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RPHIX vs US Treasuries vs CDs

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  • edited November 2022
    RPHIX is a unique bond fund. I don't think you can find another one for 2022, with that kind of low SD + performance. The fund is closed to new investors at Fidelity and Schwab.
  • FD: "RPHIX is a unique bond fund. I don't think you can find another one for 2022, with that kind of low SD + performance. The fund is closed to new investors at Fidelity and Schwab."

    Yep, for years, this bond oef was the best alternative, to CDs and MMFs that paid nothing. I often used it as my safe harbor to get through rough bond oef market periods. I still hold a few shares in it, just in case it did close, so I could use it in the future, if I wanted to. Maybe I will use it again at some point in the future, but for now, it is not as compelling of an alternative, to MMFs and short term CDs, as it once was. It is always good to have "options" when you need them!
  • It is impossible to extrapolate completely as you said, but given that interest rates went from 3% at the end of September when this last shareholder letter came out to 4% on November 2, it is probable that the yield on this fund will be increasing in the short-term as that dry powder debt matures and new higher yielding debt is purchased.

    It appears that the 30-day SEC yield here actually dropped in the past month, from 3.68% to 3.27% (according to the Schwab website). Last month's distribution was lower than those in the preceding three months. Don't ask me what all this signifies, but such numbers, along with a high OER hurdle to clear, makes safe, higher yielding alternatives look appealing to me.
  • November was a good month for bonds in a while, so the 30-day SEC yields have come down. Furious rate rise has also slowed.
  • edited December 2022
    Indeed, one month return is a high—for this kind of fund—0.6% for retail shares, 0.7% for institutional ones. So clearly bond prices rallied. If it was 0.6% every month, you’d get a 7%+ total return over the next 12 months. That’s improbable, but still would expect higher than usual here.
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