Tommy_Dolitte
Recycles dryer sheets
- Joined
- Jul 20, 2004
- Messages
- 170
Before I go Morningstaring and Bogle-ing....any thoughts?
TD
TD
Investment strategy
- The fund invests in common stocks, long-term U.S. Treasury bonds, and money market instruments (cash investments). The mix, or allocation, of the three types of assets changes from time to time depending on which mix appears to offer the best combination of expected returns and risk. Although the fund normally invests in two or more of the three asset types, it may at any time place all of its assets in one type—stocks, bonds, or cash. To accomplish changes in allocations quickly and cost-effectively, the fund may use futures contracts instead of buying and selling individual securities.
- In evaluating the attractiveness of common stocks versus bonds or cash, the advisor uses a "dividend-discount" model that estimates the expected return of the Standard & Poor's 500 Composite Stock Price Index based on forecasts of earnings by the 500 companies whose stocks make up the index. The advisor assumes that the future returns on bonds will equal the current yield to maturity of long-term, high-quality, corporate bonds. The expected returns on cash are estimated using the current yield on three-month certificates of deposit and a long-term forecast of inflation. The advisor also estimates the future volatility of returns, largely based on past fluctuations for each asset class. The advisor's proprietary computer model uses the return and volatility estimates to establish the fund's allocation.
Now, if my 401(k) nazis would ever add a REIT fund, or when I've got enough money in the IRA to add REIT, I'd be in heaven.
moniters funds it FEELS can outperform the S&P500. My reply noted to him that none of the funds they chose has beaten the index and provided numbers to support. I never heard back...
actively managed high cost funds that were offered & he replied saying the board reviews & moniters funds it feels can outperform the S&P500.