Barron’s Funds Quarterly (2023/Q3–October 9, 2023)
https://www.barrons.com/topics/mutual-funds-quarterly(Performance data quoted in this Supplement are for 2023/Q3 and YTD to 9/30/23)
Pg L2: SMALL-CAPs (SCs) have attractive relative valuations and their time may finally come; SC-value is especially attractive (some energy, financials, regional banks). But recession poses a high danger for SCs; they may be fine with SOFT LANDING. Mentioned are:
SC-Value AVUV, QRSVX, RYSEX
SC-Blend DFAS,FDSCX, FOSCX, RPMAX
SC-Growth FTXNX, NEAGX
SC-Indexed IWM, IWO, IWN (poor Russell indexes; not selective); SPSM (better S&P index))
SC-Foreign DRIOX, FISMX, MOWNX
All-Cap FLPSX (heavy in SC, MC, foreign)
(By
@LewisBraham at MFO)
Pg L6: BEST MONEY MARKET Funds (MMFs). M-Mkt funds have attracted huge inflows. They offer high rates, safety and liquidity. MMF ERs matter the most. (The 2014/16 reforms introduced gates/redemption fees and 3 types of MMFs – Government, Prime-Retail, Prime-Institutional). The new 2023 reforms have removed the gates (i.e. the problematic redemption suspensions) but will allow redemption/liquidity fees when there are heavy daily outflows (5%+ of AUM). So, basically, the distinction between the Government and Prime-Retail MMFs will become less significant for large MMFs. (I don’t recall Barron’s doing the Best MMFs before)
Government MMFs AEAXX, AMAXX, FOBXX, INAXX, PCEXX
Prime-Retail FMEXX, GMGXX, IPPXX, TSCXX, VMRXX
Treasury MMFs BITXX, FZFXX, GABXX, PRTXX, UATXX
Muni MMFs FMOXX, GMHXX, MOTXX, SWTXX, VMSXX
Fund news from elsewhere in Barron’s (Parts 1 & 2).
STREETWISE. Hurt by rising rates, REITs are now attractive. Their yields and FFOs are good; they trade at discounts from book values. REITs are better capitalized than private property owners and should benefit from the CRE weakness/consolidation; some bigger REITs may buy smaller REITs. There are growth/”hare” REITs – hotels (HST, RHP), industrial (CDP, FR), drug research facilities, apartments (ARE, CPT, UDR), senior housing (LTC, SBRA); and income/”tortoise” REITs – casinos (GLPI, VICI), nursing centers, ground leases. What about office REITs? Forget them! Headwinds include higher rates, tighter credit conditions, recession. (Real-estate has been a GICS sector since 2016; mREITs have remained with the financials.)
INCOME. Attractive PREFERREDs include the ETFs EPEI, PFF; the CEFs FFC, JPC; and individual preferreds from C, GS, WFC, etc (both $25 & $1,000). Also look at JUNIOR CORPORATE bonds from ENB and APOS/APO.
Pg L29: In 2023/Q3 (SP500 -3.27%): Among general equity funds, the best was SC-value -1.79%, and the worst was SC-growth -6.32%; ALL general equity categories were NEGATIVE. Among other equity funds, the best was natural resources +11.99%, and the worst were precious metals -9.32%, utilities -8.83% (strange mix). Among fixed-income funds, domestic long-term FI -0.98%, world income -1.86%; ALL FI categories were NEGATIVE (FI isn’t very refined in Lipper mutual fund categories listed in Barron’s).
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