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a BOND fund? MAINX

edited July 2019 in Fund Discussions
I don't own it, but track it. Up ytd by +9.18%. That's totally, ridiculously amazing. Teresa Kong at the helm. MAINX. Will this fund beat its inception-year performance? (+13.62%.) Is it not also limited to Asian bonds? The Matthews house only does Asia.

Comments

  • Hi @Crash
    Yes a good fund. I track it too...can you please remind me what international bond fund you are invested in. I believe it is with T. Rowe. Thx
  • edited July 2019
    It has been an amazing year for bonds. So much so that MAINX lags iin its category (emerging markets bond) and in the 75th percentile. One of the best in that category over the past three years has been Vanguard’s VEMBX and it is up over 14% YTD.
  • Thanks for sharing @Junkster. As I recall IOFIX is your major bond fund position currently. Are you also invested in an international bond fund? I'm trying to decide whether to establish a holding in international.
  • edited July 2019
    I had been in VEMBX earlier in the year. But I also held PDIIX a multisector sector bond fund with a large exposure to emerging markets bonds ( as well as junk). I eventually sold VEMBX because I didn’t want the dual exposure to emerging markets. In retrospect should have kept it. This is the year everyone is a bond genius because of their outsized returns. You are correct in that presently my largest exposure by far is with IOFIX. That is because I am in a somewhat defensive mode now. I hold small positions in BDKAX, PDIIX, and PFORX the later a world bond fund. I am concerned about junk bonds in that they led the S&P up this year but then stalled the past couple weeks as the S&P surged ahead. Never listen to me though. Other than IOFIX, my positions and opinions can change quickly based on market action. I may sell two of my holdings today. I guess that is why I get so many warning and ban notices from some fund companies because of my trading activities. If anyone missed the first half rally in bonds I would be concerned about suddenly chasing performance now.
  • ".... If anyone missed the first half rally in bonds I would be concerned about suddenly chasing performance now."

    That makes perfect sense.
    @MikeW my global bond fund is PRSNX , yes, it's with TRP. Up +7.05% ytd. Can't complain. But that puts it into the middle of the pack, at 45th percentile. Morningstar claims to have improved their website. That's hogwash. Four mouse-clicks now to get what I used to find with just one. Anyhow, my numbers here are from Morningstar. And Morningstar has lately changed the category where PRSNX belongs. Now, they've lumped it with World Bonds, but "US dollar hedged." Last month's dividend was down quite a bit...

    My other bond fund is PTIAX. I'm quite happy there, too. Ytd, up +5.47%. June's monthly dividend jumped to 9 cents/share. PRSNX is 49.77% of my total. PTIAX is growing a tiny bit every month, with small automatic deposits, and I'm still reinvesting everything. Today, it represents 4.72% of my portfolio--- if you include my wife's 403b---still not quite $10,000.00 in there, yet.
  • edited July 2019
    Junkster said:

    ”Other than IOFIX, my positions and opinions can change quickly based on market action. I may sell two of my holdings today. I guess that is why I get so many warning and ban notices from some fund companies because of my trading activities.”

    Love it! Thanks for sharing @Junkster.

    You remind us that bond investing can resemble anything from driving a Studebaker ...

    image

    To driving a Ferrari!
    image

    All depends.
  • Thanks @Crash and @Junkster for sharing your current holdings. Junkster it sounds like IOFIX is a long term holding for you and not one that you trade in and out of. I'm about 10 years away from retirement so am 70% equities and about 30% in money markets. I've been looking for an entry point into bonds all year but have shied away because I keep expecting rates to rise... have been wrong to date. Certainly hard to establish a position now with the big run up in bonds.
  • I'm about 10 years away from retirement so am 70% equities and about 30% in money markets.
    @MIkeW, you may want to consider a multi-sector bond fund such as PIMIX to start. In my humble opinion money market funds pay very little and it should be used to meet short term goals. For longer term diversification from equity, bonds are logical choice.

    I started with Vanguard Total Bond index years ago in my 401(K). Over time I learned to use actively managed bonds. Bill Gross was very good but that was awhile back and there are more choices today.
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