Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Wellington & Wellesley
Old 12-04-2005, 08:42 PM   #1
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Wellington & Wellesley

I know that some people like Wellington + Wellesley. I thought I'd offer the analysis from this M* conversation. From my analysis, it looks like the majority of their return can be replicated by a large value index + a bond fund [long term corp pre 2000, int term post 2000], and that Wellington's management really didn't add any alpha.

Thoughts?

- Alec
__________________

__________________
ats5g is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Wellington & Wellesley
Old 12-04-2005, 10:29 PM   #2
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: Wellington & Wellesley

Agree, can be replicated.* Cheaper too assuming both are index funds.* Your role would be to rebalance so it fits the 60/40 or 40/60 allocation.

Edit - You would want to make sure the duration of your selected bond fund matched than of your target as well. Shouldn't be difficult either.
__________________

__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 05:27 AM   #3
Full time employment: Posting here.
 
Join Date: Mar 2005
Posts: 557
Re: Wellington & Wellesley

The basic portfolio allocation can be duplicated. Nonetheless, we have held both for quite a long time.

Advantages: Both have held to their stratagies over a long time in up and down markets. Both have a long history. Both have long term, in place, management.

I do not, and would not, use these two funds exclusively, but as two bricks in a well balanced portfolio, I think they do fit the bill and at a relatively low cost.

Uncledrz
__________________
uncledrz is offline   Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 06:35 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Re: Wellington & Wellesley

Obviously - the idiots at Morningstar have never contacted the Norwegian widow for the straight skinny. The real question is: what would have been the dividend income (interest too) stream for a real life retiree over the periods of interest - versus the alternative availible index funds - bty - screw volitility and performance.

I will mellow as soon I finish my first cup of coffee this morning.

The answer is not as important as the question - ie why do you ask The question may seem the same - but who are you - early in the savings phase/already retired?, what is your strategy?, etc. etc.

If you can get a real feel for each funds performance relative to 'your' ER plan - then you are ahead of the game.

Heh heh heh - at 12 yrs into ER - me and the wider woman are looking for dividends baby - dividends.
__________________
unclemick is offline   Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 11:20 AM   #5
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Re: Wellington & Wellesley

Quote:
Originally Posted by ats5g
From my analysis, it looks like the majority of their return can be replicated by a large value index + a bond fund [long term corp pre 2000, int term post 2000], and that Wellington's management really didn't add any alpha.
I went from mix-my-own Index 500 / Total Bond to Wellington because I view it as very similar with built-in rebalancing. LS Moderate Growth isn't available in my 401(k) or I might've gone with it instead as I did in my IRA. (disclosure: also threw in some extra int'l index & total bond index and some REIT index for balance & diversification.)
__________________
BigMoneyJim is offline   Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 02:12 PM   #6
 
Posts: n/a
Re: Wellington & Wellesley

geez, I thought this was a discussion on great British Militarists or Toronto Street Names.
__________________
  Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 04:04 PM   #7
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 223
Re: Wellington & Wellesley

Quote:
Originally Posted by unclemick2
Heh heh heh - at 12 yrs into ER - me and the wider woman are looking for dividends baby - dividends.*
Did you really mean to call her the "wider woman"?
__________________
SLC Tortfeasor is offline   Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 04:14 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Wellington & Wellesley

Quote:
Originally Posted by SLC Tortfeasor
Did you really mean to call her the "wider woman"?
I assumed he meant it as "widder woman" i.e. widow woman.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 04:30 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Wellington & Wellesley

I think the wider the better as far as the Norwegian widow is concerned. As long as she can fit in the mailbox each month...
__________________
justin is offline   Reply With Quote
Re: Wellington & Wellesley
Old 12-05-2005, 04:38 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Wellington & Wellesley

Quote:
Originally Posted by unclemick2
Obviously - the idiots at Morningstar have never contacted the Norwegian widow for the straight skinny. The real question is: what would have been the dividend income (interest too) stream for a real life retiree over the periods of interest - versus the alternative availible index funds - bty - screw volitility and performance.

I will mellow as soon I finish my first cup of coffee this morning.

The answer is not as important as the question - ie why do you ask The question may seem the same - but who are you - early in the savings phase/already retired?, what is your strategy?, etc. etc.

If you can get a real feel for each funds performance relative to 'your' ER plan - then you are ahead of the game.

Heh heh heh - at 12 yrs into ER - me and the wider woman are looking for dividends baby - dividends.
BTW, UM, I don't know if you are winding down the putzing portfolio or not, but if you want a couple of ideas for yield:EGLE & STON.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Wellington (Fidelity/TR Price) ferco FIRE and Money 5 09-06-2006 01:33 PM
Recommend Wellesley to parents: good advice? soupcxan FIRE and Money 54 07-17-2006 03:50 PM
Wellesley Income Fund charlie FIRE and Money 46 03-04-2006 07:51 AM
Cute Fuzzy wuzzy Wellington question wallygator69 FIRE and Money 4 02-27-2006 07:14 AM
Wellesley Fund for Aging Parents Familywu FIRE and Money 13 10-09-2004 01:51 PM

 

 
All times are GMT -6. The time now is 09:25 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.