You laid out your mutual fund portfolio and stated why you were comfortable managing and holding them. You seem like an astute investor with a fairly firm grip on the wheel so this isn't about me questioning your methods or your sanity.
However, I took one of your categories, Domestic Hybrid Growth & Income, and plotted their 10-year performance against each other on a M* graph. I left out FRINX because it's a real estate fund but the others are all listed as either LB or LV with moderate allocations.
What I saw was them all performing in a nearly identical fashion which was as expected by me. What I didn't expect to see is that NONE of them beat the M* moderate allocation target over that time period. So I really, really have to wonder why anyone would choose to hold these particular funds. To my way of thinking all the shareholder is doing is lining the pockets of their broker-advisor-mutual fund Co. at their own expense. If nothing else I would choose the one or two that come closest to matching the M* target and dump the others.
You've mentioned that you can only purchase certain funds within certain accounts but geez, I really think that I would be looking for a different way, different broker, different something.
Can you shed some light?
From another angle, in managing this portfolio do you consider this whole collection as one, single portfolio or is each account a portfolio onto it's own?
Edited to add: Just so you know, 10 years ago I was on this same path albeit with only half as many funds as you own when I started to dial it back. For me, I figured if I couldn't logically explain why I owned an investment in 50 words or less then I probably could get along without it. Different strokes for different folks.
Comments
Thank you for your inquiry and since I feel it is a sincere request I’ll respond on a good number of the funds that are held in the Growth & Income, Hybrid area.
AZNAX, I own this fund because it kicks off a good distribution of 8.75 cents per month per share. At it current nav of $12.17 this equates to an annual distribution factor of 8.67%. In review of the Morningstar report it has been a five year leader and place in the top 2% of its category. What’s there to not like about this?
DDIAX, I have own this fund for a good number of years. In checking its Morningstar report I am finding the it has been in the top 10%, or better, of its category for the past one, three and five years. What’s there not to like about that?
AMECX, this is a fund that my family has own for many years … actually, I received it as part of my inheritance from my late parents. But, lets look at its performance … According to Morningstar it has been in the top 20%, or better, in its category for the past one, three and five years. What’s there not to like about this? I score it a keeper.
JPVAX, this is a more recent purchase of mine and even though it is a member of Janus Family it is sub advised by Perkins. Perkins is more conservative in their investment approach. It is my belief that it will be a good mid stream performer and perform well in down markets. With this, it has been in the top third of its category for the past one year. Hey, it’s a new fund with limited history … I am scoring it a keeper.
LABFX, this is a fund that I have owned for about five years now and let’s look at how it has done. According to Morningstar it was a good performer at the one year mark inside the top 10% of category and it slipped to the middle of the pack on its three year performance number but places in the top 20% of category on its five year number. It now has a walking allocation so to speak as the investment policy committee is now able to set its allocation as to where they are seeing value. This has only been so within the past year or so as before it was more static before. I am scoring it a keeper.
Mark, I could go own with this but I am not certain that it would serve any great purpose.
Thank you for your inquiry. I hope my comments have some value to you.
Have a great day …
Skeeter
You noted: The following yield is indicated. I apparently had too much food at lunchtime; but I am trying to tie the 8.67% annual distribution in with the 3.51% yield. Is the 8.67% number combined with or into capital gains distributions or? Thank you for your time and efforts,
Regards,
Catch
The distribution is different form the yield which is computed form interest and dividend income only as the distribution factor considers all where it be interest, dividends, capital gains or return of principal. I have linked its distributions as noted by Yahoo Finance ... notice they average .0875 per month.
http://finance.yahoo.com/q/hp?s=AZNAX&a=02&b=1&c=2007&d=00&e=27&f=2013&g=v
In addition, you can find more informattion about this fund through the below link. Just scroll down to the distribution yield area. For 2012 it paid out $1.05
http://www.allianzinvestors.com/Products/pages/244.aspx?ShareClassCode=A
Hope this helps.
Skeeter
You didn't really provide an answer to why you would hold these funds even though they could not beat the M* Target bogey. I understand the sentimental value of some of your holdings. Just flummoxed I guess.
As your father taught you I hope you've been mentoring a trainee along the way to take over eventually. Can't say I envy them.