Pssst... Interview with VWINX managers

[ats5g]

Since Vanguard's Wellesley Income fund has such a following here, check out this Interview with Jack Ryan and Earl McEvoy, the outgoing managers of Vanguard's Wellesley Income fund.

I thought the Wellesley proponents would like this quote:

During your tenure, the Wellesley Income Fund nearly kept pace with the Standard & Poor's 500 Index, despite the fund's sizable bond allocation. Are there any takeaways for investors?

Mr. McEvoy: With 65% bonds, we had a favorable tailwind, with rates basically coming down during that period. So that helped. I did go back and look at the returns of bonds and stocks for the last 20 years, and basically, stocks were up 11%, junk bonds were up 8%, and high-grade bonds were up about 7% [as of April 30, 2008]. So our ability to keep pace with the stock market is really a tribute to what Jack did on the stock side.

Mr. Ryan: I think our job as portfolio managers is to add value to the process. If you can run with the pack and periodically have a good idea, that's what you need to do to produce returns above average. For this fund, because of its stock and bond mix, quite often when one asset class does well or poorly, that result is dampened out. I've been invested in the Wellesley Income Fund for decades, and there's never been a point in time where I've said, "Gee, this is scary." The negative returns have tended to be small. It's hard to have a really scary year. We try to avoid that risk in Wellesley.

I was hoping with all their learnin', they could come up with something better than "Gee, this is scary."

Also shows that you don't have to be a looker to manage money.

- Alec

 

[W2R]

Also shows that you don't have to be a looker to manage money.

Hey, nothing wrong with their looks! It's not how much hair is on the head, it's what is UNDER that hair that counts, right?

Interesting insight on Wellesley's investment strategy. Thanks.

 

[FUEGO]

Looks like two guys I would want running my 35/65 moderate allocation fund if I was an investor in Wellesley.

 

[MGYog]

my 2 rinbi worth

Time and again I've told my kids: The nerds run this world (being a nerd), and not the jocks, so don't belittle your nerd friends. Someday, you might want a job from that nerd!!!!

Hey, nothing wrong with their looks! It's not how much hair is on the head, it's what is UNDER that hair that counts, right?

Interesting insight on Wellesley's investment strategy. Thanks.

 

[Bestwifeever]

They might not be hotties but at least they have outgoing personalities

Are you psssters worried that they are outgoing?

 

[W2R]

They might not be hotties but at least they have outgoing personalities

Are you psssters worried that they are outgoing?

Nah... at least I'm not. It's not like Wellesley put out "help wanted" ads on monster.com or anything. Keogh and Reckmeyer are probably going to be just fine.

Reckmeyer has been with Wellington Management for 14 years and worked closely with Ryan before he left.

Keogh has been with Wellington Management since dirt was young (1979?) and will be doing the bond portion.

 

[unclemick]

Pssst - the Norwegian widow is interested in the dividends.

'Show me the SEC yield' that YTD column is just a flash in the pan. I care how pretty you dance.

101, 42% humidity predicted by 4 pm here.

heh heh heh - Ya know I bet they good next to the Vanguard computers rebalancing my Target 2015. I guess the computers don't much chance to dress up or go out much.

 

[FIREd]

Not worried either. But McEnvoy and Ryan look exactly how I would expect managers of a boring, conservative fund to look like! Nerds rule!!!!

 

[FIREd]

Pssst - the Norwegian widow is interested in the dividends.

'Show me the SEC yield' that YTD column is just a flash in the pan. I care how pretty you dance.

101, 42% humidity predicted by 4 pm here.

heh heh heh - Ya know I bet they good next to the Vanguard computers rebalancing my Target 2015. I guess the computers don't much chance to dress up or go out much.

Bah, only high 80s in Valley Forge, PA. Looks like VG's computers will keep purring just fine (whether dressed up or down) to rebalance your Target 2015!

 

[HFWR]

101, 42% humidity predicted by 4 pm here.

Yeah, 100 degrees here, too. Last night at 10PM...

 

[Notmuchlonger]

Yeah, 100 degrees here, too. Last night at 10PM...

But is it dry heat?

 

[unclemick]

But is it dry heat?

Apparently not - I actually heard a woman mention she liked the 'dry heat' in Witchita compared to KC!

heh heh heh - .

 

[Notmuchlonger]

Apparently not - I actually heard a woman mention she liked the 'dry heat' in Witchita compared to KC!

heh heh heh - .

Ya I was in KC the other day...ya dry heat..lol..

 

[clifp]

Not worried either. But McEnvoy and Ryan look exactly how I would expect managers of a boring, conservative fund to look like! Nerds rule!!!!

I don't know they look exactly (maybe even the same guys) like two guys I saw at Vegas in June scattering thousand chips all over the craps tables with a small harem of hotties draped on their arms. I'm pretty sure they were from Boston (accents) and were talking about fund management. Nerds gone wild with psst Wellsley money.

 

[FIRE'd@51]

Didn't the legendary John Neff run the equity portion of Wellesley before these two?

 

[ats5g]

Didn't the legendary John Neff run the equity portion of Wellesley before these two?

AFAIK, Neff only managed Windsor.