Consuelo Mack's WealthTrack Preview: Guest Philippe Bragere-Trelat, Franklin Funfs, & Jason Trennett FYI:
Regards,
Ted
WEALTHTRACK Subscriber,
Turmoil, volatility and uncertainty have long been considered enemies of stock markets. They certainly proved that once again in the days immediately following Brexit on June 23rd, when British voters passed a referendum to exit the European Union. For a few trading sessions investors fled stocks and other assets perceived to be risky and flocked to traditional safe havens such as gold, long-maturity U.S. Treasury bonds and debt of other countries considered to be of high credit quality, including Germany, France and Japan.
According to bond rating firm Fitch, sovereign debt with below zero yields increased by $1.3 trillion in the month of June to a total of $11.7 trillion, boosted by the Brexit vote. Longer maturity debt was particularly popular. Japan’s negative yielding debt grew about 18% to $7.9 trillion, France’s by 13% and Germany’s by 8% to over $1 trillion each.
Britain is the first country to exit the 28 country European Union, which took its current form in 1992 as a single market allowing goods, services, money and people to move freely among member states, as if it were a single country. It has its own parliament, located in Brussels, with the ability to regulate a wide range of areas including the environment, transportation, consumer rights, employment rules and even such things as mobile phone charges and electric tea kettles.
Its single currency the Euro wasn’t created until 1999. The United Kingdom opted to keep its own currency, the Pound Sterling, as did several other member countries including Denmark and Sweden.
Why did the Brexit vote set off such a firestorm in global markets? How much of a threat is it to the global economy and financial markets now?
Joining us on WEALTHTRACK this week are two market pros who have been tracking these developments closely. Philippe Brugère-Trélat, Executive Vice President of Franklin Mutual Series is a contrarian, value investor with years of experience investing in Europe and other international markets. He is Co-Portfolio Manager of three funds, all rated 4-star by Morningstar. He has managed Franklin Mutual European Fund since 2004, and both Franklin Mutual Global Discovery Fund and Franklin Mutual International Fund since 2009.
Our other guest is one of our Financial Thought Leaders. Jason Trennert is Co-Founder, Managing Partner and Chief Investment Strategist at Strategas Research Partners, an independent investment strategy and macroeconomic firm celebrating its tenth anniversary this year.
Identified by Barron’s as one of “Wall Street’s Best Minds”, Trennert and his team are known for their original and timely economic, political and market analysis and identification of investment themes. The firm recently started Strategas Asset Management to enable clients to invest in portfolios based on three of those themes. One is Policy Opportunities, another is Large-Cap Dividend Growth and the third is New Sovereigns, formerly their Thrifty Fifty portfolio which we have discussed on previous episodes. I will ask Trennert for an update.
If you miss the show on television this week you can always catch it on our website. We also have an EXTRA interview with both of our guests. As always, we welcome your feedback. Click on the Contact Us link on our website, or connect with us on Facebook or Twitter.
Have a great summer weekend and make the week ahead a profitable and a productive one.
Best Regards,
Consuelo
Art Cashin: "Oil Has Asserted Itself Again"
DBLTX, TOTL or both?
Vanguard Attracts Record New Money As Investors Flock To Passive @Sven: Yes indeed. And then there's the question of 'active share' and how a fund does viz-a-viz the market and/or its competitors. I hold a few funds with high active share, and it's nice to know they zig when the rest of the herd (er, market) zags. Maybe not enough to offset any decline (especially when all correlations are
1) but drawdowns tend to be managable by comparison.
DBLTX, TOTL or both? @BitzerDo your other bond fund holdings have any overlap/duplication of holdings of these Doubleline funds?
As noted, both are mortgage leaning; with DBLTX having about 87% of holdings stated as AAA credit quality (as of 3-3
1-
16). The stated credit quality of TOTL is lower. If I was interested in this bond area at this time, I would have a coin toss.
Of little help, I suspect; but just a look.
DoubleLine's Gundlach: Gold Remains Best Investment In 'Shaky' World
Laura Geritz (Wasatch) is out I am not very familiar with DRFRX, but its managers are also on the team of DRESX (Driehaus Emerging Markets Small Cap Growth Fund), which MFO profiled here:
http://www.mutualfundobserver.com/2014/03/driehaus-emerging-markets-small-cap-growth-fund-dresx-march-2014/I hold DRESX and it has done remarkably poorly over the past year, even by emerging markets standards. Incidentally, all of the other Driehaus stock funds have extremely high turnover -- over 300% in DRESX's case -- although this information isn't available yet for DRFRX. Just for what it's worth.
Laura Geritz (Wasatch) is out
The biggest issue with the Driehaus fund is the $250K minimum investment/$100K for an IRA but if you're investing that kind of money then I'm also impressed with their approach. Is anyone aware of exceptions being made?
LLJB - What impresses you about their approach? They seem to fly under the radar, so any info you can provide would be very helpful.
Thanks!
Laura Geritz (Wasatch) is out DRFRX is available at TDAmeritrade, taxable account, for $10,000 minimum. This has been the Driehaus practice for as long as I can remember.
Laura Geritz (Wasatch) is out @LLJB @claimui$2000 in fact for an IRA at TD. Called them early this a.m. and received the answer I posted above, emailed the firm for confirmation and was told $2,000, came back here, saw LLJB addition, did a chat with another TD rep, and was told 2K. 'Enuf said!
@LLJB I note that you posted in Nov.
14 when news of the fund's registration appeared here. Well, we've come a long way since then with a TD minimum of $2000!
I have a call in to my contact at Driehaus and will ask about "retail money" and some other items about the fund.
Best to all.
DoubleLine's Gundlach: Gold Remains Best Investment In 'Shaky' World
DoubleLine's Gundlach: Gold Remains Best Investment In 'Shaky' World FYI: Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Wednesday that gold remains the best investment amid fears of instability in the European Union and prolonged global stagnation, as well as concerns over the effectiveness of central bank policies.
Regards,
Ted
http://www.reuters.com/article/us-funds-doubleline-gundlach-idUSKCN0ZM25Z(As Of 7/5/
16)
GLD: 27.6
1% YTD
SLV: 43.90% YTD
CEF: 45.65% YTD
Laura Geritz (Wasatch) is out @claimuiTD Ameritrade requires
100K for an IRA, the same as Fido, Scottrade, and Schwab.
DRFRX
TD Ameritrade says on their site that minimums may differ from what you see because they just take the info from Morningstar. I checked with customer service about taxable accounts and the minimum is $
10K so I assume this is one of those case where you need an account to see the real minimums or you have to check with them. I also checked with customer service at Fidelity, where I do have an account and the minimums are the standard $250K/$
100K IRA. Schwab's public information says the same but I didn't check with customer service.
Based on the minimums other than at TD Ameritrade they're not trying to bring in a lot of retail money but I almost wonder whether they're waiting for a time that seems better for Frontier Markets and mostly keeping it for their internal purposes and institutional clients in the meantime.
