Edward Jones' Proprietary Funds Are Outselling Nearly All Active Managers The more I read, the more I think VMVFX (and maybe a bond fund, if one doesn't want to view SS payments as a bond.)
I look at fees as a percentage of what I earned that year. If I pay 1% and earn 5%, I pay 20% of earnings. (VMVFX still costs me >6%.) If I lost money, I don't even want to go there. If someone had been with me from year zero (which NEVER would occur, because I was in debt at year zero), had advised me well, and I had on the average earned 5 to 8 X her charges yearly (10 x would be better), I'd probably be happy, even if she had taken 15% or more of my earnings.
But, if someone wants me to pay them $50K - $200K over 10 years, they had better promise me $0.5 to 1M better than VTI during that interval to justify their cost. If all they are offering is downside protection, they had better cost much less. (Timing may be everything, but it's extremely difficult, and you probably still lost money.)
Since I don't believe it is 4X more difficult to advise a $2M portfolio than one of $500K, I would opt for hourly reimbursed advice even if it's padded by a couple of hours, if I trust the adviser.
RNDLX DBLFX= DLFNX, for those who don't hold at least $100,000.00 in the fund.
RNDLX The ER of the fund itself (according to their fact sheet) is 1.16% -- the remaining expenses are for the underlying funds.
RNDLX has a CEF allocation and a bond allocation (currently divided about 50/50). The CEF portion is something like a fund-of-funds, but presumably they are trading opportunistically to buy CEFs at a discount to fair value. Whether that is worth 1.16% is the real question.
The bond allocation is managed by DoubleLine and presumably a similar strategy as available through other funds such as ADBLX and DBLFX. Even using the 1.16% figure, RNDLX is notably more expensive than the other DoubleLine funds, so you are certainly paying mostly for the CEF side and for the overall portfolio allocation.
International Equity Funds Receive $22.4 B In June, Says Morningstar
RNDLX The ER of 1.6% is not unusual for a fund of funds and the trading strategies employed. You do realize that RNDLX is basically a fund comprised of CEF's (Closed-End Funds) i.e a fund-of-funds. I also don't quite know what to make of M* list of portfolio holdings other than they most likely not referring to a portfolio of approximately 753 individual bonds and 5 stocks.
Their top holding, Pimco Dynamic Credit Income (PCI) shows a portfolio of Bonds - 525 long + 1 short and Other - 100 long + 226 short. How is that accounted for in what M* shows as the portfolio holdings of RNDLX?
Of further interest to me here is that one could own PCI outright and earn a 9.46% distribution or you could own it by paying 1.6% to RiverNorth to own RNDLX shares and collect 5.3% for your money.
Gosh I wish Ed was still around these parts talking CEF's.
Mutual Funds Are Front and Center In Puerto Rico Talks Several of the Mutual Series funds hold the same PR bond (rated CC/Caa/CCC- by Fitch/Moody's/S&P), trading around 72 (and it was issued with OID) - not too bad. CUSIP
74514LE86.
No other PR bonds on a quick scan.
Eventide Healthcare & Life Sciences ETIHX (available in TDAmeritrade retirement accounts for $10K minimum with TF) has an average market cap of $1.69B, as compared with FBIOX's $8.3B, so these funds are clearly operating in different market cap spaces making comparison very difficult. I would suggest looking at XBI (average market cap $2.26B), which has outperformed ETIHX over all time periods since inception while having a much lower ER of 0.35% vs. 1.43% for ETIHX.
Kevin
Mutual Funds Are Front and Center In Puerto Rico Talks According to the N Y Times, 75% of the mutual funds tracked by Morningstar own some Puerto Rico bonds. The article suggests that one of the reasons Puerto Rico was able to amass a debt it could never repay is because mutual funds were engaged in competition to offer investors higher yield.
Makes one wonder if our mutual funds focus on our financial wellbeing, or their profits. I hope my Mutual Series funds don’t own any of the risky debt floating around the market place today, but since they are now owned by Franklin Templeton, they probably do.
[See article: “The Bonds that Broke Puerto Rico,” New York Times, June 30, 20
15. ]
http://www.nytimes.com/2015/07/01/business/dealbook/the-bonds-that-broke-puerto-rico.html?_r=0
RNDLX I do not own it. The breadth of its holdings seems astoundingly spread out. M* reports 753 bonds, 5 stocks. Only 11% of holdings in top 10. "Strategic" is a euphemism for (mostly) HY. My own bond funds cannot lately hold their NAV, either. But you're getting a 5.3% yield, not shabby. My own more risky EM bond fund yields just above that, at 5.87%. I would not dump it yet, just on the basis of YTD performance.
Boy, sure is tempting for a quick grab and run, GDX at 13.6 R.S.I. and related commodity Hi
@beeDividends are always nice. Now for the smart arse side of my investing brain.
If I can hold and keep a
10% return within 6 months maximum, I will forgo the dividend or income side of an investment..........I will call this a fair trade. :)
Catch
Boy, sure is tempting for a quick grab and run, GDX at 13.6 R.S.I. and related commodity From M*: Industry > Basic Materials > Gold
12/26/20
14 52-Week High:
1.06
10/
16/20
14 52-Week Low: 0.95
12/3
1/2004 All-Time High:
1.
14
11/20/2008 All-Time Low: 0.55
RNDLX 1.6 ER for a bond fund is one of the main problems.
Boy, sure is tempting for a quick grab and run, GDX at 13.6 R.S.I. and related commodity @johnNWhich or what emerging market fund is down -20%?
OKAY, I see that you have changed the -20% to a -
10%.....
Per M* the range is from +
14.4% through about a -
10%, with the average YTD of .24%.
M* EM link
Jason Zweig: Let’s Be Honest About Gold: It’s A Pet Rock @hank. Your comment on the tomatoes reminds me of the
1973 film Soylent Green where I think one went for $250. Actually over the years my attempt at growing tomatoes in my back yard is similar. After buying the plants, the best soil, the mulch, plant food, I figure each tomato I would get cost at least $25.00. Growing them in the strong New Mexico sun and summerheat not like growing them in my former east coast home.
Jason Zweig: Let’s Be Honest About Gold: It’s A Pet Rock Careful Skeet.
OJ: A lot of help you are :). Ya know, I stared at those tomatoes for a while - and than passed on them. But to your point - kept thinking about this year's 1% SS "cola" increase or whatever it was. Than things made even less sense.
Of course the experts will point out that food prices are always volatile and that some things, like cell phones and TVs, have been dropping in price keeping inflation low. Still ....seems mighty strange.
