Dear friends,
There's always a balance between broader issues and discussions of individual funds. This month tilted in the direction of funds.
AMG Chicago Equity Partners Balanced (MBEAX): a singularly low-profile, low-risk balanced fund. US equities, including a larger serving of small and mid-caps than most, plus high-grade bonds. For any comparison period that takes down cycles into account, it has gold performance. For comparison periods that look narrowly at periods marked by rising markets (the easy-to-find 1/3/5 year stuff), it's a notch down. Even in those markets, it's risk-adjusted returns are better than its peers or Vanguard STAR.
T. Rowe Price Global Multi-Sector Bond (PRSNX): formerly TRP Strategic Income, we profiled it in 2011 and I own it in my retirement portfolio. It's the first in a series of profiles labeled "left behind by Morningstar." As Morningstar focuses more resources on passive products and big funds, bunches of funds that it once recognized by meritorious get dropped from coverage. In 2011, their final word was "promising but it needs a longer track record before we upgrade it." Five years later and it's a consistently top 10 fund but still no notice.
GQG Partners Emerging Equities (GQGPX): An Elevator Talk with Rajiv Jain about his new fund.
Symons Concentrated Small Cap Value, Institutional: an interesting possibility. It'll be by far the most concentrated small cap fund out there and is based on a successful small SMA cluster. $1 million minimum, so it's mostly FYI.
Osterweis Emerging Growth (OSTGX): just wanted to share word of Jim Callinan's return with the rest of the world.
My essay mostly focused on the wisdom of keeping your head when all those about you are losing theirs. Ed addresses the ugly reality that a number of big name firms are likely in their last decade. And Bob C begins walking folks through the decisions to be made in the transition to retirement.
For what interest all that holds, and with thanks for your patience and good spirits,
David

Hi VF,
I feel, you are a pretty skilled investor to present such a question to the board. My comments are not ment to be investment advice ... etc.
I have owned American Funds for many years, since the late 50's early 60's; and, I currently own three of the funds you have listed (but A share class). I feel they are a fine large cap fund shop. In doing an Instant Xray on your subject hypothetical portfolio consisting of each fund you list in the amount $250.00 each I am seeing a good bit of duplication. With this, and if it were for my own portfolio, I'd add the Small Cap World Fund and drop the Global Balanced Fund to gain some exposure in the small/mid cap space.
I have linked the data entry page for Morning's Stars Instant Xray analysis. This might be something you'd benefit by spending a little time with. In addition, I'd do a risk tolerance and need analysis on yourself to see if what you have assembled fits with your investor profile determined by the analysis.
Old_Skeet

FYI: Don’t fire your investment manager just because he failed to beat the stock market last year.
I can already hear the howls of protest: If trailing the market isn’t a fireable offense, then what is?
My answer: It’s not that past performance doesn’t count; what’s irrelevant is performance over the recent past. Calendar-year performance, for example, tells you next to nothing about whether your manager is a good bet for future returns.
This is an exceedingly difficult lesson for us to take to heart. Even Harvard University, with the largest endowment fund in the world, apparently is having trouble with it.
The university in late January laid off more than half its investment-management staff. Though the institution’s press release announcing this didn’t mention it, the layoffs come on the heels of a disappointing fiscal year in which the endowment actually lost money, lagged behind its benchmark by 3 percentage points, and trailed the total return of the S&P 500 Index SPX, +0.73% by 6 percentage points.
Regards,
Ted
http://www.marketwatch.com/story/harvard-teaches-investors-a-lesson-in-what-not-to-do-2017-01-31/print

So now that American funds are available NTF, I've been toying with DCAing a small amount every month in them. Needless to say I will do so opportunistically, not regularly. Low minimum is attractive. However, I'm still distressed from the fact they used to be a load shop and from M* over the top praise for this fund family.
Given my age, I was thinking about the following funds instead of all equity funds. Thinking these are a little less aggressive and since I still have some hair left, reasonably steady.
BALFX, IFAFX, CIBFX, GBLEX.
The idea is to start with $250 in each = $1000, and then repeat $1000 multiple times. Eventually I would stop at $10K in each fund invested over time. This was money I was keeping aside for my daughter's college, and I'm happy to say it does not look like we will need as much as I thought we would (good I married smart and there was appropriate gene transfer). Now I don't want to buy more funds than I need so if only one or two would likely achieve the same outcome, I would rather do that. Starting this post with the hope those who have invested in American funds can offer some insight/opinion.

FYI: Investors have long taken comfort in the steady returns their bond funds have provided, particularly when stocks go on another of their gut-wrenching drops. But the safety blanket is getting more threadbare, a result of simple math. Bonds don't pay as much interest as they used to, following a decades-long drop in interest rates. That means bonds pay less in income and also raises the threat of a rise in interest rates. Higher rates mean prices for bonds, whether individual ones in your brokerage account or the ones in a bond fund you own, will fall because their payouts look less attractive than those of newly issued bonds.
Even though bond funds provide less cushion than before, they still are the best defense for a 401(k) account, fund managers say. Bond funds will still hold up better than stocks during downturns. And investors may be in need of some safety soon. U.S. stocks are more expensive relative to their earnings after more than tripling since early 2009, and Wall Street questions how much more they can rise without strong growth in profits. President Trump's promise to shake up the status quo could also mean big swings for stocks.
Regards,
Ted
http://bigstory.ap.org/article/f669cd236fa0432495631608bc0cde83/what-safe-part-your-401k-still-can-and-cant-do

Welcome to the club. My PayPal account got hacked by somebody in Russia about 5 years ago. They were "selling" products in my name and pocketing the $$ without shipping anything. Nice huh? We took appropriate measures once we learned about it.
Sorry to hear this David - And at a bad time with Chip temporarily down.

Today, he sees the most opportunity in bank loans and asset-backed securities.
Is there anybody that does not like bank loans?? They have been stellar now for the past year along with junk corporates and emerging markets bonds. But this universal consensus worries me to death. From being 100% bank loans in late fall I am now 55% junk and 45% bank loan which is the reverse of where I was last week.
Of course junk worries me to death too. At least there I am comforted by the fact that the ultimate junk bond guru on the planet is still saying they are ridiculously overpriced. Something he has been saying for the past 15% on the upside. Then again, in this game it pays to always worry and not be complacent. That way you don't get blindsided by the likes of a 2000-02 or 2008.
Edit; Being a stickler for detail make that 58% junk bonds 42% bank loan

FYI:(Click On Article Title At Top Of Google Search)
The ALPS Sector Dividend Dogs ETF has a three-year annual return of 12.91%, better than 98% of its Morningstar-category peers.
Regards,
Ted
https://www.google.com/#q=Betting+on+the+Dogs+of+the+S&P+500
M* Snapshot SDOG:
http://www.morningstar.com/etfs/arcx/sdog/quote.html
Lipper Snapshot SDOG:
http://www.marketwatch.com/investing/Fund/SDOG
SDOG Ranks #31 In The (LV ) ETF Category By U. S. News & World Report:
http://money.usnews.com/funds/etfs/large-value/alps-sector-dividend-dogs-etf/sdog

FYI:
Regards,
Ted
Lipper Equity Mutual Funds
http://www.allaboutfunds.com/performance/iops.pdf:
Lipper Fixed-Income Mutual Funds: (Taxable)
http://www.allaboutfunds.com/performance/fixed_iops.pdf As 10/13/16
Lipper 25 Largest Mutual Funds:
http://www.allaboutfunds.com/performance/lg25.pdf As 10/13/16
Lipper Mutual Fund Yardsticks: As 10/14/16
http://online.wsj.com/mdc/public/page/2_3023-fundyrdstick.html?mod=wsj_mdc_additional_mutualfund
Lipper Mutual Fund Indexes: As 1014/126
http://online.wsj.com/mdc/public/page/2_3020-lipperindx.html?mod=wsj_mdc_additional_mutualfund

This is my first post and I'm hoping to learn some things about mutual funds I may not come across normally.
I was wondering if anyone sees any value in the VIX as giving some indication as to stock market highs and lows.
It is pretty low now which could mean a high in stocks.
https://finance.yahoo.com/chart/^VIX#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

There is plenty of research that shows that manger who has large amounts invested in his/her own fund tend to outperform those that don't. My experience, or lack thereof, does not invalidate my thoughts (for the record, I probably have more experience than most since I actually work in the industry). I understand the point incredibly well. I just don't agree with it. Either your best ideas are in the fund or not. If they're not, you're not serving shareholders first. If they are and you're not invested heavily, you're not maximizing your own wealth.

Confirmation bias at its best...

Like I said, why do you need research? I'll give you research. Searcrh on Google once. Search on google twice. RE-search. You just do what feels right. Sometimes when things smell, it is really the brown stuff.
Just like anyone else, you may have 4 things you look for when you buy a fund. Some of us have 5. Not sure why 1 more is so bad.

@JoJo26, I am sorry but when some manager comes out of nowhere and wants to manage my money, he better be prepared to lose his shirt like me. It's one thing blindly investing into GP funds knowing well before that they had a stellar record of managing and stewardship at Wasatch.
I will never invest in a funds without manager ownership. When I made a mistake I have sold. When others have pointed out no manager investment I have sold. And I don't even ask any questions later. It's not a matter of returns, it is a matter of principle. It is irrelevant to me what research says about manager fund ownership. If research showed companies like Wells Fargo who screw customers become the best of companies in the aftermath, does not mean I'm going to open an account with them or even consider doing so. They are dead to me until they are the last bank on earth (since I'm not a hypocrite, but they freakin' better be the last bank on earth). There is a clear choice between who you chose to invest and do business with, and when you have that choice I think we take it. THAT is the only control we have.
And ownership debate has to be relative. It is one thing staying invested in FAIRX when manager has no investment and another when you know he has $46 MM + (last time I checked fews years back). It does make a difference. One reason I never invested with Bill Miller who said he had $1MM investment and was buying a $70MM yacht.
It would be good to know a manager who has $500K invested in his fund, what his net liquid worth is. If is net liquid worth is less than $2MM (say) and he has $500K (for instance) invested that's commendable. We don't know. If I see GP managers start buying yachts for $70 MM I will sell.

It looks like the only manager that has over a $1 million in any fund is Gardiner. He's also the only one to have more than $500,000. Everyone else has $100,000-$500,000 or less. The Global Micro cap only has two people with anything in it (per SAI).

and $50 in all cases

https://www.sec.gov/Archives/edgar/data/915802/000104916917000049/fit-grandeurpeakemopm22017.htm
497 1 fit-grandeurpeakemopm22017.htm
FINANCIAL INVESTORS TRUST
SUPPLEMENT DATED FEBRUARY 1, 2017 TO THE PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR THE GRANDEUR PEAK
EMERGING MARKETS OPPORTUNITIES FUND (THE "FUND") DATED AUGUST
28, 2016
Effective January 30, 2017, Spencer Stewart is no longer serving as a Portfolio Manager of the Fund. Therefore, all references to Spencer Stewart with respect to the Fund in the Prospectus and Statement of Additional Information are hereby deleted as of that date. Blake Walker and Zach Larkin will remain as Portfolio Managers of the Fund.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE.

Assuming we are in a period of rising interest rates, I would urge caution on any aggressive, long-duration, HY investment. Most investors are not seeking long-term volatility, and that is exactly what they will likely get. Search for non-index funds with exceptional managers who have a long track record who manage the fund cautiously and who hate to lose money. There are a handful out there, but those who look for good RELATIVE returns could have disastrous years.

Possibly not. HYBs act more like stocks then bonds.
https://www.invesco.com/pdf/HYBRR-FLY-1.pdf
http://news.morningstar.com/classroom2/course.asp?docId=5401&page=4
http://blogs.barrons.com/incomeinvesting/2016/04/12/surprising-strategy-for-high-yield-go-down-in-quality-if-rates-rise/

Hi Guys,
Jack Bogle is a great man. He changed the investment business forever and in so doing he significantly reduced investment costs for all investors. I remember when the entry costs for buying a mutual fund were obnoxious. Yes, for the last 40 or so years, Bogle has sung the same song. But it is a song that has revolutionalized an industry to its very core and deserves repititions.
Index investing now owns roughly 30% of the mutual fund industry market share and is gaining every day. Even a giant agency like the state of California is firing some of their active investment management and replacing them with Index advocates. Returns are likely to improve with that decision as costs are reduced and bad decisions are eliminated.
Index investing will never totally replace active investing management. We need active investors for price discovery purposes. I have seen TV shows that estimated we only need about a 20% to 30% active market players to satisfy that purpose. Indexing still has a long growth potential.
There is reliable data on the average fund holding period for the individual investor. It's about 3 years. Equity fund investors hold their funds for a little over 3 years while bond fund holders are slightly less patient at just under a 3-year average period.
That trading frequency generates sad outcomes for the average fund holder since his return is only about 1/2 of what the fund he invests in earns. Women do better with their investment decisions than their male counterparts.
Here is a Link to the DALBAR site that has a ton of investor data:
https://www.qaib.com/public/qaibquarterly
I suspect most MFOers do not subscribe to the DALBAR service for access. So here is a Link to a brief summary of the DALBAR data designed to encourage a sale of their service:
http://www.dalbar.com/Portals/dalbar/cache/News/PressReleases/DALBAR Pinpoints Investor Pain 2015.pdf
This DALBAR summary tells the sad tale without comment. Here is another Link that interprets these same investor data sets:
https://blog.folioinvesting.com/2012/05/11/the-most-common-mistake-investors-make/
Enjoy. I hope many MFOers are among the more patient investors. Trading frequently is indeed hazardous to our wealth.
Best Wishes.
Additional Input: I referenced the DALBAR research without providing an accessible Link. I just discovered a Link that does yield an example of the DALBAR work. Here is that Link:
https://www.bellmontsecurities.com.au/wp-content/uploads/2015/04/2015-DALBAR-QAIB-study.pdf
I have not read their report in detail, but it appears to support the observation that individual investors suck on average. Of course, no MFOers are average!

T. Rowe Price? According to M*, it offers 155 different funds (counting only one share class per fund). But that still includes several clones, e.g. TRAMX and TRIAX (Africa &Middle East - "regular" and Institutional funds). Knock those off and you still have about 115. If you like counting clones, add in about ten VA clones, not to mention clones sold by other companies, such as ITCSX (a Voya-marketed version of PRWCX).
PRCPX might survived if structured as an interval fund. Several bank loan funds started out that way.
Not sure what you mean by average active investor. Do you mean the average investor who invests largely or primarily in active funds? That would be interesting to study.
Or do you mean the average of investors who actively (i.e. frequently) trade? That wouldn't be so interesting, because by definition they're all trading a lot, regardless of what their average is.

The jury's still out on his broad premise. But gotta like this zinger:
"We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a fund that's hot and then it turns cold as all hot funds eventually do. And then they get out. Well, buying at the high and selling at the low isn't going to leave you a satisfied shareholder ..."
-
Maybe there's data somewhere on the average fund holding period today of the average active investor? Some still buy and hold for decades. A few probably never look. But an increasing number will dump a new fund if it hasn't performed well for a few months. Than they'll buy whatever's been hot lately. Strikes me like shopping for a new home or car and buying whichever one's become the most expensive lately.
Blame the fund companies for a lot of this. How many different funds does T. Rowe now offer? (Maybe 75 or something like that - not counting different classes). With the ease of online trading and an itchy trigger-finger one can appreciate how hard it is for many to stay put.
See PRCPX T. Rowe Price Credit Opportunities Fund. Hot dang!

DSEUX is available at Fido with TF. DLEUX is not (yet) available.

$5K min in IRAs, but $100K min in taxable accounts.