looking back over time , i find i had to go back to 2011 to find a time frame that the basic 4x4 beat PRPFX
i would have thought the expenses alone would have made that a rare occurrence but every year i threw in portfolio visualizer after 2011 to present had the 4x4 behind
prpfx
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mathjak107
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Re: prpfx
Found this Morningstar link:
https://www.morningstar.com/funds/xnas/prpfx/portfolio
If I am reading the numbers correctly, it looks like most of their bonds are short duration corporates with most of those bonds having a BBB rating.
If they have been following this strategy of holding lots of lower quality corporate debt for a long time, that would maybe explain the big dip during the GFC as shown here:
https://www.morningstar.com/funds/xnas/prpfx/chart
No flight to quality backstop if the fund holds low-quality bonds. Of course, as I have written elsewhere on this forum, one had to really be watching the markets closely AND get the timing correct on selling LTTs and buying stocks in late 2008 to get the benefit of that flight to safety (ditto for March of 2020). That last part totally goes against the HB philosophy of checking the portfolio "about once a year".
That flight to quality backstop only holds up until the markets settle down... which effectively means *trading* LTTs as opposed to *holding* them (mathjak nodding his head in agreement.
)
https://www.morningstar.com/funds/xnas/prpfx/portfolio
If I am reading the numbers correctly, it looks like most of their bonds are short duration corporates with most of those bonds having a BBB rating.
If they have been following this strategy of holding lots of lower quality corporate debt for a long time, that would maybe explain the big dip during the GFC as shown here:
https://www.morningstar.com/funds/xnas/prpfx/chart
No flight to quality backstop if the fund holds low-quality bonds. Of course, as I have written elsewhere on this forum, one had to really be watching the markets closely AND get the timing correct on selling LTTs and buying stocks in late 2008 to get the benefit of that flight to safety (ditto for March of 2020). That last part totally goes against the HB philosophy of checking the portfolio "about once a year".
That flight to quality backstop only holds up until the markets settle down... which effectively means *trading* LTTs as opposed to *holding* them (mathjak nodding his head in agreement.
)-
mathjak107
- Executive Member
- Posts: 4483
- Joined: Fri Jun 19, 2015 2:54 am
- Location: bayside queens ny
- Contact:
Re: prpfx
yes , the fund has diverted from its original concept which was not based on BBB.
That is the most dangerous segment of the bond market ..
with 70% of non govt bonds in it , it is the last rung of investment grade .
one slip in rating and every institution, insurance company , fund , that is limited to investment grade will have to dump them with poor liquidity
That is the most dangerous segment of the bond market ..
with 70% of non govt bonds in it , it is the last rung of investment grade .
one slip in rating and every institution, insurance company , fund , that is limited to investment grade will have to dump them with poor liquidity
Re: prpfx
Permanent Portfolio Parent Rating
Below Average
Morningstar Manager Research
Oct 30, 2023
Permanent Portfolio fails to meet industry-standard stewardship qualities, culminating in a Below Average Parent Pillar rating.
https://www.morningstar.com/asset-manag ... BN000009PM
Seems Morningstar isn't too impressed with the PRPFX fund manager. PRPFX still gets 4 out of 5 stars though
https://www.morningstar.com/asset-manag ... 09PM/funds
Below Average
Morningstar Manager Research
Oct 30, 2023
Permanent Portfolio fails to meet industry-standard stewardship qualities, culminating in a Below Average Parent Pillar rating.
https://www.morningstar.com/asset-manag ... BN000009PM
Seems Morningstar isn't too impressed with the PRPFX fund manager. PRPFX still gets 4 out of 5 stars though
https://www.morningstar.com/asset-manag ... 09PM/funds