buying the next hyped-up and/or souped-up cgmfx / fairx / narfx / bridgeway aggressive, as i have done to myself in the past.

as per the bond discussion, i have retooled things slightly, to add pondx.  the way it stands now, i'll wind up with 8% in both TGBAX and TGEIX and 4% in both DLENX and PONDX.  I guess I'm taking a little more risk by keeping TGEIX at 8% but I think I have to do it.

To make all this happen and work out, given where my money is in IRA and regular accounts, I will have to sell my 2% stake in WSCVX, which I don't think I'll miss.

If all goes according to plan, and I haven't fudged the math, I will be left w/ $13,000 uninvested in my Scottrade regular account, which currently holds arivx, fpacx, hrvix, and oakbx.  maybe i'll just toss it into oakbx and call it a day.

Thanks again!

Re: How would you redeploy this 25% cash?
07-09-2011, 6:39 AM | Post #3074633
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DB: "I honestly don't think you need any LSBDX in your portfolio, as it is quite volatile and behaves more like equities than bonds (you'll get enough volatility with EM bonds). I hold MWTIX, which is a very good, all around intermediate bond fund (low min. at WT). But, if you were to add only one additional bond fund, I would recommend PONDX/PONPX (low min. at WT), which is an excellent multisector bond fund with much better risk/reward characteristics than LSBDX."

I think those are good suggestions.  MWTIX is much more of a core intermediate bond holding if you are interested in a more conservative bond fund.  LSBDX is one of the more aggressive multisector bond funds, and it definitely will perform more like equities than most bond funds.  PONDX/PONPX is a solid and more conservative multisector bond fund that is very flexible.  I use both MWTRX and PONPX in my portfolio as more core bond holdings.  I use LSBDX as a yield producing, aggressive multisector bond fund, as a substitute for an equity fund.  I think you have to decide what purpose you want bond funds to perform in your portfolio. When you posted this thread, I was under the impression that your interest in bond funds was on the aggressive side, but I may have misinterpreted your interests in bonds.

dtconroe

Re: How would you redeploy this 25% cash?
07-09-2011, 5:37 AM | Post #3074620
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Idaho73:

In my opinion, you don't need two EM bond funds. Drop the TCW and keep the doubleine - Replace the TCW with MWTRX for more diversity. Other than that, you're golden!!

I hold both TGEIX and DBLEX (2:1 ratio), with TGEIX being the better performer.  I like holding both to diversify manager risk/strategy/currency/etc. 

I agree with Idaho that more bond diversification may be in order.  For that purpose, you may want to consider re-allocating bond holdings to include another bond fund.

I honestly don't think you need any LSBDX in your portfolio, as it is quite volatile and behaves more like equities than bonds (you'll get enough volatility with EM bonds).  I  hold MWTIX, which is a very good, all around intermediate bond fund (low min. at WT).  But, if you were to add only one additional bond fund, I would recommend PONDX/PONPX (low min. at WT), which is an excellent multisector bond fund with much better risk/reward characteristics than LSBDX.

CHART

Best,

DB

Re: How would you redeploy this 25% cash?
07-09-2011, 5:19 AM | Post #3074619
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d
Re: How would you redeploy this 25% cash?
07-08-2011, 8:32 PM | Post #3074491
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Floete,

If you decide you want to add the LSBRX fund, I was able to purchase it in the LSBDX class at WT--better ER and I was able to purchase it directly online for less than the stated minimum in an IRA.

dtconroe

Re: How would you redeploy this 25% cash?
07-08-2011, 8:18 PM | Post #3074485
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"I'm impressed!! Just one fast opinion before you're crowned king fast learner - In my opinion, you don't need two EM bond funds. Drop the TCW and keep the doubleine - Replace the TCW with MWTRX for more diversity. Other than that, you're golden!!"

I might choose to replace TGEIX with the LSBRX fund for a different kind of aggressive bond fund with equity like returns.  I hold MWTRX, and I consider it a very good fund, and probably does a good job of balancing out a portfolio, but I consider it more of a core conservative bond holding, and I am not sure that is what you are looking for.

dtconroe

Re: How would you redeploy this 25% cash?
07-08-2011, 8:13 PM | Post #3074482
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"my major concern is that what i've done is concoct a portfolio that is mostly all flavor of the month. almost every fund in my list is highly favored by those here (i've read a gadzillion posts in the past few days) and, consequently, it kind of represents the herd and herd thinking. but i don't know any way around it, do you?"

Everybody has their favorite funds, but I think you have picked funds that are more than just current hot funds.  They have some qualities that suggest they can adjust and change to varying market conditions.  Everyone can pick at a portfolio based on their personal opinions, but I think you have a nice core of good funds, and you can fiddle with it around the fringes if you want to improve or adjust it in some ways.

Just my opinion.

dtconroe

Re: How would you redeploy this 25% cash?
07-08-2011, 8:10 PM | Post #3074481
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floete:

kay, have a look at shared porfolio called '7/8 next try'.  what about that as a portfolio?  Yeah, yeah, I know, the whole simplification and fund-reduction concept flew right out the window in a big way.  Sigh.  What can you do?

btw/ how do you all cut and paste all that info into a message?  i tried to do it about ten ways from Sunday and only got the mess you see below.  And I never did figure out how to c-and-p the portfolio as a whole.

Thanks!

Asset Allocations   Portfolio  Cash 12.66  U.S. Stocks 32.24  Foreign Stocks 16.19  Bonds 32.76  Other 6.15  Not Classified 0.00 Stock Style Diversification 18 17 15 13 12 7 8   7   3
U.S. & Canada 68.10 Europe 10.66 Japan 6.36 Latin America 0.29 Pacific Rim 13.92 Other 0.67 Not Classified 0.00

I'm impressed!! Just one fast opinion before you're crowned king fast learner - In my opinion, you don't need two EM bond funds. Drop the TCW and keep the doubleine - Replace the TCW with MWTRX for more diversity. Other than that, you're golden!!

Re: How would you redeploy this 25% cash?
07-08-2011, 6:24 PM | Post #3074435
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floete:

my major concern is that what i've done is concoct a portfolio that is mostly all flavor of the month.  almost every fund in my list is highly favored by those here (i've read a gadzillion posts in the past few days) and, consequently, it kind of represents the herd and herd thinking.  but i don't know any way around it, do you?

You've done the heavy lifting by figuring out your ratios and diversifying your holdings based on your assessment of your risk tolerance and personal needs.  You've picked good funds with many proven managers from fund families that have served their investors well over time.  What's the alternative to picking funds that people like; picking funds NO ONE likes?!  ;-) 

I think it's also worth noting that "the herd" here is a cut above average, and that no one has encouraging you to jump into this month's "hot" funds.  You've got mostly low-volatility funds that have good records for grinding out acceptable gains over time.  You've got maybe two to three funds that are somewhat volatile and a couple with short track records.  You haven't concentrated your purchases in one or two funds or limited yourself to a single fund family philosophy.  That's all anyone can reasonably do to protect himself!  I think you'll be happy with what you've chosen.

floete
07-08-2011, 5:12 PM | Post #3074390
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.........

Re: How would you redeploy this 25% cash?
07-08-2011, 4:01 PM | Post #3074334
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thanks.  lsbrx isn't in there ... yet.  i'm still pondering.

racq: i guess i'm hoping to get a little more reward by taking a little more risk.  i made it through 08 okay (mostly by not looking at my portfolio, cgmfx, et al) and hopefully i could do the same in the future.

my major concern is that what i've done is concoct a portfolio that is mostly all flavor of the month.  almost every fund in my list is highly favored by those here (i've read a gadzillion posts in the past few days) and, consequently, it kind of represents the herd and herd thinking.  but i don't know any way around it, do you?

thanks again.

Re: How would you redeploy this 25% cash?
07-08-2011, 2:52 PM | Post #3074288
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Looks decent, floete.  About 50-50 equity/bonds&cash, but is likely to behave more like 60-40 given your bond choices. 

You're still 2:1 US:foreign, but a lot of your foreign is Pacific Rim, which I think is wise.  At some point, you may want to reconsider that overall 2:1 ratio, but for now, I would say that it is reasonable given Europe's financial woes. 

You've now got a very healthy MC/SC allocation.  I'm not sure what the US/foreign breakdown is on that?

I would caution you, though, that what you have here is NOT going to behave like a 50-50, mostly LC, equity/bonds&cash mix.  Where a more traditional 50-50 mix would likely give you a potential drawdown of less than 20% in bear; this mix is likely to be more like 20-30%.  That's with "the market" drawing down near 50%.  I'm just telling you this so your expections for the portfolio are reasonable.

Overall, it looks pretty good to me...

Re: How would you redeploy this 25% cash?
07-08-2011, 2:42 PM | Post #3074281
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Looks like a nice portfolio.  I am not familiar with a few of the funds, but those I am familiar with are pretty solid funds.  Doesn't look like LSBRX made the final cut?

Good luck,

dtconroe

Re: How would you redeploy this 25% cash?
07-08-2011, 2:23 PM | Post #3074270
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kay, have a look at shared porfolio called '7/8 next try'.  what about that as a portfolio?  Yeah, yeah, I know, the whole simplification and fund-reduction concept flew right out the window in a big way.  Sigh.  What can you do?

btw/ how do you all cut and paste all that info into a message?  i tried to do it about ten ways from Sunday and only got the mess you see below.  And I never did figure out how to c-and-p the portfolio as a whole.

Thanks!

Asset Allocations   Portfolio  Cash 12.66  U.S. Stocks 32.24  Foreign Stocks 16.19  Bonds 32.76  Other 6.15  Not Classified 0.00 Stock Style Diversification 18 17 15 13 12 7 8   7   3
U.S. & Canada 68.10 Europe 10.66 Japan 6.36 Latin America 0.29 Pacific Rim 13.92 Other 0.67 Not Classified 0.00

Re: How would you redeploy this 25% cash?
07-07-2011, 6:53 PM | Post #3073879
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thanks all.  i sold a few percent of tgabx and put it into tgeix; hopefully that'll work out for the better ...

Re: How would you redeploy this 25% cash?
07-07-2011, 5:19 PM | Post #3073838
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floete:

quick question:

per dabignip's suggestion, i was going to exchange TGBAX for TTRZX.  come to find out, though, that wellstrade doesn't offer TTRZX.  argggg!  so, are there any equivalents to TTRZX for that tiny little extra bit of oomph over TGBAX?  if not, TGBAX will be fine w/ me, though i might sell off a little bit to add to my new position in tgeix.

Sorry, floete.  Last I checked TTRZX was available, but that's how it's been with WT ever since they merged with Wachovia - funds are there one day and gone the next.  TGBAX is an excellent fund and will do you well.

Regards,

DB

Re: How would you redeploy this 25% cash?
07-07-2011, 5:03 PM | Post #3073833
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nobhead:

 

The last I read was that TGBAX is hold and sell only at Wellstrade. If you sell some, you may not be able to buy more.

I may be wrong but I read it on the M* boards about 1 month ago.

Correct.  TGBAX and TTRZX are hold or sell at WT.  TTRZX is currently available at TOS, likely through July.  But keep in mind, it is not available on the TDA platform. So, after the merge it is an unknown.  It may be hold or sell, or we may be forced to sell funds that are not available on the TDA platform.

Diane

Re: How would you redeploy this 25% cash?
07-07-2011, 4:53 PM | Post #3073827
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floete:

quick question:

per dabignip's suggestion, i was going to exchange TGBAX for TTRZX.  come to find out, though, that wellstrade doesn't offer TTRZX.  argggg!  so, are there any equivalents to TTRZX for that tiny little extra bit of oomph over TGBAX?  if not, TGBAX will be fine w/ me, though i might sell off a little bit to add to my new position in tgeix.

thanks!

The last I read was that TGBAX is hold and sell only at Wellstrade. If you sell some, you may not be able to buy more.

I may be wrong but I read it on the M* boards about 1 month ago.

Re: How would you redeploy this 25% cash?
07-07-2011, 2:57 PM | Post #3073730
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quick question:

per dabignip's suggestion, i was going to exchange TGBAX for TTRZX.  come to find out, though, that wellstrade doesn't offer TTRZX.  argggg!  so, are there any equivalents to TTRZX for that tiny little extra bit of oomph over TGBAX?  if not, TGBAX will be fine w/ me, though i might sell off a little bit to add to my new position in tgeix.

thanks!

Re: How would you redeploy this 25% cash?
07-07-2011, 9:56 AM | Post #3073567
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"I guess we also have to mention that Taylor doesn't consider the two funds to be equivilently "income-building"; something about JNBSX being for "later" investing?  I'm a little fuzzy on his reasons for the distinction, but he knows more about this stuff than I do, so I'm inclined to defer to him on that."

Racq,

I have no interest in Taylor's opinions and have him on "ignore" and do not read any of his posts, but I do appreciate your opinions. 

dtconroe

Re: How would you redeploy this 25% cash?
07-07-2011, 8:03 AM | Post #3073486
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Racqueteer:

GtrHtr:

My instinct is that TIBIX has learned its lessons from 08 and I think starting a position to build will pay off in 10 years. 

There was no lesson to learn...  Income-builder funds HAVE to be invested in financials for the yield, and they have to RETAIN those investments, regardless of short-term conditions for the same reason.  Financials are usually safe-havens; in 2008, they were not.  This is a fact that you have to accept if you are going to use income-builder funds in your portfolio.

I think that the financials collapse in 2008 was an anomaly that is unlikely to repeat (to the same degree).  If you're in it for the income, TIBIX is going to keep paying it out reliably.  If you're in it for total return, then you need to keep an eye on it.  While TIBIX (and other funds like it) can't shed financials, YOU can, by reducing exposure to the fund.

Raq,

I think you made my point better than my brief statement.  I think JNBSX has lower downside risk, but for my purposes, TIBIX meets my requirements.

Re: How would you redeploy this 25% cash?
07-07-2011, 7:15 AM | Post #3073472
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dtconroe:

Racq: "There was no lesson to learn... Income-builder funds HAVE to be invested in financials for the yield, and they have to RETAIN those investments, regardless of short-term conditions for the same reason. Financials are usually safe-havens; in 2008, they were not. This is a fact that you have to accept if you are going to use income-builder funds in your portfolio."

Racq,

JNBSX (JP Morgan Income Builder Select) only has 13% in financials according to the M* Portfolio detail.  It has 48% in bonds, and its portfolio is significantly different than TIBIX.  Am I missing something about this Income Builder fund since it does not appear to be heavily invested in financials?

dtconroe

I don't know that you're necessarily missing anything, dt, but I'm using the term "financials" in the broader sense.  Perhaps I should simply say dividend-generating assets.  ;-)

When the financial market collapsed in 2008, it took down everything but safe haven bonds (US Treasuries) and foreign sovereign debt.  Considering its much lower equity stake, JNBSX took a pretty good hit in 2008 also; 25% vs. 34%.

I guess we also have to mention that Taylor doesn't consider the two funds to be equivilently "income-building"; something about JNBSX being for "later" investing?  I'm a little fuzzy on his reasons for the distinction, but he knows more about this stuff than I do, so I'm inclined to defer to him on that.

Re: How would you redeploy this 25% cash?
07-07-2011, 6:33 AM | Post #3073462
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Racq: "There was no lesson to learn... Income-builder funds HAVE to be invested in financials for the yield, and they have to RETAIN those investments, regardless of short-term conditions for the same reason. Financials are usually safe-havens; in 2008, they were not. This is a fact that you have to accept if you are going to use income-builder funds in your portfolio."

Racq,

JNBSX (JP Morgan Income Builder Select) only has 13% in financials according to the M* Portfolio detail.  It has 48% in bonds, and its portfolio is significantly different than TIBIX.  Am I missing something about this Income Builder fund since it does not appear to be heavily invested in financials?

dtconroe

Re: How would you redeploy this 25% cash?
07-07-2011, 6:15 AM | Post #3073457
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"Strange, just this evening I was able to successfully enter an online trade for DBLEX at WT in a Roth IRA for the fund minimum of $5K (just to see if it was still available for low minimum), then I cancelled it. Were you able to enter the trade but it was never filled?"

I was working with a Traditional IRA, not a Roth IRA.  When I entered the online order for $10,000, an error message popped up saying that this transaction could not be executed online and that I had to call for assistance.  When I did, the trader checked with the Fund Desk and said that DBLEX was not available to me, but that DLENX was.  So, I ordered DLENX instead.  I cannot even process DLENX online in a traditional IRA--I get the same error message, but when I contact the trader, they will process the order for me without charge.   This occurred yesterday with a $30,000 order of DLENX in a Traditional IRA. 

Maybe the Roth IRA is the key, since I do not have a Roth IRA account in WT, just a Traditional IRA account. Thanks for the information.

dtconroe

Re: How would you redeploy this 25% cash?
07-07-2011, 6:03 AM | Post #3073455
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Dabignip:

dtconroe:

Interesting, I tried to purchase DBLEX at WT just a few weeks ago for my traditional IRA, would not go through directly online, talked to the trader who said that fund was not available to me.  I inquired about DLENX, and he said that class was available.

Was this in a Roth or Traditional IRA, and was that within the last few weeks that you got it?

Strange, just this evening I was able to successfully enter an online trade for DBLEX at WT in a Roth IRA for the fund minimum of $5K (just to see if it was still available for low minimum), then I cancelled it.

Were you able to enter the trade but it was never filled?

DB

DBLEX is also available at TOS...

Re: How would you redeploy this 25% cash?
07-07-2011, 6:00 AM | Post #3073454
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GtrHtr:

My instinct is that TIBIX has learned its lessons from 08 and I think starting a position to build will pay off in 10 years. 

There was no lesson to learn...  Income-builder funds HAVE to be invested in financials for the yield, and they have to RETAIN those investments, regardless of short-term conditions for the same reason.  Financials are usually safe-havens; in 2008, they were not.  This is a fact that you have to accept if you are going to use income-builder funds in your portfolio.

I think that the financials collapse in 2008 was an anomaly that is unlikely to repeat (to the same degree).  If you're in it for the income, TIBIX is going to keep paying it out reliably.  If you're in it for total return, then you need to keep an eye on it.  While TIBIX (and other funds like it) can't shed financials, YOU can, by reducing exposure to the fund.

Re: How would you redeploy this 25% cash?
07-07-2011, 3:20 AM | Post #3073435
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That is a higher overlap than normal, but by holding I don't have a huge problem with it.  The MSFT overlap is consistant and the one that worries me the most.

Overall though, you'd think the overlap % would be much higher.  I keep a close eye on it, and think anyone holding both should.

Re: How would you redeploy this 25% cash?
07-06-2011, 9:39 PM | Post #3073365
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For those that "think" there is minimal overlap between FPACX and IVWIX, consider the following -

Overlaping equities in the first 25 of each fund and percentage held - Equity - IVWIX%, FPACX%:

  • AON - 1.41%, 3.98%
  • Microsoft - 2.70%, 2.21%
  • Total SA - 2.54%, 1.21%
  • HP - 2.40%, 1.30%
  • Wal-Mart - 2.09%, 2.93%

For IVWIX - 11.14% overlaps with FPACX's 11.63%

 

Re: How would you redeploy this 25% cash?
07-06-2011, 9:38 PM | Post #3073364
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dtconroe:

Interesting, I tried to purchase DBLEX at WT just a few weeks ago for my traditional IRA, would not go through directly online, talked to the trader who said that fund was not available to me.  I inquired about DLENX, and he said that class was available.

Was this in a Roth or Traditional IRA, and was that within the last few weeks that you got it?

Strange, just this evening I was able to successfully enter an online trade for DBLEX at WT in a Roth IRA for the fund minimum of $5K (just to see if it was still available for low minimum), then I cancelled it.

Were you able to enter the trade but it was never filled?

DB

Re: How would you redeploy this 25% cash?
07-06-2011, 9:13 PM | Post #3073352
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"Ok, Idaho - I won't tell if you won't, but DBLEX is available in IRA accounts at WT for a minimum initial purchase of $5K... ;-)"

Interesting, I tried to purchase DBLEX at WT just a few weeks ago for my traditional IRA, would not go through directly online, talked to the trader who said that fund was not available to me.  I inquired about DLENX, and he said that class was available.

Was this in a Roth or Traditional IRA, and was that within the last few weeks that you got it?

dtconroe

Re: How would you redeploy this 25% cash?
07-06-2011, 8:47 PM | Post #3073342
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GtrHtr:

I'd consider swapping out WSCVX for NSEIX to modify your SC exposure into MC.  Good performance with quarterly dividends.

I agree that NSEIX is a very good, all cap value fund throwing off a pretty good dividend yield.  My plans are to add to my current holding on the next downturn.

DB

Re: How would you redeploy this 25% cash?
07-06-2011, 8:45 PM | Post #3073341
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Idaho73:

How do you feel about their other two funds - total return, and core fixed income ? Those three are NTF at fidelity.

We're probably getting quite a bit off topic here (sorry, floete!).  But I also hold DBLTX as part of my FI allocations (see shared portfolio).  Haven't really looked at Doubleline's core fixed income fund.  In order to diversify fund companies and FI managers, I went elsewhere for additional FI allocations.

DB

Re: How would you redeploy this 25% cash?
07-06-2011, 8:27 PM | Post #3073333
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Dabignip:

Idaho73:

Shhhhh, don't tell DB because I'm looking seriously at adding DLENX. There goes that ten fund rule.. dognabbit!!

Ok, Idaho - I won't tell if you won't, but DBLEX is available in IRA accounts at WT for a minimum initial purchase of $5K... ;-)

DB

Just rub it in :)

 

Re: How would you redeploy this 25% cash?
07-06-2011, 8:04 PM | Post #3073313
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wow.  double wow.  wow wow.  so much to ponder and consider.  but p and c i'm going to do, and come back later with any questions i might have.  you all have been great with your comments and suggestions, and i really appreciate it all.  what a swell community!

Re: How would you redeploy this 25% cash?
07-06-2011, 8:03 PM | Post #3073310
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Idaho73:

Shhhhh, don't tell DB because I'm looking seriously at adding DLENX. There goes that ten fund rule.. dognabbit!!

Ok, Idaho - I won't tell if you won't, but DBLEX is available in IRA accounts at WT for a minimum initial purchase of $5K... ;-)

DB

Re: Re: How would you redeploy this 25% cash?
07-06-2011, 7:58 PM | Post #3073305
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Shhhhh, don't tell DB because I'm looking seriously at adding DLENX. There goes that ten fund rule.. dognabbit!!

How do you feel about their other two funds - total return, and core fixed income ? Those three are NTF at fidelity.

Re: How would you redeploy this 25% cash?
07-06-2011, 7:52 PM | Post #3073301
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Idaho73:

And with your sizable portfolio ( judging by your fund selection) - a portfolio that would make Donald Trump run home to mommy ... :)

LOL!!  Not hardly!  I just do my fund "shopping" at places like WT and TOS where some I-class shares can/could be obtained for very, very low minimums (in some cases for as little as $100).

Having a portfolio as you described above probably wouldn't be very good for me anyway, but a sincere thanks for the momentary dream... :-))

Best wishes,

DB

Re: How would you redeploy this 25% cash?
07-06-2011, 7:41 PM | Post #3073292
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Idaho: "Have you purchased DLENX ? I was looking over the doubleline funds and have been wondering ever since."

Hi Idaho,

Yes, I have made 3 separate purchases of it in the last month, and now have a 5% total portfolio position.  I purchased it through Wellstrade--could not self purchase online, but the traders have done it for me.  I first tried DBLEX but they would not allow me to purchase that class, but they allowed the DLENX class purchase.

dtconroe

Re: How would you redeploy this 25% cash?
07-06-2011, 7:21 PM | Post #3073284
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Dabignip:

Idaho73:

IMO, there is just no real benefit of owning much more than ten funds as long term holds.

If one is comfortable with it, holding fewer funds is just fine.

However, one real benefit of owning more funds that is important to me is the ability to get more precise sector allocations.  Another benefit is that when any one particular fund experiences a bad stretch (which they all do), my portfolio isn't as negatively impacted.  I'm happy with the average of the above-average returns of the above-average funds I invest in... ;-)

Regards,

DB

I don't think you're wrong at all. And with your sizable portfolio ( judging by your fund selection) - a portfolio that would make Donald Trump run home to mommy ..I'd have just as many if not more :)

Re: How would you redeploy this 25% cash?
07-06-2011, 7:13 PM | Post #3073281
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dt,

Have you purchased DLENX ? I was looking over the doubleline funds and have been wondering ever since.

Re: How would you redeploy this 25% cash?
07-06-2011, 2:53 PM | Post #3073163
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I don't mean this the way it sounds, but I'm not moved by OAKBX very much.  Probably just me.

I agree with the pro ARIVX comments.  I'd take a shot on it with a high degree of confidence.  I plan on adding it soon. 

I think IVWIX and FPACX go well together, not much overlap.  My instinct is that TIBIX has learned its lessons from 08 and I think starting a position to build will pay off in 10 years.  I don't consider it a core position, but a significant supporter along with AZNDX in my portfolio.  For you, AZNDX probably has too much volitility which I don't mind.

I'd consider swapping out WSCVX for NSEIX to modify your SC exposure into MC.  Good performance with quarterly dividends.

Finally, I'd put some thought into dt's bond comments, I like his plan a lot.  In fact I would consider his final paragraph a roadmap to morph your portfolio into gradually as you get closer to retirement.

Re: How would you redeploy this 25% cash?
07-06-2011, 2:16 PM | Post #3073138
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"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."

In the FWIW category, I sold MAPIX just because I prefer my EM equity within a world allocation fund.  I have purchased DLENX as a more conservative way to get EM exposure--up to about 5% now of my portfolio and doubt I will go any higher.  I own PGDIX and have been very, very pleased so far with it--very low volatility and total return that rivals IVWIX and FPACX, plus you get great yield from it.  I have never warmed to TIBIX, just too volatile and not great upside/downside capture performance.  I have chosen JNBSX as an alternative to TIBIX as it is less volatile, held up better in 2008, parallels total return performance of IVWIX, and produces great yield.  I also own TPINX.lw for more diversified global exposure. 

I was trying to keep my total portfolio with 10 funds, but I have decided that a few more than that allows me to diversify better, avoid too large of a holding in any one fund, and gives me a chance to have smaller holdings of more aggressive/risky funds with excellent management.  My investing philosophy are solid world, moderate, and conservative allocation funds (IVWIX, FPACX, PGDIX, JNBSX) combined with some multisector bond (FSICX, PONPX, LSBRX, PRSNX) and world bond funds (TPINX.lw, DLENX)that produce equity-like returns. I have a couple of more conservative bond funds just for some stability (MWTRX, PRWBX) From my review, I can get close to the total return I want with some reduced risk that is associated with a higher percentage of equities.

dtconroe

Re: How would you redeploy this 25% cash?
07-06-2011, 1:49 PM | Post #3073129
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Idaho73:

IMO, there is just no real benefit of owning much more than ten funds as long term holds.

If one is comfortable with it, holding fewer funds is just fine.

However, one real benefit of owning more funds that is important to me is the ability to get more precise sector allocations.  Another benefit is that when any one particular fund experiences a bad stretch (which they all do), my portfolio isn't as negatively impacted.  I'm happy with the average of the above-average returns of the above-average funds I invest in... ;-)

Regards,

DB

Re: Re: Re: How would you redeploy this 25% cash?
07-06-2011, 1:05 PM | Post #3073116
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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.

------------------------------------------------------------

Rac,

I, too, am attempting to limit the number of funds I own. IMO, there is just no real benefit of owning much more than ten funds as long term holds. I've chosen OAKBX, FPACX, and PRWCX as my core positions. With me it's simply the issue of manager risk - I'd like to give OAKBX or FPACX the honor of being my sole core fund, but that little bird keeps me up at night. So, it could be said that history of manager faults have kept PRWCX in my portfolio. As of today OAKBX is about 20+% of my total portfolio; however, this will change next year when I rebalace. I've decided to bring all three to equal weightings - just don't have the tax cushion this year.

TWEIX v. PRWCX... now that's one tough decision! I've got TWEIX in my rollover and PRWCX in my taxable.

 edit:

Eric Cinnamond's fund has earned my trust, so it will replace Greenspring inside my Roth account. In addition to that - Perkins value plus income will be added. I think both these funds will serve investors very well - long term.

And floete like so many will do fine once he finds his footing. He could have done much worse and invested in loaded American funds -or- worse yet.. Putnam! Just from his reading these forums and post from members like yourself or Jave provide all the fuel he needs.

 

Re: Re: How would you redeploy this 25% cash?
07-06-2011, 12:24 PM | Post #3073092
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floete:

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.

Re: How would you redeploy this 25% cash?
07-06-2011, 12:04 PM | Post #3073081
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"Near as I can see, there's nothing wrong w/ holding prwcx, oakbx, and fpacx as a trio, esp if you're ditherer like i am."

I think there are enough differences in the funds that you could make an argument for holding all 3.  I guess the question is how much of your total portfolio you want devoted to these funds.  If it prevents you from achieving some position in some other good funds in other attractive areas, that might raise some overall portfolio design questions.

dtconroe

Re: How would you redeploy this 25% cash?
07-06-2011, 12:04 PM | Post #3073080
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floete:

If, as Jave suggests, 5% of prpfx isn't going to make any real difference to my bottom line, then what's the point?  

floete:  my actual thought was that you might want to increase your stake in PRPFX, but I knew little about your investing history and how much you had researched PRPFX.  I have to disagree a bit with Racq in that while PRPFX has done well historically, a reason for going with PRPFX now is because of the future.  In a nutshell, if you believe the next ten years or so will be one of continued sovereign debt crises, currency wars and competitive devaluations, negative real interest rates that erode our earnings and purchasing power, below-trend growth with policy responses that are either inflationary or deflationary, a great deal of market volatility and uncertainty, and overall a continuation of this current secular bear market that we are in, then PRPFX can be a good hedge against macro risk as well as manager risk.  You have to be comfortable with that analysis, however, and just jumping in based on a hazy notion of what a hedge entails would not be a good rationale for buying the fund.  It is one of my largest holdings, but I didn't buy it without a great deal of thought...and initially some trepidation before I understood how it worked.

I have to agree with Idaho that ARIVX is worth it's ER for it's consistent outperformance in all down markets, along with it's very respectable performance in up markets.  Eric Cinnamond's investing style of buying low and selling high would offset your own predilection for doing the opposite.

Jave

Re: How would you redeploy this 25% cash?
07-06-2011, 11:57 AM | Post #3073075
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Thanks, bd and I73, for your further thoughts.  My portfolio isn't huge but it isn't tiny either, so I guess I'll stick with hedging my bets a little.  Near as I can see, there's nothing wrong w/ holding prwcx, oakbx, and fpacx as a trio, esp if you're ditherer like i am.

I do tend to agree w/ earlier comments that I am a little heavy in SC.  Maybe I will go ahead and cut my wscvx/hrvix holdings in half and go for something LC ... maybe even take a little doozier of a flier on sgrnx, tho that's probably hot-hand chasing to the max.

Re: Re: How would you redeploy this 25% cash?
07-06-2011, 8:19 AM | Post #3072959
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floete,

As you can see everyone has their own opinion.  Personally, I own most these funds that have been mentioned - OAKBX, PRWCX, FPACX, ARIVX, and MAPIX.

If you're dealing with larger sums of money, then hedging your bets is the best course. Many will advise you to sell one fund or another because they don't like it. Heck, just on this thread alone you've been told to sell FPACX OR PRWCX by two different posters. In my opinion, I'd look more at manager risk and hold the both of 'em. As for ARIVX - I have no issue with paying the manager his fee. I want the best risk adjusted return and the manager provides just that.  At your age and risk tolerance I think ARIVX fits better than your other small cap funds -regardless of the ER.

 

Re: How would you redeploy this 25% cash?
07-06-2011, 7:18 AM | Post #3072925
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floete:

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...

floete,

None of my holdings exceed 5% - remember that the whole is comprised of the sum of the parts.  Every holding makes a difference! (e.g. just look at the holdings of most mutual funds.  Few holdings exceed 5% and most are below 2%, yet somehow they seem to make money!).

My advice, first and foremost, is to build your portfolio to reach your target allocations by adjusting your individual holdings to fit, not vice versa. 

Secondly, don't fall in love with any of your funds.

Best,

DB

 

Re: How would you redeploy this 25% cash?
07-06-2011, 6:48 AM | Post #3072912
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TheShadow: thanks much and I will ponder your suggestions!

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.

DT: I'm still thinking about LSBRX

Jave: I sold after the correction but only because I was on haitus from work and had nothing better to do than to start looking at my portfolio and wondering why it wasn't doing as well, both up and down, as final_answers', limo's, and a few other that I track.  So then, in emotional response, I sold off my FAIRX (just in time for the turnaround, I am sure), as well as some FOCIX, just cause it wasn't looking good to me either.

I didn't get out of the market just to get out of the market but only to switch the holdings around; thus, I want to get back in asap, because otherwise I will subject myself to paralysis by analysis.

well, enough about me.  all further thoughts welcome!  (but pls be gentle ...)

Re: How would you redeploy this 25% cash?
07-05-2011, 9:36 PM | Post #3072831
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Racqueteer:

What equity/bond ratio are you trying for?  Why do you (seem to) want mostly US assets?  Are you considering reducing MAPIX because it is doing poorly at the moment, because it has a lot of Japan, because you want less Asia/EM, or is it some combination of these?  If you want a truly buy and hold portfolio, the answers to these questions are important. 

Hi floete, just adding to Racq's questions: 

What did you sell recently and why?  Did you sell before the correction to take profits?  Or during the correction because the volatility felt uncomfortable?

Why the apparent eagerness to get back into the market given that you just took a good chunk of your money out? 

If you are using PRPFX for peace of mind, why is the allocation so tiny, i.e., too small to really matter as a hedge?

All the above questions tell us readers a little bit more about your own particular investing psychology.

Jave

Re: How would you redeploy this 25% cash?
07-05-2011, 9:04 PM | Post #3072799
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Floete: "Assume lump-sum investing to be done next week. I don't really want to add more funds (except maybe lsbrx),"

In your original post, you made the statement above, but LSBRX doesn't appear to have made it into your portfolio.  I actually thought this aggressive multisector bond fund would be a good fit for you and give you a little more bond exposure in line with your age. You might want to be tilted more toward bonds than what your posted portfolios are showing--just my opinion. 

Good luck.

dtconroe

Re: How would you redeploy this 25% cash?
07-05-2011, 7:33 PM | Post #3072763
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Sorry I didn't get to respond sooner...

floete:

racq: i'm 57 and won't need income for another 10 yrs, god willing.  plus, i'm just not sure how to invest for income and would need to spend a good bit of time figuring it out before making the switch.  then again, maybe it's not too soon to add some tibix to the mix.  what do you think?

I personally like TIBIX a lot as a total return fund, and it is certainly a good income growing fund.

floete:

also: I'm not sure i understand this statement: "I think that PRPFX and PGDIX should be more garnish than steak.  ;-)  If I had to sacrifice something in favor of PGDIX and PRPFX, it would be PRWCX."  could you help me out w/ a little bit more explanation?  thanks!

I don't personally see PRPFX and PGDIX as core funds, although one could make a compelling argument for PRPFX based on past performance.  For that reason, I wouldn't have either on an equal footing with what I'd consider to be core funds.  If my core funds were the "steak", then the other two would be "garnish".

PRWCX is a LC fund that holds a small amount of bonds.  Most other traditional balanced funds (OAKBX, JABAX, for example) also hold LC equity.  For that reason, PRWCX is somewhat redundant in your portfolio if you are going to increase OAKBX.

floete:

what do you think about adding a bit more to the arivx etc scmall cap allocation?

I think you have sufficient SC exposure... IF... you are trying to be as conservative as it appears.

As I said above, your original portfolio was mostly US, LC, and what foreign you had, you planned to reduce to being largely developed markets.

What equity/bond ratio are you trying for?  Why do you (seem to) want mostly US assets?  Are you considering reducing MAPIX because it is doing poorly at the moment, because it has a lot of Japan, because you want less Asia/EM, or is it some combination of these?  If you want a truly buy and hold portfolio, the answers to these questions are important.  My advice to you was based on the assumption that you wanted to stay somewhat the same.  If that is not the case, then I need more specific information on your intentions/goals.

I can tell you what I'm doing based on a 60-40 equity/bonds&cash ratio, a roughly 50-50 US/foreign ratio, and a pretty healthy EM/Asia component, but my situation is not typical for a 60+ retiree, and my risk tolerance is pretty high.

Re: How would you redeploy this 25% cash?
07-05-2011, 11:55 AM | Post #3072528
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I took a look at the July new 2 port after following this discussion for a few days now.  Something that strikes me is the portfolio has a lot of duplication and a not well defined set of core holding or holdings.

Disclosure - No longer a fan of either FPACX nor MAPIX.  And have sold all positions I had in them.

Your portfolio core would be - OAKBX and PRWCX.  These should be your major holdings.  FPACX, UMBMX, and MAPIX should not be holding major positions.

Plus a lot of your funds are duplicating the same stock holdings so there is limited diversification.  You could drop FPACX and not miss it, other than reducing the cash portion as the same equity holdings in it show up in OAKBX, PRWCX, and IVWIX.

The same can be said about all the International holdings.  Many of them are simply duplicates of each other.  Different weightings, but the same equities.

As for ARIVX - 1.42% ER to hold 50% cash? 

I took a stab at making a simpler version.  It's shared as Floete_July2.  I dropped a lot things and put in FLPSX to cover mid and small US and International - it's at 8%.

For any additions, such as the current holdings, I would keep them at 2.5% to 4%.

Re: How would you redeploy this 25% cash?
07-05-2011, 9:58 AM | Post #3072461
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okay, have a looksee at shared portfolio 'july new 2'.  small caps are taken way down, mids are upped, japan and europe are lowered, other foreigns are higher.

Asset Allocations   Portfolio  Cash 12.63  U.S. Stocks 33.51  Foreign Stocks 23.83  Bonds 24.04  Other 6.00  Not Classified 0.00
Stock Style Diversification 20 19 17 14 12 7 6   4   2
U.S. & Canada 61.07 Europe 7.78 Japan 6.30 Latin America 4.32 Pacific Rim 18.87 Other 1.6
  Thoughts?  For one thing, I have not succeeded in simplifying or using more bal/alloc funds than before.  also, it occurs to me that maybe i could be accused to chasing hot hands here, when what i really want to do is buy stuff for the very long haul that i don't have to look at andor change but once or twice a year ....


Thoughts?
Re: How would you redeploy this 25% cash?
07-05-2011, 8:52 AM | Post #3072444
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I-73: that looks pretty sweet ... altho some might say it's a little high on exposure to europe and japan.  i'm going to mess around with stuff today, see what else i can come up with.  i do like the high % in oakbx and fpacx; that makes a lot of sense to me.

Re: Re: Re: How would you redeploy this 25% cash?
07-05-2011, 8:24 AM | Post #3072440
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floete:

'db': well, golly, gee, dagnabit :-), i don't see prwcx either.  looks like 5% oakmark intl pushed it out of the way.  but you get the drift.

looking at the portfolio, however, it seems that i've done what i had not intended to do, which is a/ expand the list of funds b/ thereby complicating matters c/ whilest getting away from my original intention of following to a greater degree the allocation/balanced-funds intention of this forum.

can you see any logical way of slimming, simplifying and using more alloc/bal funds here?

thanks again.

 

Hi floete,

I played with your portfolio ( adding/removing) funds for fun. The yield is not correct because Perkins value plus income is newer. It does provide some much needed mid cap exposure though. Here is what I came up with with my coffee sitting shotgun:

 

Instant X-Ray  Edit Holdings Instant X-Ray Help Save as a Portfolio  Overview Interpreter Intersection Asset Class Stock Style Sector Stock Type Stock Stats Fees Regions Bond Style

Asset Allocation | Holdings Detail

  Long% Short% Net%
Cash 18 -2 17
U.S. Stocks 33 0 33
Foreign Stocks 21 0 21
Bonds 23 0 23
Other 7 0 7
Not Classified 0 0 0
  Total 102 -2 100
Show Short Position
  Stock Style Diversification| Holdings Detail 20 22 17 13 8 6 7 6 2 11 0 0 25 0 0 8 43 0 Not Classified  0.00% Not Classified  13.09%
Stock Sector | Holdings Detail
    Portfolio
(% of Stocks)
S&P 500
(%)
Cyclical 29.70 28.32
Basic Materials 3.45 2.82
Consumer Cyclical 11.18 9.28
Financial Services 11.17 14.60
Real Estate 3.91 1.61
Sensitive 41.45 46.98
Communication Services 4.27 4.25
Energy 11.60 13.00
Industrials 14.67 13.02
Technology 10.90 16.71
Defensive 28.85 24.70
Consumer Defensive 15.31 10.72
Healthcare 11.38 10.86
Utilities 2.16 3.13
Not Classified 0.00 0.00
Fees & Expenses | Holdings Detail
Average Mutual Fund Expense Ratio (%) 0.99
Expense Ratio of Similarly Weighted
Hypothetical Portfolio (%)
1.40
Estimated Mutual Fund Expenses ($) 993.65
Total Sales Charges Paid ($) 0.00
 
 
Stock Type | Holdings Detail
    Portfolio
(% of Domestic Stocks)
S&P 500
(%)
High Yield 0.34 0.23
Distressed 0.60 0.67
Hard Asset 14.85 13.29
Cyclical 33.13 43.93
Slow Growth 13.51 14.80
Classic Growth 7.25 6.73
Aggressive Growth 13.98 16.15
Speculative Growth 2.30 1.98
Not Classified 14.04 2.22
World Regions | Holdings Detail
Greater Asia Americas Greater Europe
N/C 0-10 10-20 20-50 50-90 >90%
Total Exposure
(% of Stocks)
U.S. & Canada 62.97
Europe 14.85
Japan 7.92
Latin America 0.09
Asia & Australia 13.79
Other 0.38
Not Classified 0.00
 
Stock Stats | Holdings Detail
  Your Portfolio Relative to
S&P 500
    Your Portfolio Relative to
S&P 500
Price/Prospective Earnings 13.64 0.97   Projected EPS Growth - 5 yr % 11.53 1.17
Price/Book Ratio 1.79 0.85   Yield % 1.84 1.08
Return on Assets (ROA) 7.74 0.91   Average Market Cap $mil 11,557.34 0.23
Return on Equity (ROE) 17.66 0.84        
 
Top 10 Holdings | Holdings Detail
% of
Assets
  Holding Name Stock Industry/
Fund Category
Price
($)
Market Value
($)
YTD Total
Return (%)
12.50   Oakmark Equity & Inc Moderate Allocation 29.66 12,500.00 6.92
12.50   FPA Crescent Moderate Allocation 28.00 12,500.00 5.45
10.00   Perkins Value Plus I Moderate Allocation 11.15 10,000.00 5.52
10.00   Principal Global Div World Allocation 13.60 10,000.00 5.67
10.00   Templeton Global Bon World Bond 13.94 10,000.00 5.22
10.00   IVA Worldwide I World Allocation 17.62 10,000.00 5.38
10.00   T. Rowe Price Capita Moderate Allocation 21.70 10,000.00 6.84
7.00   Matthews Asia Divide Diversified Pacific/Asia 14.38 7,000.00 1.91
7.00   Aston/River Road Ind Small Value 10.96 7,000.00 9.93
6.00   Permanent Portfolio Conservative Allocation 48.21 6,000.00 5.24

OAKEX is the final fund with 5%. Please note - this is based on 100,000 portfolio for the percentage.

 

Re: How would you redeploy this 25% cash?
07-05-2011, 8:02 AM | Post #3072401
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thanks, db.

now maybe someone with a stronger alloc/bal bent will weigh in?

Re: How would you redeploy this 25% cash?
07-05-2011, 5:30 AM | Post #3072371
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floete:

can you see any logical way of slimming, simplifying and using more alloc/bal funds here?

You're probably asking the wrong person, since I am a self-avowed "splitter" who's portfolio contains 2 to 4 above average funds per investment sector (LC value, EM, SC, Europe, etc.).

I seek to construct a somewhat value-tilted, diversified portfolio that is 50/30/20 LC/MC/SC both domestically and internationally.  I haven't been able to achieve this using just a small number of funds, allocation or not.  Instead, I identify above average performing, actively managed funds with very good risk/reward profiles and allocate anywhere from 1 to 4% to each one in order to "craft" the portfolio in accordance with my goals.  Allocation funds I use include IVWIX, HAFLX, FPACX, PAUIX, and OAKBX.

That being said, I think your test portfolio is still overweight small caps (which are more richly priced than LC) and underweight international (specifically Asia and emerging markets where much of global economic growth is anticipated to occur).  You may want to reduce SC by 5% (perhaps by reducing both HNVIX and WSCVX to 2.5% each) and redeploy that 5% into DEM.

Best wishes,

DB

Re: Re: How would you redeploy this 25% cash?
07-05-2011, 5:03 AM | Post #3072368
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'db': well, golly, gee, dagnabit :-), i don't see prwcx either.  looks like 5% oakmark intl pushed it out of the way.  but you get the drift.

looking at the portfolio, however, it seems that i've done what i had not intended to do, which is a/ expand the list of funds b/ thereby complicating matters c/ whilest getting away from my original intention of following to a greater degree the allocation/balanced-funds intention of this forum.

can you see any logical way of slimming, simplifying and using more alloc/bal funds here?

thanks again.

 

Re: How would you redeploy this 25% cash?
07-04-2011, 7:55 PM | Post #3072289
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floete:

dagnabit et al:  have a look at my shared portfolio 'new test july'.  it takes most of your ideas but i couldn't bring myself to get rid of prwcx so foreign is still low.  but other than that, what do you think?

Took a quick look, but no PRWCX to be found...

Regards,

"DB"  ;-)

Re: Re: How would you redeploy this 25% cash?
07-04-2011, 4:36 PM | Post #3072211
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dagnabit et al:  have a look at my shared portfolio 'new test july'.  it takes most of your ideas but i couldn't bring myself to get rid of prwcx so foreign is still low.  but other than that, what do you think?

Re: How would you redeploy this 25% cash?
07-04-2011, 2:41 PM | Post #3072182
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"dt: i'll look into dlenx. what's its major competition? tgeix?"

Hi Floete,

Yes, I believe most of the posters that I have read on this subject believe DLENX and TGEIX are strong funds in this area.  Some even hold both funds in some ratio of priority.  Availability through the brokerage you use might make a difference.

Hope it works out for you.  By the way, I do like OAKBX and understand the benefit to increase it.

dtconroe

Re: How would you redeploy this 25% cash?
07-04-2011, 10:55 AM | Post #3072099
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thanks!  idaho: i think i'll hold onto mapix as you suggest, at least for a while long, and definitely i'm going to get oakbx back as a bigger holding.

dt: i'll look into dlenx.  what's its major competition?  tgeix?

racq: i'm 57 and won't need income for another 10 yrs, god willing.  plus, i'm just not sure how to invest for income and would need to spend a good bit of time figuring it out before making the switch.  then again, maybe it's not too soon to add some tibix to the mix.  what do you think?

  also: I'm not sure i understand this statement: "I think that PRPFX and PGDIX should be more garnish than steak.  ;-)  If I had to sacrifice something in favor of PGDIX and PRPFX, it would be PRWCX."  could you help me out w/ a little bit more explanation?  thanks!

   what do you think about adding a bit more to the arivx etc scmall cap allocation?

   dag: thanks a heap for that.  let me digest it and respond later.  looks great, though.

 

Re: How would you redeploy this 25% cash?
07-04-2011, 10:09 AM | Post #3072071
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Hi floete,

 

Looking at your existing allocations, you are heavy in US and SC, light in MC and international.  You may want to consider the following re-allocations:

 

·     Reduce MAPIX to 7%;

·     Add DEM at 4%;

·     Swap PRWCX for OAKIX (8.96%);

·     Increase OAKBX to 9%;

·     Reduce WSCVX to 2.47%;

·     Add TGEIX at 6.35%;

·     Add UMBMX at 11%;

·     Swap TGBAX for TTRZX for a little better total return (and consider adding a solid multi-sector bond fund such as PONPX...LSBDX is a bit wild for me, though I hold a bit of it)

 

The resultant portfolio looks like this:

Asset Allocation | Holdings Detail

  Long% Short% Net%
Cash 13 -1 12
U.S. Stocks 34 0 33
Foreign Stocks 25 0 25
Bonds 24 0 24
Other 5 0 5
Not Classified 0 0 0
  Total 101 -1 100

             Value     Blend     Growth

Large       18           16          15

 

Mid          12           12           6

 

Small        9             8           3

 

U.S. & Canada 58.12
Europe 15.74
Japan 7.62
Latin America 2.40
Asia & Australia 14.07
Other 2.04
Not Classified 0.00

 

Yield = 2.13

ER = 1.03

 

If you'd like more growth, add HAFLX and/or SGRNX.

 

Best,

DB

 

Re: Re: How would you redeploy this 25% cash?
07-04-2011, 8:31 AM | Post #3072014
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 You could give me your extra 25% for more fireworks! I still can't get over how much they want for little army tanks that last two seconds. Anyhow, happy 4th!!

Rac is spot on. I really see no reason for reducing MAPIX, as you'll be hard pressed to find that kind of yield in the US. And I still believe that Asian growth will best our own.

Adding more OAKBX is a no brainer. 

Re: How would you redeploy this 25% cash?
07-04-2011, 8:27 AM | Post #3072011
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Floete,

I can appreciate your challenge.  I am not familiar with your situation, but you might consider the IVWIX philosophy of using some additional bonds that are "equity like" in their performance.  You mentioned LSBRX and that certainly is an equity like bond fund.  I like DLENX in the EM bond category with a sterling management team that has done well in down markets and in longer term investing.  In general, I am a proponent of keeping funds below 10% (although I am struggling personally with that with my 401k menu offerings)and having quite a bit of diversity. 

Best on your decisions.

dtconroe

Re: How would you redeploy this 25% cash?
07-04-2011, 6:29 AM | Post #3071973
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Lots of unanswered questions...  Age?  Will you need income from the portfolio at some point?  Do you have enough bonds/cash?  Do you prefer such a heavy emphasis on the US?  Do you want to stay primarily with "developed" economies?  Do you need growth in your portfolio?

There's certainly nothing wrong with bringing the OAKBX level up.  MAPIX could come down a little, but imo, you need a decent amount of it to get growth.  I'm not sure that taking it down to 5%, given the rest of the portfolio, is the best course. 

For me, a core of IVWIX, FPACX, OAKBX, MAPIX, TGBAX, and PRWCX, all at about the same level (9-10%), would be pretty solid, although PRWCX is not a 'hold' for me.  I like the combination of ARIVX, HRVIX, and WSCVX.  I like PGDIX, but I'm not sure I'd put it at the same level as a 'core' fund in this portfolio.  I think that PRPFX and PGDIX should be more garnish than steak.  ;-)  If I had to sacrifice something in favor of PGDIX and PRPFX, it would be PRWCX.

Of the two portfolios, I prefer Limo's (more SC).