TWEIX has been successful in the past by adding Convertibles and Preferreds to its portfolio.  That has provided a pretty smooth ride, a la low beta and standard deviation.

Another similar option to look at is NOIEX, Northern Income Equity.

And, one of the best pure plays in Convertibles is Vanguard's VCVSX, Convertible Securities.  What's remarkable, IMHO, is the comparison of the following 10-Yr Returns as of 4/30/08 of these 3 Vanguard Allocation funds:
Wellesley..........6.67%
Wellington.........7.31%
Convertibles.......7.36%

Now sing along:  "Past performance................"
Coy

Coy, You made an interesting observation about VCVSX's 10-year return. Fidelity Convertible Securities (FCVSX) has a 10-year return of 10.27%, just under PRWCX in Morningstar's fund rankings. It seems that convertibles don't excite much discussion on these boards. Yet I think a solid convertibles fund can play a long-term supporting role.

I also own TWEIX and its performance is about what is to be expected from this fund.  It is a Low volatilty fund and not a high flier.  If you want 10% - 11% per year with low beta, risk and volatility than TWEIX is a good choice.

The only downfall with it is that you (retail investor) can no longer add to it because it has become an Institutional fund.

You may want to look at FMIHX a no-load, NTF fund (at least at Fidelity).  It is more of a Large Blend, but it's Standard Dev, Beta, Alpha, Returns, etcetera are "superior" to TWEIX.

I also agree with your other replies that a touch of Convertables is a good thing.  If you are bent on selling TWEIX, check out the funds mentioned in these replies, you should be able to come up with a good replacement for TWEIX.

Good Investing!!!!

PRWCX is similar to TWEIX

After reading all your replies I am going to stick with TWEIX as I have a ton of volatile funds so this would act as a nice counterbalance. I do have about the same amount of VEIPX and I had no plans to add to TWEIX anyways.

 thanks, I will stay pat.

 Gary