docMutualFunds - The Seattle Times
download 
Report Transcription
MutualFunds - The Seattle Times
D4 Business | 2R | SUNDAY, JANUARY 18, 2015 MutualFunds FEARLESS FORECAST FOR 2015 FUND STORIES threeyear result. That is a way for advisers and fund brass to suggest Chuck Jaffe that the 13.7 percent gain Syndicated columnist on the Standard & Poor’s The mu 500 in 2014 represented tualfund more of a down year than business is the sixth straight year of a more obtuse bullmarket recovery. and difficult Domestic largecap funds to read than are up about 19 percent ever, from annualized, on average, new fund over the last three years, types and investment class while the average foreign es to a market that has con stock fund is up doubledig founded pundits and inves its, despite a down year in tors alike. 2014. That doesn’t mean I can’t The last three years have try to get a reading on it. been anything but average, In 20 years of making my however; while the industry calls on the industry, I typi will keep putting its best cally have gotten about foot forward, at some point threefourths of my annual the music is going to stop prognostications right; playing and investors are when I’m off, it’s often more going to have a year when a case of being “early” than they again think that funds flatout wrong. failed to live up to expecta The big fund stories for tions. 2015 will include: Unpleasant tax surpris An alternativefund es from some big 2014 blowup. winners. Problems with GL Beyond The taxloss carryfor Income — a closedend fund wards from the financial that invested in illiquid crisis have been exhausted, consumer debt, and where replaced by large gains that the manager is now facing will generate taxable distri fraud charges — show the butions when longtime worst of what could happen winners are sold. in “alternatives funds,” but Distributions aren’t a big to call GL a fringe player problem in good years like may be giving it too much 2014, when funds, general credit. ly, were up and the taxes That said, the problems feel like a cost of doing show how hard it is for fund business. boards, compliance officers If there’s a market rever and others to get a good sal, a significant decline or a handle on a complex, illiq flat or singledigit year, uid, potentially volatile or however — and especially if unstable asset class. increased volatility pushes Judging from the number managers to sell into appar of altfund false starts — ent trouble — funds may where firms have brought find themselves generating ideas to market and killed tax bills that equal or eclipse them quickly — some bad their growth; investors ideas haven’t survived long aren’t going to be happy enough to get into trouble. with oversized tax bills on That changes this year. mediocre results. Some liquid alternatives Betterthanexpected fund will prove to be not so bondfund returns. fluid, and as investors try to Pundits have been saying figure out how — and if — for years that the moment they can get their money interest rates started to out/back, the entire indus creep up, bond funds would try will take a step back to be crushed. question whether “alterna That’s not happening in tive” is actually a euphe 2015. Sure, the Federal mism for “too risky.” Reserve is poised to hike An SEC intervention on rates, but it won’t happen alternative funds. until late in the year (if at Whether or not the first all), and it won’t be enough scenario is correct, the Se to surprise a market that curities and Exchange Com already is anticipating small mission is working on a increases. review of alt funds, not so More targetdate funds much because it expects being closed for being trouble but because regula offtarget. tors wonder whether fund Several notable fund boards are properly companies shuttered their equipped to oversee these entire lineup of targetdate funds. funds in 2014 — from Expect them to decide iShares closing ETFs to Legg that trustees can’t be trusted Mason and Hartford shut on the most complex of tering traditional funds. these issues, not without That wasn’t an anomaly so some additional hurdles to much as a start. jump through. As the fund industry This, too, will slow the struggles to figure out how growth of new issues in the to best categorize and man alternatives space this year. age lifecycle funds — com Threeyear track re panies that have failed to cords being used to con gain much market share are vince investors that going to bail out, regroup they’ve made a mistake and figure out how to get being cautious. back into the market more In 2014, the focus was on effectively as the industry fiveyear records because comes up with what it will they looked good with the market as a “better ap financial crisis completely proach” to the problem. out of the data. Those ugly numbers from Chuck Jaffe is senior columnist for MarketWatch. He can be reached 200809 are still in the 10 at [email protected] or at and 15year records so the P.O. Box 70, number advisers and funds Cohasset, MA 020250070. Copyright 2015, MarketWatch will focus on this year is the Your Funds Local man sues Pimco over advisory fees Bloomberg News Pacific Investment Man agement Co. will fight a lawsuit by a shareholder of its Pimco Total Return Fund alleging that the company gouges investors with ex cessive advisory fees to support billiondollar bo nuses for top executives. Pimco was sued Dec. 31 in Seattle federal court over claims that fees totaling $1.2 billion in 2013 are unfair and excessive, bear no reasonable relationship to the services rendered and couldn’t have been the product of armslength negotiations, according to the complaint. Pimco breached its fidu ciary duties to investors and should return fees and improper compensation to shareholders, investor Rob ert Kenny, of Clinton, Island County, said in the com plaint. “Pimco believes this law suit is without merit and intends to vigorously de fend itself,” Agnes Crane, a Pimco spokeswoman, said Wednesday in an email. Pimco paid more than $1.5 billion in bonuses to top executives while the fund’s performance suf fered, said Kenny, who is represented by attorneys at Keller Rohrback, a firm that has represented institution al investors in lawsuits over LIBOR manipulation and securities lending. Bill Gross, who managed the Total Return Fund, the world’s biggest bond fund, left in September to join Janus Capital Group. He received $290 million in bonus pay in 2013, Kenny said in the complaint. Fund Tracker Weekly spotlight on mutual fund performance Winners and losers: A mutualfund scorecard Fund Wkly % YTD % obj return return Biggest funds American Funds A AmcpA p American Funds A AMutlA p American Funds A BalA p American Funds A BondA p American Funds A CapIBA p American Funds A CapWGA p American Funds A FdInvA p American Funds A GwthA p American Funds A IncoA p American Funds A ICAA p American Funds A N PerA p American Funds A SmCpA p American Funds A WshA p Artisan Funds Intl BlackRock Instl StrIncoOpp BlackRock Instl EquityDv BlackRock Instl GlbAlloc r Dimensional Fds EmMCrEq Dimensional Fds EmMktV Dimensional Fds USLgVa Dodge&Cox Balanced Dodge&Cox Income Dodge&Cox IntlStk Dodge&Cox Stock DoubleLine Funds TRBd I FPA Funds FPACres Fidelity Freedom FF2020K Fidelity Freedom FF2030K Fidelity Invest Balanc Fidelity Invest Contra Fidelity Invest GroCo e Fidelity Invest LowP r Fidelity Invest Puritn Fidelity Invest TotalBd Fidelity Spart Adv 500IdxAdv Fidelity Spart Adv TotMktAd r Frank/Temp Frnk A IncomA p Frank/TmpFrnkAdv GlbBdAdv Harbor Funds CapApInst Harbor Funds Intl r Loomis Sayles LSBondI MFS Funds I ValueI Metro West Fds TotRtBdI Oakmark Funds I EqtyInc r Oakmark Funds I Intl Oakmark Funds I Oakmark Oppenheimer Y DevMktY PIMCO Instl PIMS AllAsset PIMCO Instl PIMS TotRt PIMCO Funds Instl Income Price Funds BlChip Price Funds CapApp Price Funds EqInc Price Funds EqIndex Price Funds Growth Price Funds MidCap Price Funds N Horiz Price Funds N Inc Price Funds Ret2020 Price Funds Ret2030 Price Funds Value Schwab Funds S&P Sel Vanguard Admiral 500Adml Vanguard Admiral GNMA Ad Vanguard Admiral HlthCr Vanguard Admiral ITAdml Vanguard Admiral ITGrAdm Vanguard Admiral LtdTrAd Vanguard Admiral MCpAdml Vanguard Admiral PrmCap r Vanguard Admiral STIGrAd Vanguard Admiral SmCAdm Vanguard Admiral TtlBAdml Vanguard Admiral WellslAdm Vanguard Admiral WelltnAdm Vanguard Admiral WdsrIIAd Vanguard Fds TotIntBInv Vanguard Fds DivdGro Vanguard Fds STAR Vanguard Fds TgtRe2015 Vanguard Fds TgRe2020 Vanguard Fds TgtRe2025 Vanguard Fds TgRe2030 Vanguard Fds TgtRe2035 Vanguard Fds TgtRe2040 Vanguard Fds TgtRe2045 Vanguard Idx Fds TotlIntl XC LV BL IB BL GL LC LG BL LC GL GL LC IL GT EI MP EM EM LV BL IB IL LV MT MP MP MP BL LG XG MC BL IB SP XC BL WB LG IL GT LC IB BL IL LC EM MP IB GT LG BL EI SP LG MG SG IB MP MP LV SP SP MT HB IM IB SM MC LC SB SC IB BL BL LV WB EI BL MP MP MP MP MP MP MP IL 0.7 0.2 0.4 +0.4 +0.8 +0.7 0.8 0.7 +0.4 0.1 +0.3 0.6 0.6 +1.5 +0.2 1.1 +0.5 +0.5 0.2 1.9 0.9 +0.2 +0.7 1.5 NA 0.5 0.3 0.5 0.8 0.9 1.3 0.7 0.8 +0.4 1.2 1.2 0.0 +0.4 1.7 +1.8 0.0 0.8 +0.4 1.1 +0.4 1.7 +0.3 NA +0.6 NA 1.4 0.6 1.1 1.2 1.4 1.1 1.0 +0.2 0.3 0.4 1.5 1.2 1.2 0.0 +1.0 +0.6 +0.5 +0.4 1.2 0.3 +0.2 0.9 +0.4 +0.2 0.1 1.6 +0.6 0.1 0.3 0.0 0.1 0.1 0.2 0.3 0.3 0.3 +1.2 1.6 0.8 0.7 +1.3 +0.5 0.3 1.8 1.8 +0.2 1.0 0.8 1.0 1.4 +0.8 +0.4 2.3 0.1 +1.0 +0.3 3.4 1.6 +0.7 0.9 2.7 NA 1.2 0.6 1.2 1.2 1.9 1.3 2.3 1.0 +1.2 1.9 1.9 0.4 +0.5 2.4 0.9 +0.1 1.8 +1.2 2.2 2.1 3.5 0.7 NA +1.6 NA 1.9 0.7 2.5 1.9 2.2 1.5 2.1 +1.1 0.6 1.0 2.2 1.9 1.8 +0.3 +3.3 +1.2 +1.6 +0.6 1.7 0.9 +0.5 2.0 +1.4 +0.7 0.3 2.6 +1.1 0.3 0.6 0.1 0.3 0.5 0.7 0.9 1.1 1.1 0.3 XC SP XC Vanguard Idx Fds TotStk Vanguard Instl Fds InstIdx Vanguard Instl Fds InsTStPlus 5yr % return +14.4 +13.2 +11.6 +4.5 +8.8 +8.7 +12.5 +12.7 +10.9 +12.7 +10.0 +10.5 +14.2 +8.9 +5.4 +12.0 +6.2 +2.3 0.6 +15.4 +11.8 +5.1 +7.1 +14.2 NS +9.9 +7.8 +8.8 +11.0 +14.3 +17.3 +14.4 +11.0 +5.3 +14.5 +14.8 +8.9 +5.6 +13.8 +5.0 +8.0 +13.6 +6.7 +9.0 +8.3 +15.1 +5.1 NA +5.1 NA +16.2 +12.6 +12.1 +14.3 +15.2 +16.7 +20.5 +4.4 +9.7 +10.8 +14.9 +14.5 +14.5 +4.2 +20.3 +4.8 +6.3 +2.1 +16.1 +15.8 +2.9 +15.9 +4.4 +9.4 +10.9 +12.9 NS +14.2 +9.6 +8.5 +9.2 +9.7 +10.2 +10.6 +10.9 +10.9 +3.7 Best performers Columbia Cl I,T&G AbRtCurIn I GAMCO Funds GoldAAA OCM Funds GoldInv t Fidelity Selects Gold r Amer Century Inv GlGold Wells Fargo Adv A PrecMtlA Deutsche Trust Gold&Prc First Eagle SGenGld p Tocqueville Fds Gold t USAA Group PrecMM US Global Investors Gld&Mtls Invesco Funds A GoldPrec p Frank/Temp Frnk A GoldPrM A Eaton Vance A GrIndia t Invest Managers EuroPGld A Midas Funds Perpetual t Rydex Investor PrecMet Midas Funds Midas Fd t US Global Investors WldPrcMn Matthews Asian IndiaInv r ProFunds Inv Cl UltraIntl Rydex Dynamic InvNasdSt H ProFunds Inv Cl PrecMetal Rydex H Class EurStratH ProFunds Inv Cl UltShNq100 Fidelity Invest GNMA Matthews Asian Japan Inv Putnam Funds A IntlEq p Frank/Temp Frnk A IndiaGrA p ProFunds Inv Cl RealEst Worst performers AMG Managers FQGlbAlt S CGM Funds Focus Fairholme ProFunds Inv Cl InternetUlt HodgesFd Berkshire Funds Focus Fidelity Selects Comp Legg Mason Instl CMOppor Natixis Funds TargetEqA MassMutual Select FocVal R5 ProFunds Inv Cl UltNasd100 JPMorgan Sel Cls DynSmCap Fidelity Selects Brokr Fidelity Selects Banking Price Funds FinSvcs CGM Funds Mutl Rydex Dynamic NasdStrH Snow Capital OppInst r Ivy Funds ValueA p Invest Managers TowleDpV Allianz Fds Instl GlblTech I Oak Assoc Fds BlkOkEm Price Funds GlbTech Waddell & Reed Adv ValueA p Rydex Investor Internet Invesco Funds A SmCpValA t Jacob Funds Internt Inv Kinetics Funds SmCap Wells Fargo Adv A SpcTchA Dreyfus TechGroA 1.2 1.2 1.1 1.9 +14.7 1.8 +14.5 1.8 +14.9 Fund Wkly % YTD % obj return return 5yr % return MP +14.4 +13.9 +2.8 AU +7.9 +18.8 9.9 AU +7.3 +19.1 9.6 AU +7.2 +20.0 12.5 AU +6.9 +18.1 12.0 AU +6.9 +17.8 10.4 AU +6.6 +16.8 13.6 AU +6.3 +15.5 8.1 AU +6.0 +15.7 7.9 AU +5.8 +18.2 12.9 AU +5.6 +16.3 14.0 AU +5.5 +16.6 9.7 AU +5.3 +15.3 13.2 PR +5.1 +6.3 +4.2 AU +5.0 +13.1 NS BL +5.0 +6.1 +1.5 AU +4.7 +15.8 12.9 AU +4.6 +14.1 22.4 AU +4.2 +10.3 17.8 PR +4.0 +6.3 +11.7 SQ +3.7 0.6 +0.6 SQ +3.5 +4.3 36.1 SQ +3.5 +16.5 22.7 SQ +3.4 +0.1 +0.3 SQ +3.3 +4.0 36.3 MT +3.3 +3.6 +4.9 PR +3.2 +2.9 +8.6 IL +3.2 +0.7 +5.5 PR +3.1 +4.7 +7.9 SQ +3.0 +9.6 +22.3 Fund Wkly % YTD % obj return return MP XC XV SQ XG XG TK XC LC XC SQ SG FS FS FS BL SQ XV LV SV TK TK TK LV TK SC TK GL TK TK 8.7 5.8 5.1 4.2 4.1 3.7 3.7 3.7 3.7 3.6 3.5 3.5 3.5 3.5 3.4 3.4 3.4 3.4 3.2 3.2 3.2 3.2 3.1 3.1 3.1 3.1 3.1 3.0 3.0 2.9 7.4 8.3 8.5 7.1 6.4 3.1 4.5 5.1 5.0 5.7 4.7 3.5 7.0 8.6 6.4 4.5 4.6 6.0 5.0 7.4 2.8 2.7 4.5 5.1 3.9 5.4 3.1 3.6 2.8 3.2 5yr % return 4.6 +4.3 +5.6 +25.4 +13.0 +17.9 +14.4 +13.1 +8.3 +15.8 +33.3 +15.5 +9.1 +10.3 +10.8 +5.8 +33.5 +10.8 +12.2 NS +15.8 +11.0 +18.5 +12.3 +13.9 +15.6 +13.7 +11.4 +15.2 +13.7 Footnotes: e: Ex capitalgains distribution. f: Previous day{rsquo}s quote. n or nl: No upfront sales charge. p: Fund assets are used to pay for distribution costs. r: redemption fee or contingent deferred sales load may apply. s: Stock dividend or split. t: Both p and r. x: Ex cash dividend. NE: Data in question. NS: Fund did not exist at the start date. NA: No information available. Key to abbreviations and footnotes: Fund objectives: AB: Longterm topgrade corporate and govern ment bonds. AU: Gold oriented. BL: Balanced. EI: Equity income. EM: Emerging markets. EU: European region. GL: Global (includes U.S.). GM: General municipal bond. GT: General taxable bond. HB: Health and biotech. HC: Highyield taxable bond. HM: Highyield municipal bond. IB: Intermediateterm investmentgrade corporate bond. IG: Intermediateterm Treasury/government debt. IL: International (outside U.S.). IM: Intermediateterm municipal bond. LC: Largecap core. LG: Largecap growth. LT: Latin American. LU: Longterm Treasury/government debt. LV: Largecap value. MC: Midcap core. MG: Midcap growth. MP: Mixed portfolio (stocks and bonds). MT: Mortgage. MV: Midcap value. NM: Insured municipal bond. NR: Natural resources. PR: Pacific region. SB: Shortterm investmentgrade corporate bond. SC: Smallcap core. SE: Sector (specific industries). SG: Smallcap growth. SM: Shortterm munici pal debt. SP: S&P 500. SQ: Specialty diversified equity. SS: Single state municipal debt. SU: Shortterm Treasury/government debt. SV: Smallcap value. TK: Science and technology. UN: Unclassified. UT: Utility. WB: World bond. XC: Multicap core. XG: Multicap growth. XV: Multicap value 5year % return: Annualized performance over the past five years. Top 5 mutual funds by objective, yeartodate % return Emerging markets Voya Funds Cl A Frank/Temp Frnk A Columbia Class Z Goldman Sachs Inst WM Blair Fds Inst RussiaA p T BRIC A t EmgMkt r EmMEq EmMkGrI r Equity income StrValDvIS Div&Inc N Utilities p StrDivVal DivOpptyA Federated Instl City Nat Rochdale Invesco Funds A Hussman Funds Columbia Class A Health | biotech Rydex Investor Fidelity Selects Fidelity Advisor A Kinetics Funds Frank/Temp Frnk A Biotech Biotch Biotech A Medical BioDisA p Global Lazard Instl Invest Managers Hartford Fds Y Vanguard Fds Mkt Mster100 GblInfra I KnoLdr Ins GblEqInco GblMnV Inv IntlValue IntlMgdVol AcnIntSIZ IntlFrntr r IntlGrw I Fidelity Invest BMO Funds Invesco Fds Invest Bragg Capital Virtus Funds A Wright Funds Davenport Funds Vanguard Fds Hartford Fds A MassMutual Select YTD % return Smallcap core +1.9 +1.4 +1.1 +0.8 +0.5 Invesco Funds A GoldmanSachsInst Allianz Funds C TouchstoneFamily TouchstoneFamily YTD % return +5.2 +5.1 +4.9 +4.9 +4.2 +3.1 +1.2 +1.1 +1.0 +0.7 Eaton Vance A Matthews Asian Frank/TempFrnkA EuroPac Funds ColumbiaClassA StrDvIn e LowVolEq I Exch QValue GrIncA +1.1 +0.6 +0.3 0.1 0.2 SmallC p SmCapEqty Opport SCCore Inst SmCapGr Y GrIndia t IndiaInv r IndiaGrA p AsiaSmCoA GrChinaA AsiaSciTInv CommA p Telcm SciTech Telcomm Gold oriented Fidelity Selects OCM Funds GAMCO Funds USAA Group Amer Century Inv +0.3 0.4 1.0 1.1 1.2 YTD % return 1.2 2.0 2.2 2.2 2.5 YTD % return Science | technology Matthews Asian DWS Invest A Fidelity Selects USAA Group Rydex Investor 0.9 1.0 1.3 1.3 1.4 YTD % return GlbCmdty r Income A NatResA GlNtRs p New Era Fidelity Invest Oppenheimer A Dreyfus Putnam Funds A Price Funds Pacific region +2.9 +1.9 +1.7 +1.7 +1.6 SlBlCh EqtyOpps StratEq MdValueA S&P MidC I Natural resources YTD % return YTD % return Largecap core YTD % return Midcap core +3.6 +2.4 +2.2 +2.1 +2.1 YTD % return International EuroPac Funds Allianz Fds Instl Columbia Class Z Westcore John Hancock Fds YTD % return Gold r GoldInv t GoldAAA PrecMM GlGold +6.3 +6.3 +4.7 +4.0 +3.7 YTD % return +0.7 +0.3 +0.1 0.2 0.6 YTD % return Sector NewAlt Invest Managers AQR Funds Price Funds Rydex Investor MgdFutSt I MgdFutSt I RealAsset MgdFutStr YTD % return Balanced Perpetual t StrTotRet r StrReRt r RetInc LifeInc Midas Funds Hussman Funds Fidelity Invest AdvanceCapital I Vanguard Fds Intermediate bond ITExQual ITBdAdml StraFxdP TotRtBond TotRt Dimensional Fds Vanguard Admiral PACE Funds P AMG Managers PIMCO Instl PIMS Longterm bond Vanguard Idx Fds Vanguard Admiral Del Inv Instl GuideStone Funds PIMCO Instl PIMS LTBnd LTGrAdml ExtDurI ExtDrGS4 x InvGrCp Longterm U.S. VanguardInstlFds Wasatch Vanguard Admiral Fidelity Spartan Dreyfus YTD % return Mortgage +20.0 +19.1 +18.8 +18.2 +18.1 Fidelity Invest Victory Funds Legg Mason A Wright Funds JPMorgan R Cl +4.4 +3.1 +2.4 +1.9 +1.7 ExDurTreas USTryFd LTsyAdml SpLTTrAd r UST Lng +6.1 +3.7 +1.5 +1.0 +0.8 YTD % return +2.1 +2.1 +1.9 +1.7 +1.6 YTD % return +3.6 +3.0 +2.9 +2.8 +1.7 YTD % return +7.8 +6.8 +5.3 +5.3 +5.2 YTD % return GNMA FundFInc I WAMtgBkA CurIn MtgBckd +3.6 +1.3 +1.2 +1.2 +1.1 HOW SOCIAL SECURITY SUMS UP BENEFITS Investing Scott Burns Syndicated columnist Q: My wife and I are 57 years old. We have a net worth of $1.1 mil lion. The bulk of this is in IRAs managed by Fisher Investments and equity in our home. I recently changed jobs, and my income is consider ably less. It will be two or three years before my income increases to its former level. When looking at my Social Security benefits online, I noticed a note below the benefits section. It said my benefits would remain the same as long as I make $113,000 per year until I retire. Since this won’t happen, what kind of decrease in benefits should I expect? A: Social Security bene fits are calculated from your highest 35 years of earnings. Each year of earnings is adjusted to produce your average indexed monthly earnings. That figure, in turn, is treated by a formula that determines your primary insurance amount (PIA). That figure, your PIA, is the basis for your actual benefit. The PIA formula gives credit to your contribu tions at three levels of income. At the first level, currently up to $816 a month, you get 90 percent credit. Between that amount and $4,917 a month, you get 35 percent credit. And for PIA over $4,917 a month, the crediting rate is only 15 percent. The result of this sharp reduction in the crediting rate as your income rises is that your benefits don’t increase rapidly after you hit what in Social Security language is the second “bend point” of $4,917 a month. So you’ve got some perverse good news: You can earn a good deal less than $113,000 in coming years, and your ultimate Social Security benefit won’t be dramatically affected, particularly since the number of years of lower earnings added to your record will be a small portion of the 35 years used in the calculation. It is also possible that your PIA will actually rise. If that happens, your bene fit will increase even though the last years of earnings were lower than recent years. How can that be? Simple: If some of the next few years replace earlier years with zero earnings or relatively low earnings, your PIA calcula tion will increase because the better earnings will push out the lower earn ings. Q: Unfortunately, my wife is a teacher at a Cath olic school where the only savings plan that has a match (3 percent of salary) is a TIAACREF 403(b) plan. How can my wife liqui date the 403(b) plan, either before or after she stops working at the school? A: The plan your wife has is probably better than the vast majority of the offerings out there for teachers in both private and public schools. When she stops working at the school, she can do a 1035 exchange and enjoy a taxfree transfer of her 403(b) account to her brokerage rollover IRA account. If you have other ques tions about 403(b) plans, visit www.403bwise.com. Questions: [email protected] Copyright 2015, Universal Press Syndicate
