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TSHIX

edited October 13 in Fund Discussions
Has anyone considered TSHIX as a 30-50% stock allocation fund?
https://finance.yahoo.com/quote/TSHIX?p=TSHIX&.tsrc=fin-srch

Comments

  • M* classifies TIAA-CREF Lifestyle Income Fund as a 15%-30% allocation fund. In the summary prospectus, TIAA benchmarks the fund against M*'s Conservative Target Risk Index, which is a static 20/80 index.
    https://www.tiaa.org/public/investment-performance/investment/profile?ticker=93570885

    It's a fund of funds targeting a 20% allocation to underlying equity funds. Its current portfolio holds 19.86% in equities (per M*).

    Its performance (raw or risk-adjusted) doesn't compare favorably to a target date retirement income fund like VTINX, let alone a 30%-50% fund like VWINX.

    The fact that you're looking at the advisor class of shares rather than the retail class of shares (TSILX) suggests that this is being proposed for (or is already in) a managed portfolio. For that purpose, it's a serviceable fund, but nothing I'd get excited about.
  • Check out WBALX for a solid 30%- 50% alloc fund.
  • The fund is Trans American Multi Asset TSHIX
  • Nothing like transposing characters. My error.

    Looks like a pretty good fund. The only thing that jumps out on a cursory look is that it is very deep into junk bonds - more than half are B rated, another nearly 10% below B.
  • Lost 18.14% in 1Q 2020, vs 10.94% for FMSDX .
  • edited October 13
    carew388 said:

    Lost 18.14% in 1Q 2020, vs 10.94% for FMSDX .

    WBALX lost only -8% in 1Q 2020.

    But....FMSDX has a 3 year annual return of close to +17%, versus TSHIX at 12.5% and WBALX at 10.6%.
  • Yes-for the risk-tolerant, FMSDX crushes the other two.
  • Thank you. FMSDX looks like one of the best choices for this category.
  • Yes-and you can sell amounts of Fidelity funds under 10k within 60 days without incurring early redemption transaction fees.
  • There are never any early redemption fees on Fidelity funds.

    Fidelity has two different sets of policies. One on non-Fidelity mutual fund transactions and one on Fidelity fund transactions.

    - Make too many (two) short term (within 30 days) round trip (buy, then sell) transactions on a single Fidelity fund in a single account within a 90 day span, and you may begin triggering restrictions on trading Fidelity funds.
    http://personal.fidelity.com/products/trading/Trading_Platforms_Tools/excessive_trading_policies.shtml

    This is Fidelity's excessive trading policy.

    There are so many exceptions that if this is something you really want to do, it shouldn't be a problem. It doesn't apply to MMFs or reinvested divs. It doesn't apply to trades totaling less than $10K per day, as noted above. (The limit had been $1K, but was raised to $10K a year ago.)

    Or you can use the same automatic investment mechanism that people use to buy TF funds for a $5 fee. If you use this to buy a Fidelity fund, then regardless of the amount, the transaction doesn't count as part of a round trip.

    - Sell shares of a non-Fidelity NTF fund within 60 days of purchase and you will incur a short term trading (not early redemption) fee imposed by the brokerage. (The funds themselves may impose an additional early redemption fee; Fidelity funds do not.)
    https://www.fidelity.com/mutual-funds/all-mutual-funds/fees

    Unlike the excessive trading policy, which applies to Fidelity funds and is focused on the number of trades in a fund and not the shares, short term trading fees are focused on which shares you sell quickly.

    Shares are treated FIFO, so this is also a relatively easy fee to avoid. If you purchase 100 shares in May, another 100 in July, and sell 100 in August, you will be fine. Even if you specifically identify the July shares as the ones you're selling.

  • edited October 14
    JD_co said:

    Check out WBALX for a solid 30%- 50% alloc fund.


    I did quickly, and while the equity part of WBALX may be "solid", I question the performance of the bond portion in the current rising interest rate environment. It makes up 42% of the fund's portfolio, and of that 67% consists of short term US Treasuries and AAA bonds. It's the only balanced fund I have come across where the SEC dividend yield is negative, according to M*.

    The majority of the fund's bonds may actually be a detractor from its future performance, unless management makes a change. Holding cash instead may actually be a better choice in the current environment.

    My other question is why a "solid" fund like WBALX has accumulated only $223 million in assets over the past 18 years? What am I missing?

    Fred
  • fred495 said:

    JD_co said:

    Check out WBALX for a solid 30%- 50% alloc fund.


    I did quickly, and while the equity part of WBALX may be "solid", I question the performance of the bond portion in the current rising interest rate environment. It makes up 42% of the fund's portfolio, and of that 67% consists of short term US Treasuries and AAA bonds. It's the only balanced fund I have come across where the SEC dividend yield is negative, according to M*.

    The majority of the fund's bonds may actually be a detractor from its future performance, unless management makes a change. Holding cash instead may actually be a better choice in the current environment.

    My other question is why a "solid" fund like WBALX has accumulated only $223 million in assets over the past 18 years? What am I missing?

    Fred
    While a negative yield is less than ideal, their short-term bond holdings have probably held up better than many other bond sleeves in recent quarters. That type of allocation is probably why this fund has less volatility. Works for some, not for others.
  • I own WBALX and I am happy with its bond holdings. when the market crashes which it will, I think WBALX will hold up well. I consider it a sleep well at nite fund.
  • carew388 said:

    Yes-and you can sell amounts of Fidelity funds under 10k within 60 days without incurring early redemption transaction fees.

    Which brokerage are you referring for the above. At Fidelity, it’s own funds have a 30 day holding requirement, a violation of which is taken seriously by Fidelity but never a redemption fees. At other brokerages I am aware of Fidelity funds are TF funds. Any insight?

  • edited October 22
    With funds holding excessive %age of cash equivalents, we are paying them to hold cash which is far worse than neighborhood bank branches paying near zero interest on savings account.
  • ISTR selling Fidelity funds before the 30 day limit in my Fidelity brokerage account. These amounts were $2,000 or less, so maybe the small size of the transaction didn't get flagged by Fidelity.
  • edited October 22
    @msf,

    "[Y]ou can use the same automatic investment mechanism that people use to buy TF funds for a $5 fee. If you use this to buy a Fidelity fund, then regardless of the amount, the transaction doesn't count as part of a round trip."

    Since Fidelity funds are NTF, does Fidelity charge the $5 fees to buy using the auto invest feature? I am assuming NO, but thought I should ask.

    "Orders placed via Fidelity Automatic Investments or Automatic Withdrawals features are exempt from roundtrip violations." - from Fidelity website.

    Does the following sell order result in a roundtrip violation?

    I buy $1,000 of FXAIX on Feb 1. On Feb 2, I place an auto invest request to buy on Feb 4 of $100K of FXAIX (assume quarterly auto invest). On Feb 15, I learn that a pandemic is imminent and I want to reduce my equity exposure and sell all the FXAIX shares bought on Feb 4.

    Thanks.
  • For clarity: I mentioned the $5 automatic investment feature for transaction fee funds because some people are familiar with the tool in that context.

    When used to purchase Fidelity funds (which have no TF) it exempts the purchase from the round trip restriction. My understanding is that the sequence of trades you described would be counted as one round trip (manual buy on Feb 1, sale on Feb 15). The sale of shares purchased on Feb 4 would not count as part of a round trip because they were purchased "automatically".

    One round trip within a 90 day period is okay with Fidelity. Thus I believe you would not run afoul of Fidelity's excessive trading rules this way.
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