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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • The Six Secrets To Beating The Market
    Too easy a charge to make. There were puhlenty of mainstream articles from 20+ years ago, and older, saying that 'here are 5 (or whatever) consistently excellent funds that appear poised to do well over the longterm future'. DODGX, FCNTX, FLPSX, TRBCX, and surely some from Vanguard. And others, but those are in memory. I know because I already owned some and followed their coverage, and w/ OCD about it (then, less so now) was always on the lookout for future adds.
    davidrmoran davidrmoran in Fund Discussions
  • The Six Secrets To Beating The Market
    Almost everyone can run a screen that can beet the market looking backwards. Can anyone you tell me how many of them will beat the market in the next 5 years or even 3 years?
    Often money managers that had great records with small amounts of money under management struggle with popularity rises and more assets flow in. Other manager take note as well. They analyze the investments and strategy of the manager and try to replicate the success and suddenly too many fishers are fishing in the same pond and alpha is gone.
    You know there are incubation funds as well. Fund companies incubate funds for 3 or 5 years and if they are successful they are opened to bigger public. So, the previous record is incorporated to the fund that almost never benefited it. There are a lot of tricks the fund industry is playing to show alpha but rearview investing can take so much. Future is uncertain as ever.
    Investor Investor in Fund Discussions
  • Ed Slott: Why Roth IRAs Are Here To Stay
    @AndyJ- Oh, yes... some 65 years and many floods. They were a lot more fun when I was a kid. The flood in '95 was the last straw for the old original house. We had to tear that one down and then built the new place. And yes, it's still beautiful: the view over the Russian River from our rear deck hasn't changed at all since I was a kid. Timeless. As long as there's no fire, that is.
    Old_Joe Old_Joe in Fund Discussions
  • Ed Slott: Why Roth IRAs Are Here To Stay
    Best Ira maybe SEP- Ira if you have a small business or have 1099 incomes... I have one at Vanguard - it's great way to have tax sheltered acct to have for long term holdings because you save so much tax deferred to use for investing
    Anyone have DEFINED BENEFITS plans added to their portfolio!?
    @johnN you asked this two weeks ago and I stated that "if the object is to maximize allowable contributions, the individual 401(k) is usually superior."
    https://mutualfundobserver.com/discuss/discussion/47567/roth-ira-and-sep-ira-and-defined-benefits-questions
    I'll try to be clearer. What are you trying to do with a DB plan? Usually someone looks at these only with high income and after one has maxed out DC options. For most people with self-employment income, they get a higher max with a 401(k) plan than with a SEP-IRA.
    The SEP-IRA limit is lower until you hit $280K in net income. Even then, it's still lower if you qualify for a catch up contribution, which you can't do with a SEP.
    So if you're trying to increase the amount you can defer, have you looked into a 401(k) instead of a SEP? If you're trying to create a "traditional" pension plan (which is what a DB plan is), have you considered simply annuitizing (part of) your DC plan instead? That's simpler than doing all the annual mortality and funding calculations for a DB plan.
    Here's a calculator from Fidelity that will show you what you can contribute to a SEP vs a 401k plan.
    https://scs.fidelity.com/products/mobile/sepMobile.shtml
    Here's Fidelity's worksheet (with 2017 limits) that shows you what's behind the calculations:
    https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/customer-service/401k-self-employed-owner-only-business.pdf
    Another reason why a 401(k) plan is superior for some - unlike a SEP, it allows you to make Roth contributions. Vanguard finally added a Roth option to its individual 401(k). For many years, T. Rowe Price was the only one offering a no cost 401(k) with Roth option, which is why I used that. Fidelity's still doesn't have a Roth option.
    https://investor.vanguard.com/small-business-retirement-plans/comparison
    msf in Fund Discussions
  • Matthews Asia Focus Fund to liquidate
    It would be 6y old at the end of April, and only $7mm in assets. Matthews launched quite a few funds in the past several years that haven't really broken out in popularity. I just hope they don't start dropping more of them, like my fave MAVRX, their only identified value fund, with ~ $25mm in assets.
    AJ,
    What are the differences between MAVRX and MAPIX?
    Mona
    Mona in Fund Discussions
  • Matthews Asia Focus Fund to liquidate
    It would be 6y old at the end of April, and only $7mm in assets. Matthews launched quite a few funds in the past several years that haven't really broken out in popularity. I just hope they don't start dropping more of them, like my fave MAVRX, their only identified value fund, with ~ $25mm in assets.
    AndyJ in Fund Discussions
  • Help with Int'l/Global
    Thanks @Old_Skeet,,
    I fell in love with pie-charts some 25 years ago after I deep-sixed my fee-based “advisor” and started wondering how to diversify a portfolio. It’s an easy way to visualize the proportion allocated to different sectors and to make quick modifications if needed. (Might also be a “right brain” / “left brain” issue. :) ) Dr. Mandell’s recommendations, while not presented in pie-chart form, easily lend themselves to one. No doubt there are apps that could easily display them that way.
    I’m astounded at how conservatively he positions a “conservative” investor. 45% cash? Yikes! But it’s not for me to say. Something in me wonders if that represents perhaps a “cautious” outlook for stocks?
    I’m glad @Starchild felt enlightened by all the suggestions. I didn’t weigh in. The universe of high quality International / Global funds is just too wide for me to be comfortable suggesting one. Success relative to peers is often based on where in the world they chose to position the fund and how different economies performed over shorter periods.
    hank in Fund Discussions
  • Help with Int'l/Global
    @Starchild: It's me again. I pulled Dr. Madell's recommended funds form his recent newsletter. They are listed below for your review. It looks like VWIGX is his recommended international choice. You might wish to look at TBGVX as it is also on his short list. And, VTMGX looks interesting as well.
    My Recommended Stock Funds:
    -Vanguard Extended Market Idx (VEXMX)
    -Vanguard Small Cap Growth Idx (VISGX)
    -Vanguard 500 Index (VFINX)
    -Vanguard Equity Income (VEIPX)
    -Vanguard Windsor II (VWNFX)
    -Vanguard Energy (VGENX)
    -Vanguard Growth Idx (VIGRX)
    -Vanguard Pacific Index (VPACX)
    -Vanguard International Growth (VWIGX)
    -Vanguard Europe Idx (VEURX)
    -Vanguard Emerging Markets Idx (VEIEX)
    -Tweedy, Browne Global Value (TBGVX)
    -Vanguard Total Stock Mkt Idx Inv (VTSMX)
    -Vanguard Developed Markets Idx Adm (VTMGX)
    My Recommended Bond Funds:
    -Vanguard California Interm-Term Tax-Exempt (VCAIX)
    -PIMCO Total Return Instl (PTTRX)
    -Vanguard Total Bond Market Index (VBMFX)
    -Vanguard High Yield (VWEHX)
    -Vanguard Short-Term Investment-Grade (VFSTX)
    -PIMCO International Bond Adm (PFRAX)
    -Vanguard Total International Bond Index (VTIBX)
    Some Tips Form Skeet
    You might wish to visit how much risk you have within your portfolio. I have seen, through the years, some of my buddies taking on too much risk in an attemp to meet targeted returns. Have you done a risk assessment of your portfolio? And, is it set to your tolerance? If in doubt then you might wish to do a risk profile on yourself. I have linked one below just in case it might interest you.
    https://www.calcxml.com/do/inv08
    In doing a look back into Dr. Madell's October 2018 newsletter below are his published model asset allocations.
    Overall Allocations to Stocks, Bonds, and Cash
    Recommended For Moderate Risk Investors
    Asset Current (Last Qtr.)
    Stocks 57% (57%)
    Bonds 24 (25)
    Cash 19 (18)
    Recommended For Aggressive Risk Investors
    Asset Current (Last Qtr.)
    Stocks 73% (73%)
    Bonds 14 (14)
    Cash 13 (13)
    Recommended For Conservative Risk Investors
    Asset Current (Last Qtr.)
    Stocks 20% (20%)
    Bonds 35 (35)
    Cash 45 (45)
    While my asset allocation of 20% cash, 40% income and 40% equity might not be right for you it is what I have recently moved to being 70+ years in age and retired. This asset allocation affords me enough cash reserves should I need a cash infusion, enough income generation from my income area along with enough growth from my equity area to grow my principal over time. Generally, I take no more than one half (in dollars) of what my five year annual average returns have been. In this way principal grows over time. And, as my principal grows so do my distributions.
    In addition, I'd do an Instant Xray of my portfolio before I add new positions and then with the proposed changes to make sure the changes reflect the way I want to head.
    Morningstar's Instant Xray tool is linked below. In addition to looking at your portfolio as a whole you might wish to look at each fund in Xray to see how it is compiled. This should help in making better fit choices.
    https://www.morningstar.com/portfolio.html?requestUrl=/RtPort/Free/InstantXRayDEntry.aspx?dt=0.7055475
    Again, I wish you good investing in the years to come.
    Old_Skeet
    @Starchild: It's me again. I pulled Dr. Madell's recommended funds form his recent newsletter. They are listed below for your review. It looks like VWIGX is his recommended international choice. You might wish to look at TBGVX as it is also on his short list. And, VTMGX looks interesting as well.
    My Recommended Stock Funds:
    -Vanguard Extended Market Idx (VEXMX)
    -Vanguard Small Cap Growth Idx (VISGX)
    -Vanguard 500 Index (VFINX)
    -Vanguard Equity Income (VEIPX)
    -Vanguard Windsor II (VWNFX)
    -Vanguard Energy (VGENX)
    -Vanguard Growth Idx (VIGRX)
    -Vanguard Pacific Index (VPACX)
    -Vanguard International Growth (VWIGX)
    -Vanguard Europe Idx (VEURX)
    -Vanguard Emerging Markets Idx (VEIEX)
    -Tweedy, Browne Global Value (TBGVX)
    -Vanguard Total Stock Mkt Idx Inv (VTSMX)
    -Vanguard Developed Markets Idx Adm (VTMGX)
    My Recommended Bond Funds:
    -Vanguard California Interm-Term Tax-Exempt (VCAIX)
    -PIMCO Total Return Instl (PTTRX)
    -Vanguard Total Bond Market Index (VBMFX)
    -Vanguard High Yield (VWEHX)
    -Vanguard Short-Term Investment-Grade (VFSTX)
    -PIMCO International Bond Adm (PFRAX)
    -Vanguard Total International Bond Index (VTIBX)
    Some Tips Form Skeet
    You might wish to visit how much risk you have within your portfolio. I have seen, through the years, some of my buddies taking on too much risk in an attemp to meet targeted returns. Have you done a risk assessment of your portfolio? And, is it set to your tolerance? If in doubt then you might wish to do a risk profile on yourself. I have linked one below just in case it might interest you.
    https://www.calcxml.com/do/inv08
    In doing a look back into Dr. Madell's October 2018 newsletter below are his published model asset allocations.
    Overall Allocations to Stocks, Bonds, and Cash
    Recommended For Moderate Risk Investors
    Asset Current (Last Qtr.)
    Stocks 57% (57%)
    Bonds 24 (25)
    Cash 19 (18)
    Recommended For Aggressive Risk Investors
    Asset Current (Last Qtr.)
    Stocks 73% (73%)
    Bonds 14 (14)
    Cash 13 (13)
    Recommended For Conservative Risk Investors
    Asset Current (Last Qtr.)
    Stocks 20% (20%)
    Bonds 35 (35)
    Cash 45 (45)
    While my asset allocation of 20% cash, 40% income and 40% equity might not be right for you it is what I have recently moved to being 70+ years in age and retired. This asset allocation affords me enough cash reserves should I need a cash infusion, enough income generation from my income area along with enough growth from my equity area to grow my principal over time. Generally, I take no more than one half (in dollars) of what my five year annual average returns have been. In this way principal grows over time. And, as my principal grows so do my distributions.
    In addition, I'd do an Instant Xray of my portfolio before I add new positions and then with the proposed changes to make sure the changes reflect the way I want to head.
    Morningstar's Instant Xray tool is linked below. In addition to looking at your portfolio as a whole you might wish to look at each fund in Xray to see how it is compiled. This should help in making better fit choices.
    https://www.morningstar.com/portfolio.html?requestUrl=/RtPort/Free/InstantXRayDEntry.aspx?dt=0.7055475
    Again, I wish you good investing in the years to come.
    Old_Skeet
    Wow! Over the top help @ old_skeet. I really appreciate it and will take it all in.
    Starchild Starchild in Fund Discussions
  • Improved Social Security COLA Would Help Seniors Stay Ahead Of Inflation
    FYI: Whenever I do a town hall about Social Security, one issue invariably rises to the top: cost-of-living adjustments (or COLAs).
    Retirees across America consistently tell us that their annual COLAs simply are not adequate. And they have a reason to be concerned. Though the 2019 COLA is a decent 2.8%, these adjustments historically have not kept pace with seniors’ rising expenses. In fact, for three of the past 10 years there were no cost-of-living increases — zero. In 2017, the COLA was a scant 0.3% — or a meager $4 a month for the average beneficiary.
    Simply put, retirees need a COLA that accurately reflects the effects of inflation on their cost of living. The current index, the CPI-W, is pegged to urban wage earners’ living expenses, and tends to underestimate what seniors spend on big ticket items like housing and medical care. By the same token, retirees purchase less gasoline than working-age Americans, even though the cost of gas figures prominently into the current inflation index. As the Center for Retirement Security explains, “In 2016, retirees received no COLA specifically because the cost of oil plummeted. The low cost of gasoline offset [actual inflation] in other areas.”
    Regards,
    Ted
    https://www.marketwatch.com/story/improved-social-security-cola-would-help-seniors-stay-ahead-of-inflation-2019-02-28/print
    Ted Ted in Fund Discussions
  • Help with Int'l/Global
    @Starchild: It's me again. I pulled Dr. Madell's recommended funds form his recent newsletter. They are listed below for your review. It looks like VWIGX is his recommended international choice. You might wish to look at TBGVX as it is also on his short list. And, VTMGX looks interesting as well.
    My Recommended Stock Funds:
    -Vanguard Extended Market Idx (VEXMX)
    -Vanguard Small Cap Growth Idx (VISGX)
    -Vanguard 500 Index (VFINX)
    -Vanguard Equity Income (VEIPX)
    -Vanguard Windsor II (VWNFX)
    -Vanguard Energy (VGENX)
    -Vanguard Growth Idx (VIGRX)
    -Vanguard Pacific Index (VPACX)
    -Vanguard International Growth (VWIGX)
    -Vanguard Europe Idx (VEURX)
    -Vanguard Emerging Markets Idx (VEIEX)
    -Tweedy, Browne Global Value (TBGVX)
    -Vanguard Total Stock Mkt Idx Inv (VTSMX)
    -Vanguard Developed Markets Idx Adm (VTMGX)
    My Recommended Bond Funds:
    -Vanguard California Interm-Term Tax-Exempt (VCAIX)
    -PIMCO Total Return Instl (PTTRX)
    -Vanguard Total Bond Market Index (VBMFX)
    -Vanguard High Yield (VWEHX)
    -Vanguard Short-Term Investment-Grade (VFSTX)
    -PIMCO International Bond Adm (PFRAX)
    -Vanguard Total International Bond Index (VTIBX)
    Some Tips Form Skeet
    You might wish to visit how much risk you have within your portfolio. I have seen, through the years, some of my buddies taking on too much risk in an attemp to meet targeted returns. Have you done a risk assessment of your portfolio? And, is it set to your tolerance? If in doubt then you might wish to do a risk profile on yourself. I have linked one below just in case it might interest you.
    https://www.calcxml.com/do/inv08
    In doing a look back into Dr. Madell's October 2018 newsletter below are his published model asset allocations.
    Overall Allocations to Stocks, Bonds, and Cash
    Recommended For Moderate Risk Investors
    Asset Current (Last Qtr.)
    Stocks 57% (57%)
    Bonds 24 (25)
    Cash 19 (18)
    Recommended For Aggressive Risk Investors
    Asset Current (Last Qtr.)
    Stocks 73% (73%)
    Bonds 14 (14)
    Cash 13 (13)
    Recommended For Conservative Risk Investors
    Asset Current (Last Qtr.)
    Stocks 20% (20%)
    Bonds 35 (35)
    Cash 45 (45)
    While my asset allocation of 20% cash, 40% income and 40% equity might not be right for you it is what I have recently moved to being 70+ years in age and retired. This asset allocation affords me enough cash reserves should I need a cash infusion, enough income generation from my income area along with enough growth from my equity area to grow my principal over time. Generally, I take no more than one half (in dollars) of what my five year annual average returns have been. In this way principal grows over time. And, as my principal grows so do my distributions.
    In addition, I'd do an Instant Xray of my portfolio before I add new positions and then with the proposed changes to make sure the changes reflect the way I want to head.
    Morningstar's Instant Xray tool is linked below. In addition to looking at your portfolio as a whole you might wish to look at each fund in Xray to see how it is compiled. This should help in making better fit choices.
    https://www.morningstar.com/portfolio.html?requestUrl=/RtPort/Free/InstantXRayDEntry.aspx?dt=0.7055475
    Again, I wish you good investing in the years to come.
    Old_Skeet
    Old_Skeet in Fund Discussions
  • Help with Int'l/Global
    @Starchild: I have provided a link to Dr. Tom Madel's mutual fund newsletter. You can review current and past newsletters once you open the link. I'm sure, being a new investor, there is a weath of information contained in these newsletter from asset allocation models and recommended fund selections that will be of some benefit.
    http://funds-newsletter.com
    You might wish to give a shout out to @JoJo26 as she seems to be of the new school spirited type investor for her thoughts. In addition, perhaps @tmadell might have a thought or two for you. I'm of the old school type and invest the traditional way via broker and financial advisor.
    I wish you the very best in the coming years with your investing endeavors.
    Old_Skeet
    Thanks Skeet! Much appreciated.
    Starchild Starchild in Fund Discussions
  • Help with Int'l/Global
    @Starchild: I have provided a link to Dr. Tom Madel's mutual fund newsletter. You can review current and past newsletters once you open the link. I'm sure, being a new investor, there is a weath of information contained in these newsletter from asset allocation models and recommended fund selections that will be of some benefit.
    http://funds-newsletter.com
    You might wish to give a shout out to @JoJo26 as she seems to be of the new school spirited type investor for her thoughts. In addition, perhaps @tmadell might have a thought or two for you. I'm of the old school type and invest the traditional way via broker and financial advisor.
    I wish you the very best in the coming years with your investing endeavors.
    Old_Skeet
    Old_Skeet in Fund Discussions
  • Ed Slott: Why Roth IRAs Are Here To Stay
    I agree with the conclusion, but with little else here. Slott plays to his crowd: the government is bad, the government is out to get you, the government lies.
    Look at the quote Gary gave (gov said SS would never be taxed). Here's what SSA says about that:
    Originally, Social Security benefits were not taxable income. This was not, however, a provision of the law, nor anything that President Roosevelt did or could have "promised." It was the result of a series of administrative rulings issued by the Treasury Department in the early years of the program. ...
    In 1983 Congress changed the law by specifically authorizing the taxation of Social Security benefits. This was part of the 1983 Amendments, and this law overrode the earlier administrative rulings from the Treasury Department.
    I suspect Slott would be bringing up notch babies, except that nearly all of this part of his crowd has died off. (They'd be over 100 years old.)
    He said that people who had already made Roth contributions would be grandfathered in. IMHO he's being too generous here. Previous contributions and previous earnings would be grandfathered in, but not people. Future earnings in Roths by people who already had Roths could be taxed easily.
    The reasons why I believe that, and not what he described would be the worst case are twofold:
    1 - Government honesty (seriously). Governments (federal, state, local) may individually tax the same income (e.g. fed and state tax the same W2 income), but a single government entity does not tax the same income twice. (The IRS may tax corp. earning and then tax dividends paid out of those earnings, but those are taxes levied on two different taxpayers, at two different levels.) Roth contributions have already been taxed as personal income; they will not be taxed again.
    2 - Pragmatics. No one is required to maintain records of contributions or earnings in Roth IRAs (at least once the five year requirements have been met). So it would be difficult for the government to tax past earnings on contributions. It would be very easy for it to tax future earnings. Just change the law so that people (and financial institutions) are required to keep track of those earnings.
    msf in Fund Discussions
  • Help with Int'l/Global
    @Starchild: FWIW.
    Since, the S&P 500 Index now derives better than 40% of it's earnings outside the US I use mostly global funds to gain additional foreign exposure. Please know that it has not always been this way since I became an investor some fifty years ago. So, to gain additional foreign exposure, years back, I used some global funds to offer me more foreign exposure. And, I still do today.
    In the growth and income area of my portfolio my global equity sleeve consist of: CWGIX, DEQAX, DWGAX and EADIX. All of these funds pay good dividends.
    In the growth area of my portfolio my global growth sleeve consist of: ANWPX, NEWFX and SMCWX.
    Then there are global allocation funds that can also provide both domestic and foreign exposure. I own a good number of hybrid type funds. Three of them found in the growth & income area of my portfolio in the global hybrid sleeve are CAIBX, TEQIX and TIBAX. All of these funds pay good dividends.
    My thinking, today, is still to use global funds which allows the fund manager to be somewhat adaptive to the markets by leaning towards which are felt to be the better performers between domestic or foreign holdings while still holding some of each.
    Most of the above funds I have owned for better than ten years with some more than twenty five.
    Best of luck in your seach for an international or global fund that finds your fancy.
    This is a big help @Old_Skeet, thanks for taking the time to help a newer investor. I don't really have the means to invest in so many offerings, but hoping to establish some type of fund or two that will act as a solid core with foreign exposure I can put money into when I can, at least for now. I will look into these suggestions. So far, I've been leaning towards VWIGX, Vangurd's int'l growth fund, that's been around a long time and seemingly consistent, with a good mix US/Foreign. Are any of these, or something else in line with this strategy? Or is the Vanguard a solid one for this in your mind?
    Starchild Starchild in Fund Discussions
  • When Investors Make Mistakes, And They Always Do, This Manager Pounces And Profits: (FTHAX)
    Talked about Bob Evans as I remember they were over priced and didn't last long in our community. The menu was full of descriptive BS that made You feel like you were buying something special. Only thing special was the bill as I remember. About like Boston Market. Thaler's mutual fund 2 month's track record don't know about it. Will come back in 10 years and look at it.
    Gary in Fund Discussions
  • Help with Int'l/Global
    @Starchild: FWIW.
    Since, the S&P 500 Index now derives better than 40% of it's earnings outside the US I use mostly global funds to gain additional foreign exposure. Please know that it has not always been this way since I became an investor some fifty years ago. So, to gain additional foreign exposure, years back, I used some global funds to offer me more foreign exposure. And, I still do today. My thinking, today, is to still use global funds which allows the fund manager to be somewhat adaptive to the markets by leaning towards which are felt to be the better performers between domestic or foreign holdings while still holding some of each.
    In the growth and income area of my portfolio my global equity sleeve consist of: CWGIX, DEQAX, DWGAX and EADIX. All of these funds pay good dividends.
    In the growth area of my portfolio my global growth sleeve consist of: ANWPX, NEWFX and SMCWX.
    Then there are global allocation funds that can also provide both domestic and foreign exposure. I own a good number of hybrid type funds. Three of them found in the growth & income area of my portfolio in the global hybrid sleeve are CAIBX, TEQIX and TIBAX. All of these funds pay good dividends.
    Most of the above funds I have owned for better than ten years with some more than twenty five.
    Best of luck in your seach for an international or global fund that finds your fancy.
    Old_Skeet in Fund Discussions
  • Help with Int'l/Global
    Well, international markets have not been great in the last few years and those active funds that kept more money in cash did better than the index fund. Index funds area almost always 100% invested.
    If you prefer a little less volatile fund take at FMIJX.
    Investor Investor in Fund Discussions
  • Help with Int'l/Global
    What international or global funds do you have? That way perhaps the recommendations could be better tuned to your portfolio. You do not want too much overlap among funds.
    My portfolio only contains VTIAX (Vanguard Int'l Total Market), and at a small %, but I've not been exactly thrilled with its performance over the years I've had it, and considering active as a better strategy for foreign. Thanks again for your help.
    Starchild Starchild in Fund Discussions
  • Here is what worked best ... this week ... within my portfolio.
    @MikeW: The barometer follows the S&P 500 Index. Another means that I use to find value is to see how far below a fund is trading form it's 52 week high. Take my two emerging market funds. DWGAX is off its 52 week high by about 12% while NEWFX is off its 52 week high by about 8%. With this, I'm finding more value in DWGAX than NEWFX. One of my investment strategies through the years has been to buy some in my most out of favor holdings in belief that they will again find favor with investors. Most of the time they do. And, for me, this has worked better through the years than momentum based strategies (buying what is hot and in favor).
    Old_Skeet in Fund Discussions
  • S&P 500? More Like The S&P 50
    You are correct in your description of the AF management approach, with different entities looking at different "sleeves". That's not really a "committee", as you rightly observe. However, if you actually look at the list of the various names of these Portfolio Managers, it's apparent that it is hardly a so-called "star system" either. That said, their management style has worked just fine for us.
    A significant portion of our AF assets are in IRA accounts. AF considers the total of all account assets, IRA or other, in the determination of their load schedule, which helps greatly in achieving no-load status. Additionally, some load funds also impose a load on shares purchased through dividend reinvestment. American Funds did not do that- all dividend reinvestment was always at NAV. Additionally, if one sold a fund, transferring the proceeds to their MMKT fund, and then later redeployed those proceeds for a fund purchase there was no load on that purchase either. These details are quite important in comparing one "load fund" company against another.
    Indexing was not an option in the years when we were building the majority of our asset base. I do use some indexing with our Schwab account, which was established for additional asset flexibility well after that major part of our asset building was accomplished.
    Old_Joe Old_Joe in Fund Discussions