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cpa-why-a-down-market-is-a-great-time-for-roth-conversionSay you own 10 shares of an ETF, each worth $100, in your traditional IRA. If you convert it to a Roth, you’d owe taxes on the dollar value of the shares: $1,000. But if your portfolio declined by 20%, you could move those same 10 shares over and pay taxes on $800.
Once your stocks are converted, they’ll ideally continue to grow tax-free in your Roth account until you’re ready to withdraw the money in retirement.
“There’s no question if you’re paying for something and it costs less, that’s good,” says Slott. “But you don’t really know when the market is really down. It’s hard to time the market for a Roth conversion.”
As Slott points out, the market could rebound or drop further from current levels, so you’ll never know if you’re getting the best possible deal.
That’s why, if you’re interested in converting, he suggests scheduling a series of small conversions between now and 2026, when the lower tax rates set forth in the Tax Cuts and Jobs Act are set to expire. These tax cuts will continue through 2028
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Excerpts from the M* PRMTX report (12/19/2025) are below.
"Shear has introduced several changes since taking over, reshaping the portfolio's sector, style,
and geographic profile. Historically, the strategy leaned more growth-oriented than a typical
communications fund, in part because of its inclusion of tech stocks."
"He's trimmed technology holdings in favor of entertainment names, for example, increasing position sizes
in companies such as Spotify and Nintendo. Additionally, following the October 2024 shift to the MSCI World
IMI Communication Services 10/40 Index, Shear has expanded the portfolio's international exposure."
"From the start of his tenure through the end of November 2025—just an eight-month period—
the fund severely lagged both its benchmark and the typical communications Morningstar Category peer."
"Most of this owes to poor stock selection, compounded by losses from several short-term holdings
that were quickly entered and exited."
The "Process" and "People" M* Pillars were rated average and the fund received a Bronze Medalist Rating.
+1 @Observant1 / Thanks for the relevant excerpts.
I will keep this fund on short lease as it appears the new manager is making many decisions he will have to own.
I can't be the first to ask about its recent under performance... annual report should add more information regarding these changes.
Manager risk is inherent to managed funds.
Thanks all. Roth executed.
Next I looked at the (most recent) June 2025 Semi-Annual Report for PRMTX and it was devoid of commentary from what I could see - just some pretty cut and dry reporting.
So I went back to the (older) December 2024 Annual Report and did somewhat better. Here's the most enlightening portion of the commentary I located in the (December 2024) PRMTX annual Report:
"What drove fund performance during the past 12 months?
U.S. equities posted strong returns, lifted by by favorable economic data and corporate earnings reports alongside easing inflationary pressures and interest rate reductions by the Federal Reserve. The results of the presidential election ended a lengthy period of uncertainty, further boosting stocks into year end. Large-cap and growth stocks performed best with notable strength from technology leaders at the forefront of artificial intelligence innovation. Streaming video service provider Netflix and semiconductor company NVIDIA were top absolute contributors for the fund in 2024. Netflix posted record subscriber growth, capitalizing on the competitive retrenchment of legacy media peers faced with over-levered balance sheets and deteriorating pay TV cash flows. Shares of NVIDIA advanced on strong graphics processing unit demand as large-cap technology platforms accelerated their investments behind AI model development. Advances in frontier model capabilities coupled with progress on AI monetization intensified the arms race unfolding at the infrastructure layer, benefiting NVIDIA as the leader in AI compute and networking solutions. Telecom services holdings in Comcast and American Tower detracted on an absolute basis. Comcast’s cable broadband unit faced ongoing share loss to fixed wireless and fiber competition. Muted macro tower demand pressured American Tower shares with U.S. mobile carriers having completed the bulk of their initial 5G network deployments. The portfolio reflects our focus on digital disruptors and the infrastructure operators enabling digital disruption. We aim to invest behind durable secular trends in the technology, media, and telecommunications space, balancing high conviction with responsible concentration when sizing positions in the portfolio."
The above is followed by a roughly page-long section having graphs and some limited commentary. But it's more cut & dry, basically explaining how the fund's performance compared to benchmark(s).
ISTM - The reports and what passes as "commentary" in recent years have become very dry & generic sounding where they once were colorful, witty and even speculative about what lie ahead. Perhaps this fund is an exception? But I doubt it.
A link to the PRMTX commentary from 09/30/2025 is below.
There not that much information in this particular commentary.
https://www.troweprice.com/literature/public/country/us/language/en/literature-type/portfolio-update/sub-type/portfolio-update?productCode=MTF¤cy=USD