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FYI on 13 yr rtns on Indexes and AMBF's
Old 05-15-2009, 09:28 AM   #1
Recycles dryer sheets
Join Date: Oct 2008
Posts: 295
FYI on 13 yr rtns on Indexes and AMBF's

This is Just some Information for people who are like myself > "The Real Lazy Inwestor"
and although there are Pro's and Con's to everykind of Investing?
here is just what has worked for me since 96'...

Just using Historic/PastPerformance .Which May Not project the future, but It Has IMPROVED MY ODDS !
and I see no reason to revert back to using Index Funds...
Using M* New Beta Chart @ M* Chart Beta Fund Chart & Set to Maximum
Using the same Max period compared to OAKBX..
Equals to yrs: 96'-2009 = 13 yrs And Total values per a $10k Cost Basis Invested.
> Note: Of course, always Recheck Results shown before using them for your own Research & Handicapping
> however, I feel using 2008's Rtns for both categories is Not as Accurate Going fwd., but using 96-2007 rtns will
be more Attuned to future performance of both types of Investment types in the next 13 yr. period... At least I hope so..
> My AMBF's are a Mix of Aggressive and Moderate types..for while working
>I Added Conservative one's In My Retirement ( HSTRX) since it went IPO in 03'.


OAKBX Oakmark Equity & Income I $36,588.64 = +265%= 20.3%
FPAC-FPA Crescent: 30,768.26 = 207% =15.9%
PRPFX-Permanent Portfolio: 24,409.69 =144%=11.07%
PRWCX-T. Rowe Price Capital Appreciation: 28,529.63 = 185%=14.2%
4 Fund Avearge..................$30,007 = +200%= +15.38%
09' Ave. Mix = 55/45

Discloseur: For my Own Retirement Portfolio ( RP ) since Retiring I added additional Bond Funds.
And Own different Types of AMBF's & Bond Funds of Aggressive, Moderate and Conservative
Since I acquired about 30% More $ than Needed for my Retirement needs, I can afford to

take on alittle more Risk.. and may not be best for those that Do not have that extra $ cushion..

INDEX'S for same period
VTSMX Total Stock Market index $17,112 = 71% = 5.46%

VBMFX Vanguard Total Bond Market Index: 21,312.21 = +113% = 8.7%

Ave same Mix @ 55/45 =......................$19,000 = 90% = 6.92%

80/20 = $17,940
70/30 = 18,360
60/40 = 18,780
50/50 = 19,200
40/60 = 19,620
30/70 = 20,040

AMBF's Vanguard Index
60/40 VWELX = $23,713
40/60 VWINX = 23,288

AMBF's @ $30,000 vs:
VWINX's $23,288 = ( - $6,712 ) = (22%)
Increase Amt. & % req'd to be added to the $10k Cost Basis to do same?
= + $3,000 = +30%..
Thus If you can? Just add +30% to your Savings Plan, put it in this Kind of AMBF-Index
Fund and forget about having to use other AMBF's and always needing to Replace them.

AMF Bond Funds: FYI..
*EMDB's ( Emerging Market Debt Bond)
> Note: In 2007 I sold my LSBRX and in 09' Added to my FNMIX and I doubt I will rtn
to using anyother Global/Int'l bond fund for the foreseeable future..
FNMIX Fidelity New markets Income $43, 180 = 331% = 25.46%
TGEIX TCW..................................... 37,701

Footnote on Using Global Bond Funds Vs *EMDB's
EMDB's 97-09'
FNMIX = $30,775
LSBRX = 21,898
Look up your Global Bond Fund Choice for the same period to compare to the EMDB fund.
* Can also use PowerShares Emerging Markets Sovereign Debt (PCY)

Don't need More funds, just utilize Your Current % Allocation?
> If you already have a % Allocation set up, you may not need to change it..!
> By using the Reverse Method of my Portfolio % Mixes in Bull and Bear Markets
has Increased my Rtns. by an ave of +2.6% apy for past 13 yrs
> In Addition to watching What my AMBF Mgrs are doing, I also use the 200 DMA
to tell me when start making the moves, But In 25% - DCA Increments..
> But, I don't think it's worth doing this using a Smaller % allocation difference of 20%
You will have to do the Research & comparisons to determine that for yourself..

Bond Funds from the guidence from : William Larkin, fixed-income portfolio manager at Cabot Money Management, in Salem, Mass.,
says his portfolio was originally designed for conservative clients who wanted conservative investments. @ Cabot Money Management - Welcome

2009 Recommended Bond Port & Comparative Funds in { }

25% iShares Barclays Aggregate Bond ETF (AGG) (Tracks a broad index of high-quality U.S. bonds) {VBMFX }
25% iShares iboxx $ Investment Grade Corporate (LQD) (Tracks an index of the most liquid, long-term corporate bonds) {VWESX}
10% Fidelity Floating Rate High Income (FFRHX) (Invests in floating rate bank loans that automatically adjusts to rising short-term interest rates. It offers additional inflation hedge) & Only for Your ST COH for your bills and only for this yr of 09', not 4 LT.( 08' it was Shrt US Gov't Like VSGBX )
10% iShares MBS Fixed Income (MBB) (Tracks a broad index mortgage-backed securities) { VFIIX }
7.5% SPDR DB International Govt Inflation-Protected Bond (WIP) (Invests in an index of non-U.S., inflation-linked bonds) {VIPSX}
7.5% PowerShares Emerging Markets Sovereign Debt (PCY) (Tracks an index of emerging markets government debt) (PREMX/FNMIX}
7.5% iShares Barclays TIPS Bond (TIP) (Tracks an index of inflation-protected, U.S. Treasury securities) { VIPSX }
7.5% iShares Iboxx $ High Yield Corporate Bond (HYG) (Tracks an index of high yield bonds) {VWEHX }
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