Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Puerto Rico, munis, take 5.4 bln bite out of Franklin fund flows
Reply to @Sven: Thanks. Good read. Oppenheimer screwed up most (again). Franklin's fund took biggest single hit. Some like T Rowe Price relatively unscathed.
Reply to @hank: Oppenheimer, Franklin and others are commonly used by advisors. The more conservative houses such as T. Rowe Price and Vanguard have done their jobs for their shareholders.
Reply to @Sven: That's a cheap shot against Franklin.
The only Franklin fund on this list of Puerto Rico-heavy muni funds is their unique Double Tax-Free Income Fund. (A fund that also serves to prove that there's not always a noload equivalent for a given investment strategy.)
This fund invests in Puerto Rico by design. It must invest in bonds issued by US territories (its holdings must be tax free in all states). Puerto Rico is the elephant in the room - try even finding a bond issued by the US Virgin Islands. Yet even with all of this, Franklin still acted to reduce the fund's holdings in PR bonds from 69% (as of Aug 31st, per semi-annual statement) to 60% (Buzzfeed, Oct 28th).
If the subject is conflict of interest in how funds are managed (not sold), it seems one needs to consider that TROW is a publicly traded company, just like BEN. Vanguard, on the other hand, is unique, and in this respect superior.
(I think this is the first time I've (accurately) used unique in two different contexts in the same writing - making this post unique. And making three uses )
Comments
kiplinger.com/article/investing/T041-C007-S003-puerto-rico-bond-risk-to-muni-funds.html
The only Franklin fund on this list of Puerto Rico-heavy muni funds is their unique Double Tax-Free Income Fund. (A fund that also serves to prove that there's not always a noload equivalent for a given investment strategy.)
This fund invests in Puerto Rico by design. It must invest in bonds issued by US territories (its holdings must be tax free in all states). Puerto Rico is the elephant in the room - try even finding a bond issued by the US Virgin Islands. Yet even with all of this, Franklin still acted to reduce the fund's holdings in PR bonds from 69% (as of Aug 31st, per semi-annual statement) to 60% (Buzzfeed, Oct 28th).
If the subject is conflict of interest in how funds are managed (not sold), it seems one needs to consider that TROW is a publicly traded company, just like BEN. Vanguard, on the other hand, is unique, and in this respect superior.
(I think this is the first time I've (accurately) used unique in two different contexts in the same writing - making this post unique. And making three uses