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An Income Fund’s Flexible Strategy Pays Dividends: (TIBAX)

FYI: he Thornburg Investment Income Builder fund was launched in late 2002 with a straightforward premise. “We believed that we were going to have an attractive dividend and grow it over time,” says Brian McMahon, one of the fund’s three co-managers, who took part in the launch.

The $14 billion fund (ticker: TIBAX) has been able to stick to that goal by adjusting its allocation to stocks and bonds, in line with the dramatically shifting market conditions over the past 16 years. The fund has grown its dividend at an annual clip of about 4.5%, and added capital appreciation of 3.5% per annum on top of that. The portfolio’s recent trailing 12-month yield was 4.4%.
Regards,
Ted
https://www.barrons.com/articles/an-income-funds-flexible-strategy-pays-dividends-51545390000?refsec=income-investing

M* Snapshot TIBAX:
https://www.morningstar.com/funds/XNAS/TIBAX/quote.html

Lipper Snapshot TIBAX:
https://www.marketwatch.com/investing/fund/tibax

TIBAX Ranks #11 In The (WA) Fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/world-allocation/thornburg-investment-income-builder-fund/tibax

Comments

  • edited December 2018
    @Ted: Thanks again for making post about yet another fund (TIBAX) that Old_Skeet just happens to own. I enjoy reading these featured blurbs that you make post of. I have owned this fund for about fifteen years and I have found that it has achieved it's goal to provide a steady stream of increasing income along with some growth of principal through the years since I have owned it. I also like looking through its semi and annual fund reports as they show how the fund's positioning changes, by the quarter, over the past four quarters.

    I hold this fund in my global hybrid sleeve which is found in the growth & income area of my portfolio. The two other fund members within this sleeve are CAIBX & TEQIX.

    It is funds like these that help me stay the course through the ups and downs of market cycles. Should these funds become cheap enough in the current market swoon I'll be a buyer of their shares.

    I like to think that my portfolio is aligned with an income and growth asset allocation of 20% cash, 40% fixed income and 40% equity. For me, this is an all weather asset allocation. I have enough cash to substain myself if the swoon continues and to buy additional shares if and when I feel good opportunity avails. Plus, by staying invested I continue to receive a good income stream and when the market turns upward, there again, I have enoungh equity assets to realize the benefit of the stock market's upward move. I'm strongly thinking of opening an equity spiff (special investment) position soon through a position cost average approach.

    In addition, investing is somewhat like farming ... some years are just better than others. In both, you have to plant or invest before you can make harvest.

    I wish all ... "Good Investing."

    Old_Skeet
  • @ Old_Skeet: Thanks for stopping by.
    Derf
  • edited December 2018
    I look at the headline for this thread and then look at its results. -6.43 YTD and a paltry 3.40% annualized the past 5 years. No thanks! But so as not to sound contentious, I fully understand we all play this game from different comfort levels and varied goals. Another thing I have noticed are those who have pensions in retirement see things through an entirely different lens than those of us without a pension.
  • edited December 2018
    Junkster said:

    Another thing I have noticed are those who have pensions in retirement see things through an entirely different lens than those of us without a pension.

    Exactly.
  • Junkster,

    Thanks for your post. Hopefully there will be many more.

    Merry Christmas,

    Mona
  • Junkster said:

    Another thing I have noticed are those who have pensions in retirement see things through an entirely different lens than those of us without a pension.

    You're probably right, but it's something that seems so illogical.

    These days, many pensions offer a choice of lump sum or monthly checks. So if a pensioner chooses, he or she can wind up in the same situation as someone who has saved outside of a pension - with a pile of assets to live off of.

    Conversely, someone starting with a lump sum can exchange that for a lifetime stream of monthly checks by exchanging it for a single premium immediate annuity.

    Assets are neither created nor destroyed, but merely changed in form:-)

    Regarding TIBAX specifically - one can purchase the cheaper share class TIBIX with a low minimum at Fidelity. (While there's a TF to buy, there's no fee to sell; in retirement presumably one is decumulating assets.)
  • edited December 2018
    @msf The comment @Junkster made fits my situation well. I receive social security and have a modest but dependable inflation adjusted pension. I also receive somewhat substantial investment income (3.5% of beginning principal balance gets withdrawn each year). My three legged stool can probably remain stable after suffering significantly more investment loss than his two legged stool could. After a "bad" investment year, travelling and other frills may decline for one or perhaps a few years. But, day to day life is not impacted......
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