Time to Bail out of Perkins Midcap Value (JMCVX) JMCVX is a conservative (M* rates it low risk), broadly diversified (almost 100 securities) fund that sits on the value/blend border (oscillating from year to year), tending toward large cap. It is not focused on midcap value, it just averages out that way.
How much of this is important to you in seeking a replacement? FSMVX matches most attributes - its portfolio leans a bit more toward large cap, and a bit more toward value, but both in minor ways. More significant is that its risk is rated average - still not a very risky fund.
VASVX is also slightly more value oriented, though with an average market cap matching JMCVX. M* rates its risk as below average - not quite as low as JMCVX, but in the "next" ballpark. Mona is correct that Vanguard recently added Penza Investment Management recently, but Donald G. Smith and Richard L Greenberg (of Donald Smith & Co.) came on board a decade ago, just three years after Mark Giambrone.
If you want to get a sense of how Barrow/Giambrone work with Penza and his team, you might look at American Beacon Mid Cap Value (AMPAX). From the fund inception until 2014, these two teams were responsible for the day-to-day management of that fund. ISTM that this is a respectable, though not awe inspiring fund - good risk/return, similar attributes to JMCVX, average risk and a bit pricy (compared with the other funds mentioned). Not a fund I'd look at to purchase, but one to see how these teams work together in a co-managed fund.
HIMVX isn't as close a match as the other funds. Its risk is higher (above average per M*) which IMHO goes along with a deep value leaning (vs. sitting on the value/blend line as do the other funds). On the other hand, it has somewhat more securities in its portfolio (about 175). Overall, it gives a bit greater variety in company cap sizes, and a bit less along the value/growth axis. While it has done well in the past few years (with markets soaring), its ten year record is almost identical to AMPAX - and management has been pretty stable for both funds over that period of time (making the comparison valid). Another indicator that the fund is more risky/volatile than the others - better in good times, worse in bad ones.
All of this gets me back to the question - what are you looking for in a replacement? If you're looking for a fund that spans a broad swath of companies, then a fund narrowly focused on mid cap value, whether active or index like VOE/VMVAX isn't going to do it.
Are you willing to look outside of Fidelity, or are you at least open to the idea of doing a move all at once (to facilitate purchasing TF funds at Fidelity)? In that case, you might also consider DHMIX (TF at Fidelity, more compact portfolio, leaning more toward small cap), or VETAX (NTF at Schwab, and a somewhat more focused market cap range, though not nearly as narrow as VOE/VMVAX).
Or if all you're looking for is a better fund, nominally labeled MCV, you might even look at FLPSX. A bit of a contrarian play in the sense that the fund is nearly a world fund, and the US market has been doing much better over the past few years.
Expense Ratio: SFGIX There are theoretical numbers and actual numbers. M* publishes both on a fund's
expenses page, but uses the actual on a fund's
summary page.
By "actual" I mean actual dollars and percentages spent by the fund, as reported in its latest (semi)annual report. By "theoretical" I mean the prospective expenses as speculated by its
prospectus.
It is worth noting that all the figures incorporate fee waivers. So both the "actual" ER of 1.4% and the "theoretical" ER of 1.2
5% are subsidized numbers. The "true" "theoretical" ER (per prospectus) is 1.66%.
The lower number (1.2
5% vs. the older 1.4%) going forward is a result of a reduced cap put into place by Seafarer last Sept 1. It does not necessarily represent a reduction in "true" expenses. On the other hand, Seafarer did reduce its declared management fees by 10 basis points at that same time - that represents a true reduction in ER.
7 Muni-Bond ETFs That Stay On Track FYI: Whether yields are 2% or 7%, investors will keep buying municipal bonds.
Except one major hurdle for ETF providers has been that muni-bond indexes are not always dynamic enough for the ETF to track. Because pricing mechanisms for some municipals can be difficult, especially if issues are small and thinly traded, investors must trust that prices reasonably reflect reality. This inefficiency can lead to drift from published NAV or premiums and discounts.
Regards,
Ted
http://www.marketwatch.com/story/7-muni-bond-etfs-that-stay-on-track-2015-04-04/print
Leaders & Laggards -- First-Quarter 2015
Expense Ratio: SFGIX Again, (and as usual) the monthly April Commentary was a great read. Thank you. Along the way, attention was paid to Seafarer. Did I miss it, or was the ER given as Morningstar has it, rather than the CORRECT ER, at 1.25%...?
Morningstar has the SFGIX ER at 1.4%. I'll be on the road, or else I'd join the Call with Andrew Foster, coming up. :)
June Rate Hike Now Appears Off the Table Come on, guys. Spring pollen counts, winter severity, soil temp inversion dates, labor strikes--- these aren't things that determine for the Fed what the interest rates should be. So what
are they using? She "hinted" during a speech last Friday (2
5 f*king times!); but the American press must have been too enraptured with her attire, or something, and they missed it. Here it is, developed by Gavyn Davies @ FT:
http://blogs.ft.com/gavyndavies/2015/04/02/yellen-shoots-for-equilibrium-interest-rates/
June Rate Hike Now Appears Off the Table The port strike was huge. Some industries like the apple growers lost 25-35% of their revenue due to not being able to export. Most of those apples just rotted.
The drought is going to have an effect too. While agriculture is not being affected by the CA. decision to reduce usage, they cannot depend on that going on for very long. If California agriculture gets hit, that could crimp this economy much more. A lot of food comes out if that state. Higher prices would follow.
Mark Hulbert: Investing Guru Predicts 12% Rise In Stocks Over Six months Someone is going to have to do more than "Research Work" for 63 years to claim Guru Status with me, But everyone has the privilege to pick their "Gurus":
His previous six-month forecast, for example, was that the S&P 500 by the end of March (this past Tuesday) would be between 2,160 and 2,200 — representing an increase of at least 9.5% over where it stood at the end of last year’s third quarter. As fate would have it, the S&P 500 rose “only” 4.8% over that six-month period.
not my kinda of Guru....tb
Russell 2500 Construction The firm manages four US mutual funds (as you'll see on their website). The same fund managers as your trust manage GW&K's small cap core (as opposed to your small/mid cap core) strategy. The small cap core strategy has a corresponding mutual fund (GWEIX), so that may give you a little better insight into the managers and the company
They also manage a fund offered in Finland, which supposedly invests in small and mid cap (American) companies,
55-8
5 of them, just like your trust. So it might be a closer match to the trust. Here's
google's translation of M*'s Finish page for that fund.
When I can't track a portfolio directly, I usually look for a clone. But even if this Finish fund is a clone, I'm not sure it's going to help you too much with tracking.
Here's a
WSJ article on Collective Investment Trusts (CITs)
June Rate Hike Now Appears Off the Table
Mark Hulbert: Investing Guru Predicts 12% Rise In Stocks Over Six months FYI: This aging bull market should be given the benefit of the doubt for at least another several months.
That cheery forecast comes from Sam Eisenstadt, who has more successfully called stocks’ direction in recent years than anyone I can think of. His latest forecast is that the S&P
500 SPX, +0.3
5% will rise to 2,310 over the next six months. If so, the market at the end of September will be 11.8% higher than where it stands today.
Regards,
Ted
http://www.marketwatch.com/story/enjoy-the-party-while-it-lasts-2015-04-03/printMusic To My Ears: Play It Again Sam;
4 Looming Questions for Dividend Investors This Year FYI: The first quarter brought a new record for the amount of dividends paid to investors, as covered in this week’s Speaking of Dividends column. Companies in the Standard & Poor’s
500 paid out a grand total of $93.
5 billion in dividends and next quarter’s tally should be even higher.
The S&P
500 dividend yield is 2.04%, (or 2.38% if you count only the 84% of companies that pay a dividend), but that’s still way below historic levels for S&P dividend yields.
Regards,
Ted
http://blogs.barrons.com/incomeinvesting/2015/04/02/4-looming-questions-for-dividend-investors-this-year/tab/print/
June Rate Hike Now Appears Off the Table
K1 from Oaktree capital group Back to Oaktree again; do you guys think it is necessary to file Disclosure Statement form 8275 if using the current K1 estimate from OAK
K1 from Oaktree capital group @ Ted When you stick with financial advice, I find it to be top notch. I will reconsider my MLP decision.
I guess here's the thing. I do not love the K1s. However, if you really want to own a Blackstone or a Oaktree or one of the Brookfield spin-offs or a pipeline co, you have to put up with it. You just have to really feel strongly about it (whether OAK or BX or something else.) Additionally, for most people I'd really stay stick with no more than 2-3.
I own 6 (optimally, I'd like to have no more than
5 in a given year) and I would have a difficult time selling any of them at this point. I'll admit that I even have to be a little better about being selective with these and, like everything else, have to really stick with "best ideas" only. There's one I had to do that I no longer own and one that I'll have to do next year that I sold after a couple of weeks early this year.
Interesting movement on ACDJX. @BenWP, Thanks for that tip. That is a interesting ETF and a new one at that. Can I imagine I am 2
5 years old again and buy that for the long haul?
@Junkster, Comparative pricing has been a thorn in patients sides. Selling a medication that costs relatively little to make at a high profit because it can save you the costs of surgery is kinda in the trickery dept. I do not bemoan the profits of any company but sometimes the reasons for the high prices are head scratching.
K1 from Oaktree capital group The one you can downloaded from their web is estimate; my Tax guy told me that I need to file a Disclosure Statement form 8275 if using this K1 estimate. I received all other final K1s except this one.
All Hail Jeffrey Gundlach, The New Bond King Yeah, the $100k taxable/$5k IRA are the minimums if you buy directly from DoubleLine, and as far as I'm aware that's the deal with (most? all?) the supermarkets too. The I shares (typically? always?) have a TF at the supermarkets, but the E.R. is 25 basis points lower than the N shares.
The etf has a little higher E.R. than the oef I shares, but it's lower than the N shares (which is like Pimco prices BOND, PTTRX, PTTDX).
Interesting movement on ACDJX. @JohnChisum: you might be interested in the discussion about the new Exponential Technologies ETF that just started trading under the symbol XT. The ER is .47% and assets went from nil to 600 million just last week. Rick Edelman put
560m of his clients assets in and I put in the other 40m. (A little late for April Fools.) The spread on XT has been only a penny or two, very low for a new fund. This fund is in no way comparable to your 130/30 fund, but it does hit "future stocks."
