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@dtconroe. I will be curious what your final decision is. I would also like to retract my recommendations. Those two funds - SCFZX and HOSIX - were stellar during the most recent period of higher rates but their yields have been dropping like a rock the past year. They were more suited for the past higher rate environment as was anything CLO related, DHEAX has more of a history but returned over 4% but once during its first six years of existence of mostly lower rates. Same with SEMIX with an even longer history but didn’t come close to 4% in the lower rate environment.
I believe your goal is 4% to 6%. The best advice I have seen in this thread was from @PRESSmUP that if you want to achieve 4% to 6% you have to venture out on the risk scale. Especially if the much lower rate scenario comes to fruition. Many would tell you to venture into emerging market debt which has shined the past many years and their yields haven’t been dropping drastically - think EIDOX and AGEYX which I hold. But definitely not for those who are risk averse and definitely not for you. To be honest 4% to 6% with little to no risk in a much lower rate environment is pie in the sky thinking. Best of luck with whatever you decide.
Junkster, thanks for your participation and suggestions on this thread. Realistically, my goal is for 4% returns since I can't get 4% CDs any longer--I am getting 4.31% with SNAXX money market currently, and I will continue using it as needed, but am not optimistic that MMs can stay above 4% much longer. Many of my current CDs mature in December, so I still have a couple of months to sort through my options.
APDPX has been on my best list of funds for months, but not for DT. In April it was down 1.8%. In 2024 HOSIX goes up extremely nicely from left to right, while APDPX goes down Since 01/2022: HOSIX made 32+% APDPX 35+% But HOSIX SD is at 1.3% vs 2.6% HOSIX has the best Sharpe > 3 of all the funds at Fidelity.
The 30 day yield of HOSIX=6.6...DHEAX=5.5%...SEMIX=6.2...SCFZX=5.4%. We are not in a low-rate environment. 2025-6 would still be higher than years ago and if rates go lower, these funds would probably make 4.5% My cloudy crystal ball says that the first 3 will make 5-6% in 2025...and 4-6% in 2026. See YTD chart (https://schrts.co/gGdZWGIt)
The idea is to get at least 4.5-5% in 2026 at the lowest SD possible. But Schwab MMs still pay over 4%. Why would DT take a risk for another 1%? That's not for me to answer.
HOSIX is a very attractive fund, and CDs are below 4% and trending lower. I don't see how Schwab MMs can continue to stay above 4% much longer. With inflation starting to rise again, it is far from certain that the Feds will aggressively lower interest rates. I will continue to evaluate my options over the next couple of months, until my CDs start maturing. It is unlikely that funds like HOSIX will be able to sustain their TRs of 2022-2024, but they still may be the best options available to make at least 4% in 2026.
APDPX and its more risky emerging markets counterpart, APDOX are good funds, but those who trade funds frequently may not like the 2% redemption fee for shares redeemed within 90 days or less.
APDPX and its more risky emerging markets counterpart, APDOX are good funds, but those who trade funds frequently may not like the 2% redemption fee for shares redeemed within 90 days or less.
I know the Artisan High Yield fund has such a fee but can’t find it on the funds above. I checked the prospectus and it specifically says no redemption fees as does Schwab and Fidelity. I ask because I have a small holding in APDPX. I am close to 90 days but don’t want any 2% surprise if the world comes to the end in the next couple weeks. I checked before buying but if you have more pertinent info please advise,
at schwab, i went to sell some AGEPX and got a message that i had to call to sell it since it had a redemption fee (in addition to any usual short-term trading fee, i gather). i forgot to call and am okay that i didn't.
at schwab, i went to sell some AGEPX and got a message that i had to call to sell it since it had a redemption fee (in addition to any usual short-term trading fee, i gather). i forgot to call and am okay that i didn't.
That explains it. You always get that message if you try to sell a partial dollar amount on a no transaction fee fund at Schwab such as AGEPX. Instead you have to sell a share amount ( equal to the dollar amount you want to sell) and you won’t get that message. On a transaction fee fund such ad APDPX when you go to sell a dollar amount you don’t get that message. There is no 2% short term redemption fees on these funds imposed by Artisian just the short term 90 day trading fee or commission imposed by Schwab for no transaction fee funds. Clear as mud right.
I am glad if there is no 2% fee, but I am looking at the prospectus of Artisan funds, specifically at page 42 on Global Unconstrained Fund. It states: Redemption Fee (as a percentage of the amount redeemed or exchanged within 90 days or less) is 2.00% for all share classes of the fund. This is not mentioned in the Summary Prospectus. Maybe I misinterpret it, or Schwab and Fidelity do not enforce it for certain accounts.
If you check the supplement dated February 28, 2025 page two it says effective March 14 all 2% redemption fees are removed on the 2 funds in question above. Time for another posting hiatus.
APDPX has high cash portfolio (30%+), but also high risk African debt, Peruvian and Uzbekistani debt in local currency. One wrong word from a country and currency drops 2%. It has Iraqi debt, probably in USD, with oil as collateral?
Seems like they know what they are doing, but they don’t have tenacity of Elliott Management, founded by billionaire Paul Singer, who refused to take a deal and hired army of lawyers, lobbyists, and possibly former intelligence agents to force Argentina to pay full debt payment. Elliot made over a billion on that venture. I don’t think the good folks at Artisan have that kind of drive - they would, like me, fold like a cheap suit.
Of course, HOSIX will not repeat last year performance.
I traded APDPX less than 90 days and didn't pay the 2% fee at Schwab.
Most of these funds have $49.95 TF. Do you have to pay or do you have special tier account?
At Schwab, I believe the $49.95 is a redemption fee for NTF funds, that are sold in the first 90 days after purchase. At Schwab, both HOSIX and APDPX are TF funds that charge up to $74.95 for each purchase, but do not have redemption fees when you sell them, even if it is the next day after purchase. Some account holders, including me, were successful in negotiating a reduced TF charge with Schwab, when they opened their Schwab accounts. As a result, I prefer buying the TF funds, when available, and avoiding the messiness of redemption fee charges.
In researching multisector HOSIX, I noticed that fund company recently opened a new fund (HOTIX), in the nontraditional bond oef category. Without performance history, there is a risk, but there are occasions when nontraditional funds, from quality companies, can use some additional investing tools to manage risk. Anyone interested in HOTIX?
The Holbrook Total Return Fund seeks to deploy capital opportunistically across government securities, corporate bonds, and securitized credit to produce income and total return. The Fund will have a longer target duration than the other Holbrook funds, generally ranging from 3 years to 7 years. The Fund can also investment across capital structures opportunistically, but with a limit to high yield exposure.
at schwab, i went to sell some AGEPX and got a message that i had to call to sell it since it had a redemption fee (in addition to any usual short-term trading fee, i gather). i forgot to call and am okay that i didn't.
That explains it. You always get that message if you try to sell a partial dollar amount on a no transaction fee fund at Schwab such as AGEPX. Instead you have to sell a share amount ( equal to the dollar amount you want to sell) and you won’t get that message. On a transaction fee fund such ad APDPX when you go to sell a dollar amount you don’t get that message. There is no 2% short term redemption fees on these funds imposed by Artisian just the short term 90 day trading fee or commission imposed by Schwab for no transaction fee funds. Clear as mud right.
thank you, junkster. very very helpful, as per usual.
Of course, HOSIX will not repeat last year performance.
I traded APDPX less than 90 days and didn't pay the 2% fee at Schwab.
Most of these funds have $49.95 TF. Do you have to pay or do you have special tier account?
Do you have to pay? no. Do you have a special tier account? yes
I posted several times before about how you can pay just $10. I have a few shares in all the funds I like. First day, I buy $15 in HOSIX. There is no commission because it's too small. On the same night, after 9 PM but before midnight, I enroll in (under the tab trade click on automated investing). Find HOSIX and click enroll = set up a buy for the next day. I use frequency=monthly. The commission is just $10. The max to buy is $999,999. You must have the cash, not MM, in the account to see the buy order the next morning around 8 AM. Don't forget to unenroll.
BTW, I brought HOSIX into Schwab more than 2 years ago. I contacted the mutual fund directly and talked with the manager and his staff, and I told them I wanted to invest at least $1 million, but I can't at Schwab. They worked with me and Schwab, and I bought it at that time. This year I no longer held HOSIX.
Comments
In April it was down 1.8%. In 2024 HOSIX goes up extremely nicely from left to right, while APDPX goes down
Since 01/2022: HOSIX made 32+% APDPX 35+%
But HOSIX SD is at 1.3% vs 2.6%
HOSIX has the best Sharpe > 3 of all the funds at Fidelity.
The 30 day yield of HOSIX=6.6...DHEAX=5.5%...SEMIX=6.2...SCFZX=5.4%.
We are not in a low-rate environment. 2025-6 would still be higher than years ago and if rates go lower, these funds would probably make 4.5%
My cloudy crystal ball says that the first 3 will make 5-6% in 2025...and 4-6% in 2026. See YTD chart (https://schrts.co/gGdZWGIt)
The idea is to get at least 4.5-5% in 2026 at the lowest SD possible.
But Schwab MMs still pay over 4%. Why would DT take a risk for another 1%? That's not for me to answer.
The future is unknown.
If you want to beat MM by a bit, go for RPHIX; see YTD (https://schrts.co/pmVkkFJw)
In the last 5 years, max loss for RPHIX was about -0.3%.
See a 3 year chart (https://schrts.co/VzvsMKJB).
Disclaimer: I don't currently own any of the above.
https://artisan.onlineprospectus.net/Artisan/s000075102/index.php?open=globalunconstrained!5fsum.pdf&scr=mob2VXQKOIQ7D
I also hold ARTZX and sold a portion off recently (dumb me) and didn’t get hit with a redemption fee
I traded APDPX less than 90 days and didn't pay the 2% fee at Schwab.
Seems like they know what they are doing, but they don’t have tenacity of Elliott Management, founded by billionaire Paul Singer, who refused to take a deal and hired army of lawyers, lobbyists, and possibly former intelligence agents to force Argentina to pay full debt payment. Elliot made over a billion on that venture. I don’t think the good folks at Artisan have that kind of drive - they would, like me, fold like a cheap suit.
The Holbrook Total Return Fund seeks to deploy capital opportunistically across government securities, corporate bonds, and securitized credit to produce income and total return. The Fund will have a longer target duration than the other Holbrook funds, generally ranging from 3 years to 7 years. The Fund can also investment across capital structures opportunistically, but with a limit to high yield exposure.
Do you have a special tier account? yes
I posted several times before about how you can pay just $10.
I have a few shares in all the funds I like.
First day, I buy $15 in HOSIX. There is no commission because it's too small.
On the same night, after 9 PM but before midnight, I enroll in (under the tab trade click on automated investing). Find HOSIX and click enroll = set up a buy for the next day. I use frequency=monthly. The commission is just $10. The max to buy is $999,999.
You must have the cash, not MM, in the account to see the buy order the next morning around 8 AM.
Don't forget to unenroll.
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HOTIX=NO
The 3-month chart shows that HOTIX is a lot more volatile than HOSIX and HOBIX.
https://www.morningstar.com/funds/xnas/hotix/chart
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BTW, I brought HOSIX into Schwab more than 2 years ago.
I contacted the mutual fund directly and talked with the manager and his staff, and I told them I wanted to invest at least $1 million, but I can't at Schwab.
They worked with me and Schwab, and I bought it at that time.
This year I no longer held HOSIX.