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IVWAX- am I wrong to love this fund?
Old 06-15-2014, 11:46 AM   #1
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IVWAX- am I wrong to love this fund?

IVWAX IVA Worldwide Fund

http://www.ivafunds.com/documents/IV...31,%202014.pdf

Managers ran Sogen Global (I think) before setting out on their own about 5-7 years ago.
Fund seeks to deliver "absolute returns", with the dual goals of preserving capital yet outperforming the equity MSCI All Country World Index over market cycles.
They seem very responsible to shareholders, having shut down the fund to new shareholders as valuations have risen, to me, showing they are more concerned with shareholder returns than maximizing their fees on AUM.
Current (March 31, 2014) views: soaring valuations for most asset classes; QE makes for very unique financial history; discounts on stocks are unappealing; AA=52% Equity, 10%FI, 35% Cash, 3% Gold.

I like the idea of lessening volatility as I am currently retired, and don't feel I am as good as these guys in adjusting AA to changing conditions.

Currently own some shares, thinking of moving substantial assets to these guys to reach $1mm no load breakpoint when they start reducing cash holdings.

Anybody familiar with IVWAX?
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Old 06-15-2014, 11:59 AM   #2
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Fairly expensive 1.27% ER, with a 12b-1 fee, and the front load up to $1M. Not something I would touch, but an interesting fund.
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Old 06-15-2014, 12:49 PM   #3
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Fairly expensive 1.27% ER, with a 12b-1 fee, and the front load up to $1M. Not something I would touch...
+1

I learned why it isn't a good idea to fall in love with a fund several decades ago.
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Old 06-15-2014, 01:08 PM   #4
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It appears the fund opened at the market bottom, five year bull is their performance history.
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Old 06-15-2014, 02:14 PM   #5
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It appears the fund opened at the market bottom, five year bull is their performance history.
Pretty good time to start a fund, Sep. 2008.

Charles de Vaulx - Wikipedia, the free encyclopedia

Above a link to Wiki on one of the managers. Says they employ value oriented G&D methods.
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Old 06-15-2014, 06:54 PM   #6
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I'd compare to Vanguard or Fidelity index funds.........THEY ARE EXPENSIVE.......not worth it in my opinion.......but....I hate fees, love index funds and ETFs.
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Old 06-15-2014, 08:11 PM   #7
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Before investing in something so expensive, I'd compare to similar funds that just match the index. This fund does not seem to outperform any of the common tickers you hear so much about. Since it holds 35% cash it has smoother performance. But it doesn't rate very well.
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Old 06-15-2014, 08:36 PM   #8
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8% to 12% return over 5 years in the funds they run. Heck, I did better than that with my eyes closed.
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Old 06-15-2014, 09:10 PM   #9
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Yes the OP is wrong to love IVWAX

I avoid active management as much as possible (I still have some Wellesley), because chasing alpha is usually a loosing proposition. Anyone would be foolish to pay high fees for such a fund. I stick with Vanguard Admiral funds with ERs of as low as 0.05%. I don't worry about performance at all, just matching an broad index and keeping fees low.
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Old 06-16-2014, 08:35 AM   #10
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It underperforms simple index funds which invest in similar markets. At the same time it charges huge fees.

This fund is great for Fund manager but not for you
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Old 06-16-2014, 10:04 AM   #11
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Here are real numbers, comparing growth of 10K to two benchmarks. I wouldn't go near IVWAX for our personal investments.

Growth of $10,000 Investment from 05/31/2009 to 05/31/2014

IVWAX $17,038.66
MSCI World NR USD $19,660.35
World Allocation $15,390.59
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Old 06-16-2014, 10:11 AM   #12
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Yes, if you went to an similiar index, keep the 35% cash if you desire, the smoothing. You could lose the 5% front end load, drop the expense ratio from 1.27% down to ~.05-.07, your up 6.2% over IVWAX.

I have a very simple rule, I never pay front end loads, 12b1 fees, or deffered sales charges. Maybe I miss a really great fund, but IMHO, there are no "magic" funds that consistently can beat the drag of those fees. Those type fees are so last century. Best wishes.
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Old 06-16-2014, 10:46 AM   #13
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I'd like to see how they weather a down market before I'd recommend it. Like others have said, a high expense ratio may not seem to matter when markets go up, but it becomes more important during a down market. On the other hand, you were much better off investing in IVWAX than in CDs during this period.
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Old 06-16-2014, 11:03 AM   #14
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(snip)............Those type fees are so last century.
Well stated.
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Old 07-06-2014, 01:29 PM   #15
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IVWAX is one of the holdings I'm selling in the process of transitioning to a self-managed 3-fund portfolio at Vanguard.
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