FYI: This chart shows historical performance of the S&P 500 Index
throughout the U.S. Bull and Bear Markets from 1926 through
June 2018. Although past performance is no guarantee of future
results, we believe looking at the history of the market’s
expansions and recessions helps to gain a fresh perspective on
the benefits of investing for the long-term
Regards,
Ted
https://www.ftportfolios.com/Common/ContentFileLoader.aspx?ContentGUID=4ecfa978-d0bb-4924-92c8-628ff9bfe12d

Something I don't understand is why any investment (aside from cash equivalents) should be considered acceptable for short term needs:
"If you're selling out of an active MF within 6 months, then you have no business investing in it. Just buy a bunch of index ETFs or a target date fund"
Active bad, passive good?
"These are long term investment products unlike individual securities or ETFs."
It's okay to use any investment so long as it has low/no commissions?
We can dismiss the impact to the fund itself - that's taken care of by the fund's own redemption fee (which goes back into the fund to compensate it for trading costs/market movement). Here we're talking about brokerage fees, not fund redemption fees.
So the question is, from the investor (as opposed to fund) perspective, does it ever make sense to count on index ETFs or target date funds, or individual securities or any (active or index) ETFs, as a place to keep short term (under 6 month) money?
IMHO, the answer is no, with the possible exception of individual securities, if you're buying them because you (think you) see an obvious mispricing that you want to take advantage of and flip quickly.
Actively managed funds (whether open end or ETF) may be more unpredictable in the short term than indexes, but that doesn't mean one can count on an index fund not taking a dive in the next few months.
Target date funds, especially in the short run, are basically just hybrid funds (glide path significantly affects allocations only over years). With roughly zero correlation between stocks and bonds, sometimes the components will move in opposite directions, sometimes not. You don't know if this time, this month, they're both going to drop.
https://www.ft.com/content/7914a096-48a9-11e8-8ee8-cae73aab7ccb
"in case something comes up and you need to sell"
I read that as an unexpected, large expense (roof blew off, car suddenly died, etc.). If one's six month plus emergency fund isn't enough to handle the rare, unexpected expense, then sure, one will need to sell some longer term investment.
I wouldn't expect a need like that to occur more than once every several years. It's not worth picking a brokerage on the possibility of incurring a $50 fee every few years. It seems better to focus on routine costs/fees, service, accessibility, etc.

@hank, concur with your view on the market condition and the political turmoil. Opportunities with 25% discount are difficult to come by unless US enters recession now. Thus I continue to watch to find better entry points.

@hank Emerging markets, as measured by EEM, down about 20% since their high in January... so just 5% more to go.

Funny that TRP had a 90 day holding period with a 2% 'early trade' penalty and TDA has a 180-day holding period for a $50 'early sale' penalty.
I just dumped a TRP at Day 90 to avoid the 2% (which would've been a few hundred bucks) but still got hit with the $50 TD penalty. 180 days is asinine, imho.

Just me. But I don’t think this is a good time to be buying anything you don’t already own (unless you’re still working and contributing regularily).
Admittedly, this comes from someone who’s on the conservative side. But there’s just too many “balls in motion” all at once here to give me any comfort. We’ve got some serious investigations going on, increasingly bitter political strife, deficits made worse by the tax cuts, a trade war, a Federal Reserve raising rates, legitimate concerns over valuations - and we haven’t had a really nasty recession / market correction in over a decade. Why would any of this make you optimistic?
I’m not recommending folks sell what they already own or that they stop contributing to their tax deferred plans. But the question from JohnN presumes, I think, that this may be a good time to do some tactical / strategic buying - that you might not normally do. Find me as asset class (except for gold) that’s down 25% or more over the past year and I’ll take a good hard look at it.

I believe the amount is tied to what is equal to an deductible/non-deductible retirement account. I believe it was $6K initially. Maximum investment amount initially advertised was $100K, but due to overwhelming interest, maximum investment was lowered to $50K to appease investors.
From the 2015 Allocation email:
"Thank you for your interest in our new Global Micro Cap Fund (GPMCX). As anticipated, requests from current Grandeur Peak Fund shareholders far exceeded our $25 million target. During the Indication of Interest window we received requests totaling over $85 million. We have allocated the available $25M across all parties who expressed interest. Our allocation objective was to be fair and consistent across shareholders and to allow all interested shareholders an opportunity to purchase the Fund. We capped larger requests at a consistent level in order to keep our total allocation to around $25M. Keeping the Fund at this very small size will allow us to be fairly unconstrained as we look for interesting micro-cap investments across the globe.
,,,We will hold your allocation through October 30, 2015, so please ensure all trades are placed by that date. If you wish to set up an automatic investment plan, you may do so, but the maximum purchase size is $500/month (this amount can be in addition to your stated allocation). Unlike our other hard closures, retirement accounts will not have unlimited access to make future purchases in this Fund. Retirement accounts will be capped at $6000/year for future purchases."
From the most recent prospectus:
https://www.sec.gov/Archives/edgar/data/915802/000139834417011117/fp0027624_485bpos.htm
PURCHASE AND SALE OF FUND SHARES
As of the close of business on December 31, 2016, the Fund is closed to both new and existing investors seeking to purchase shares of the Fund either directly or through third party intermediaries, subject to certain exceptions for participants in certain qualified retirement plans with an existing position in the Fund and direct shareholders with existing accounts who may purchase up to the amount of the current IRA catch up limit per year in additional shares, regardless of account type. The Fund’s investment adviser retains the ability, subject to the oversight of the Board, to make exceptions to any action taken to close the Fund or limit inflows into the Fund.

@Derf: I can't recall how I found out, but after opening my account in 2015, I made purchases in 2016 and 2017 for $6K each year. I'm pretty sure GP announced it and $6K is the yearly limit. Someone may remember what the maximum opening purchase limit was; $25K sticks in my mind. I put in less than that.

@sea: GPMCX is 50% invested in Asia, although not a great deal in emerging Asia. It's a bad year for the region's stock markets. The fund is under $40M, turned over about 46% according to latest report, so I hope the managers are spotting some inefficiencies and taking advantage. I'm holding. I could add to my position because I haven't taken advantage of the annual "window" this year.

@Ted - just one example:
"The new preferred from ARES is non-cumulative and redeemable in 5 years which is typical for preferred issues. What is not typical is that these shares will generate a K-1 at tax time instead of the more typical 1099. This is because ARES is a limited partnership. We are aware that many investors shy away from issues that generate K-1’s and if you are one of those people this is not the issue for you."
From:
https://www.dividendinvestor.com/limited-partnership-ares-management-sells-a-preferred-issue/

@TheShadow: With all due respect, please tell me when CPMCX has had a smooth patch, plus an outrageous ER. of 2.00% Ouch !!!
Regards,
Ted :)
1-Wk. 65 Percentile
1-Mo. 97 " "
3-Mo. 90 " "
YTD. 86 " "
1-Yr. 72 " "

@sea: Fund doesn't interest me even if were open to new investors. Since inception, 10/20/15, the funds performance is in the 72 percentile for one year, and 86 percentile YTD. The Linkster is not impressed with Grandeur Peak Funds. I doing just fine without them.
Regards,
Ted

@Ted for a little “higher on the risk spectrum” floating rate preferred (actually a note...it’s debt, not a preferred stock, so no K-1 issues to deal with) to add to something like ALLY-A, maybe look at NSS (NuStar Logistics 7.625% fixed-to-floating subordinated note). It’s yielding approx 9%. Holding about 2% position and not looking to add, but would if it was smaller or I didn’t own it.

FYI: f you want to buy Bitcoin without actually buying Bitcoin, you now have another way to own the controversial digital currency.
Regards,
Ted
https://www.fa-mag.com/news/there-s-now-an-exchange-traded-bitcoin-note-that-american-investors-can-buy-40305.html?print

This starts by saying "choose the manager not the fund", but goes on to explain how you can struggle to buy the fund. Why not simply follow this advice and consider other funds run by the same manger?
"Whoever you give a fund share to then becomes an existing investor who can also make additional investments and give away fund shares."
That might work for a fund like EISMX, where the prospectus reads:

The Fund has discontinued all sales of its shares, except shares purchased by: (1) existing shareholders (including shares acquired through the reinvestment of dividends and distributions and those who received Fund shares in connection with a reorganization);

but will it work with a fund like BCSIX? For some funds, in order to buy more shares you not only need to be an existing shareholder now, but also as of the date the fund closed. The prospectus for BCSIX reads:

Existing shareholders as of October 18, 2013, the Fund’s closing date, are permitted to make additional investments in any account that held shares of the Fund on that date

But not into a younger account.
The article says that 17 out of 23 funds that "passed muster" were open. Then goes on to say that the five managers listed here are the ones running the closed funds.
I always wonder about anonymous financial writers who say that 23 - 17 = 5 :-)
Maybe these five managers ran all six closed funds? (So what's the sixth fund?) Is it saying that Fried (Primecap) is the only manager of POAGX that "passed muster"? Seems it is really listing funds (five of the six), not managers.

With today's lower expected return environment, potential for rising interest rates, inflationary pressures and increasing volatility, it is critical for investors to maintain a well-designed allocation to alternatives that can help their portfolios weather uncertain markets," said Matthew Bass, head of global product strategy and alternatives business development at AllianceBernstein.
PRODUCTS
Assetmark launches 12 new portfolios
AssetMark announced 12 new portfolios coming to its platform, which the firm expects will drive higher returns.
"Dimensional Fund Advisors' robust investment process addresses a growing advisor need for low-cost, tax-efficient strategies," said David McNatt, senior vice president of product management and development at AssetMark.
The portfolios, known as AssetMark MarketDimensions, are aligned with six risk profiles to target investors in different life stages, says the firm.
Global X introduces new ETF family
Global X is releasing two new ETFs aimed at helping investors achieve a specific income level: the Global X TargetIncome 5 ETF (TFIV) and the Global X TargetIncome Plus 2 ETF (TFLT). They have expense ratios of 0.77% and 0.78%, respectively, according to Morningstar.
The funds were developed by Wilshire Associates. "We've structured indexes that aim to target specific yield objectives while mitigating risks," Jason Schwarz, president of Wilshire Analytics and Wilshire Funds Management, said in a statement.
TFIV will seek a 5% yield, net of fees, and TFLT will seek the current 10-year US Treasury note plus 2%, according to the firm, which expects the funds to pay distributions monthly.
Innovator launches ETF with structured outcomes
Innovator Capital Management listed the Innovator S&P 500 Defined Outcome ETF, which offers protection levels of 9%, 15% or 30% over a near one-year period, the firm said.
"No other ETFs in the market today seek to offer investors defined exposures to the S&P 500, where the downside protection level, upside growth potential and outcome period can all be known, prior to investing," said Innovator CEO Bruce Bond.

Sorry... that's funny... Got it in my email just fine probably already subscribed
Vanguard proposes global credit bond fund
Vanguard filed preliminary registration for a global credit bond fund, which the firm expects to launch in November.
The fund will be actively managed and aim to invest in corporate and non-corporate obligations, excluding government-guaranteed issues, the firm said. The fund, a portion of which will be hedged to the U.S. dollar, will offer investors two share classes: Investor Shares (VFINX), with an expense ratio of 0.35%, and Admiral Shares (VFIAX), with an expense ratio of 0.25%, Vanguard said.
Vanguard is cutting commissions for 15 mutual fund shares.
“Our clients are increasingly looking to reduce their home bias and harness the return potential and diversification benefits offered by the international equity and fixed income markets,” said John Hollyer, global head of Vanguard’s fixed income group, adding that the fund’s “wide range of security selection opportunities and regional and sector exposures, combined with the flexibility of active management, will make it an attractive core or satellite portfolio holding.”
Alts made available to more clients at AllianceBernstein
AllianceBernstein announced it has reached an agreement to provide iCapital Network's alternative investment platform to high-net-worth investors, RIAs and multi-family offices.
The partnership will simplify access and streamline the subscription process and performance reporting, improving the advisor and investor experience, the firm said.

https://www.financial-planning.com/news/vanguard-files-paperwork-to-launch-a-global-credit-fund-news-scan?feed=00000153-9f90-d098-a37b-dfb9d93c0000
August 15
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Vanguard proposes global credit bond fund
Vanguard filed preliminary registration for a global credit bond fund, which the firm expects to launch in November.

Have some $$ coming in today from matured bonds... Likely add Brk.b and Sp500 or Qqqq Another friend told me a great biotech stocks MNK (or Preferred MNK stocks_will take a look). Probably over wt in bonds in private brokerage acct. Still 80/20 distribution in Tsp.
Anyone buying undervalued Em which took a beating due to turkey... Sounds like a recession coming due to Turmoils in em... Folks maybe running away from China also. Thx for any suggestions
https://finance.yahoo.com/news/asian-shares-hit-one-low-020426223.html

https://www.thewealthadvisor.com/article/how-invest-mutual-fund-closed-new-investors
August 15, 2018
Two weeks ago I published a list of 17 mutual funds whose managers have been at the helm for 10 years, outperforming the S&P 500's 10 year return of 10.61% and their category benchmark by enough of a margin to make a difference to investors.