Peggytex,

If you look at regional exposure in PRGSX you will find that you get a nice representation for just about all of the areas you already hit with TREMX, PRASX, PRLAX . . .

As of 3/31/08:

U.S. 38.5%

Europe 20.4%

Lat. Am. 14.0%

Pac. Ex Japan 10.6%

Japan 4.7%

ME/Africa 3.8%

If you hold high percentages in your other em funds you might not want to add PRGSX to the mix. Global funds like PRGSX work best when you use them for a large (if not total) percentage of your overall equity exposure. Remember that U.S. stocks make up the largest regional exposure in Gensler's portfolio so it's a stretch to use PRGSX as your only international fund. As I said before, it's designed to be your only equity fund.

I like to pair PRGSX with PRWCX to make a core along with a few other balanced/global funds. From there I look at areas that I might want to add/overweight. For example, I maintain a 5% allocation to TRREX and I'm currently overweight TRAMX.

migues

Good day Migues, PRGSX has been one of the core funds in my Roth IRA for the past three years. Gensler's expertise in telecoms is one reason for the fund's success (watch Bharti Airtel). Peggytex, You might reduce PRLAX a bit but I would not sell it. Recent events have changed the game in Brazil: 1) the discovery by Petrobras of the world's potentially third-largest oil reserves; 2) S&P's upgrade of Brazilian debt to investment grade which will broaden the field of foreign investors. Many of Brazil's big international firms, including Petrobras (PBR) and Vale (RIO), enjoyed a run-up last week, but some analysts now expect domestic firms to benefit from internal growth. PRLAX manager Gonzalo Pangaro is already positioning his portfolio to take advantage of domestic growth with stakes in Lojas Renner, etc.

A few weeks ago i was about to reduce PRLAX--and then read a weekend news story about the oil reserve discovery.  Then i saw the S&P upgrade.  This past month PRLAX almost singlehandedly increased my 401k. PRNEX  also helped.  i've had both  for 4 yrs and will keep them awhile longer.

PRLAX has become 22% of my 401k so i've stopped buying it and am building up other parts of the port to realign the balance.

RE: PRGSX role in the portfolio--could it replace Personal Strategy Growth? how many core funds should a portfolio have, how many funds (of any style) are too many?

peggytex

Hello Everyone & Happy Sunday! 

Robert Ginsler has been on a streak for quite a while now, and has not hit any bumps on the road yet.  Good for him, and me too, because I'm still doing the monthly A.A.B. with his fund.  Global Stock makes a nice compliment to my other Global fund, PGVFX, Polaris Global Value Fund.  PGVFX did hit a roadbump last year, and vastly underperformed.  I'm glad I didn't give up on Bernard Horn.  If fact, I sent him a little extra.  He seems to be back on track this year, so far.

Global Stock has been loading up on Emerging Markets, which, just in my humble opinion, disqualifies it as a Core holding.  There is something about investing and people, whereby there is no One-Size-Fits-All Mutual Fund.  What is a Core fund in my portfolio may or may not be a core fund in migues or other's portfolios, and vice versa.  migues and I even have some of the same funds and nearly the same Stock:Bond Allocations, but our personal risk tolerances and our funds' Roles in portfolios are probably different.  No problem there.

TRSGX, Personal Strategy Growth, although being a little growthy, does have a 15% allocation to Bonds, which acts as a shock absorber.  Moringstar shows it to have Low and Below Average Risk with Above Average Returns(10-Yr and Overall), and below market Standard Deviation and Beta numbers.  That makes for great Risk Adjusted Returns, and I would consider it a great Core Holding.  I wish it was available in my 401k;^(

My IPS requires me to keep Two Thirds of the Retirement Porfolio in Core Funds.  Those are funds like PRWCX,Capital Appreciation, PRFDX, Equity Income, TRRDX, Retirement 2040, VBMFX, Total Bond Market, and CASH$.  My Supporting Role funds are in the two Global Funds, PGFVX and PRGSX, two Real Estate funds, EGLRX, Alpine International Real Estate Equity and TAREX, Third Avenue Real Estate Value, and two EM funds American New World Emerging Markets fund, RNWEX, and TRAMX, Africa....

Here are some M* links to some archived Sue Stevens articles that I dug up that may be helpful for Peggytex and others:

Creating Your Investment Policy Statement, dated 08-15-02
http://news.morningstar.com/articlenet/article.aspx?

How to Analyze Your Porfolio, dated 03-23-06
http://news.morningstar.com/articlenet/article.aspx?&esection=comm

Constructing the Core of Your Portfolio, dated 07-06-06
http://news.morningstar.com/articlenet/article.aspx?&esection=comm

Six Great Core Funds, Six for Diversifying, dated 12-08-05
http://news.morningstar.com/articlenet/article.aspx?&esection=comm

How to Build a Great Portfolio for Your Working Years, dated 08-17-06
http://news.morningstar.com/articlenet/article.aspx?&_qsbpa=y

I hope these links work and they help,
Coy

Edit: Apparently the links are not getting to the articles.  Put Sue Stevens in the Search Box, that is on the Home Page.  That will get you to them eventually.

 wow! mil gracias, mr. coy--great articles, i never would have found this advice without your post.  peggy tex

Migues, I think you and I would get along fine.  PRGSX is one of my core holdings, along with OAKBX, FAIRX, PENNX for small-cap, Janus 20, Contrarian and Overseas and Spectrum Income for fixed-incomes.  I've been steadily moving emerging-market money into PRGSX, since Gensler covers so much of those markets in his fund, and have found the ride smoother.  It's also a nice partner with American Fund's CWG in my wife's 401k. Gensler seems to do fine with a wider-ranging portfolio than he had in his past funds.  Hard to believe more money isn't jumping in faster, but I'm not complaining.  Thanks for your posts.  Mark B. 

Mark B.,

Sounds like we could swap portfolios and never even notice. Well, maybe except for those Janus funds. I do kind of like JSVAX and have nearly pulled the trigger on it many times, but another fund is the last thing I need.

I know PRGSX scares some people off as a core fund, and I understand that. OAKBX, PRWCX, FAIRX and the like help to smooth out the ride. But Gensler has been pert good thus far, and as you know full well you cannot win if you do not play. (Steve Forbert said that).

CWGIX is one helluva fund. Give it to me minus the load and I'm all over it. Throw in CAIBX and I could make a nice portfolio. I might go something like one third each in CWGIX, CAIBX and RPSIX (or VWINX) and ride off into the sunset and forget about all this investing stuff. Go ahead and try to beat that trio long term.

migues

I bought a chunk of DODWX when it opened and already having regrets. Sorta, kinda thinking that I would have been more comfy with PRGSX. Sometimes I could slam my head against a wall. Bought DODWX darn impulsively and should have considered options more carefully.

If you are out there Twin, we sure did screaming nicely with OBMAX didn't we? That was not an impulsive choice. :)

Nancy 

Well, in a Morningstar Home Page article anyway:

"Latin America Bets Boosts Some Funds"

The TRP website shows Global Stock to have a whopping 14% in Latin America.  Spice that up with 5.2% in India, 4.3% in China, 2.7% in Russia, and 3.8% in Middle East & Africa.  That's close to over 30% in Emerging Markets.  Talk about a boost.  Make that a Booster Rocket!

Nancy, Don't give up on DODWX just yet.  It may need a good run or a good rally to really show what it can do.  So, don't let Buyer's Remorse get you down.

Coy

Migues,

Since CWGIX is one of my core holdings I thought I would post what Bridget B. Hughes of Morningstar has to say about CWGIX.

http://news.morningstar.com/articlenet/article.aspx?&pg  

"Consistency and reason come to mind when I think of this fund, and that's just the way American Funds would have it. While the fund's performance never tops its world-stock category charts, neither does it frequent the group's basement. In building the portfolio, the fund's nine portfolio managers, each of whom run a separate portion of the fund here, certainly value quality and growth, but they aren't willing to overpay for it--in fact, they tend to buy when other investors sell, serving as a contrarian investor. (That certainly helps, given the fund's and fund family's enormity.) And they're keen on dividends, which helps smooth returns."

She also states that CWGIX has a 15 year annual average total return of 14.42%.

helmut