Wellesley Income Fund Large Drop Today?

[TNInvestor]

The broader market was up over 1%. Bonds were down less than .5%. can anyone explain why Vanguard Wellesley Income Fund dropped over 2%?

Thanks for the insight.

 

[wanaberetiree]

Year end capital gains distributions: https://personal.vanguard.com/us/funds/snapshot?FundId=0527&FundIntExt=INT#tab=4

 

[Gumby]

According to the Vanguard website, Wellesley paid out a dividend of $0.13 per share and a capital gain of $0.33 per share, with a record date of 12/14. Today was the first day ex-dividend. According to my off-the-cuff calculations, that's roughly a 2% drop right there.

 

[bondi688]

The same with PrimeCap and Capital Opportunity funds, at first I was wondering what was happening when they dropped 2+% when all indexes were green. It is the year end distribution.

 

[ejman]

I've heard from reliable sources that these fund value drops at the end of the year are in anticipation of the end of the world on December 21 st.

 

[Animorph]

I'm still waiting for a year when we don't get this question!

 

[REWahoo]

I'm still waiting for a year when we don't get this question!

You may get your wish - but only if the Mayans are right.

 

[soupcxan]

We should make this a sticky. Or put it in the FAQ.

 

[samclem]

The broader market was up over 1%. Bonds were down less than .5%. can anyone explain why Vanguard Wellesley Income Fund dropped over 2%?

I believe that checking my fund balances more than once every six months stunts their growth. I have three theories on this: one related to the Heisenberg Uncertainty Principle/Observer Effect, one based on similarities to the unknowable mystery of the illumination status of the refrigerator light, and one based on the loss of self-esteem and ability to thrive that equities suffer when they are not trusted by their owners.

 

[REWahoo]

I believe that checking my fund balances more than once every six months stunts their growth. I have three theories on this: one related to the Heisenberg Uncertainty Principle/Observer Effect, one based on similarities to the unknowable mystery of the illumination status of the refrigerator light, and one based on the loss of self-esteem and ability to thrive that equities suffer when they are not trusted by their owners.

Hey, two out of three ain't bad...

 

[pb4uski]

I believe that checking my fund balances more than once every six months stunts their growth. I have three theories on this: one related to the Heisenberg Uncertainty Principle/Observer Effect, one based on similarities to the unknowable mystery of the illumination status of the refrigerator light, and one based on the loss of self-esteem and ability to thrive that equities suffer when they are not trusted by their owners.

Checking fund balances isn't a problem IMO, acting after checking fund balances increases the likelihood of underperformance.

 

[Richard4444]

you know that monkey who threw darts and outperformed fund managers? I want to hire that monkey.

 

[travelover]

you know that monkey who threw darts and outperformed fund managers? I want to hire that monkey.

Don't worry, he posts here several times a year trolling for new clients.

 

[rescueme]

I'm still waiting for a year when we don't get this question!

+1!

Since Alan uses the quarterly Wellesley Income distribution for current expenses, and the December distribution is usually the highest of the year, he can now do his Christmas shopping (momma needs a new diamond )...

 

[Bestwifeever]

you know that monkey who threw darts and outperformed fund managers? I want to hire that monkey.

Maybe my little monkey girl in my avatar has a hobby....

I confess to also being a little startled when the end of the day Wellesley price is shown as up a tad everywhere except the Vanguard website of our 401k holdings.

 

[Alan]

Since Alan uses the quarterly Wellesley Income distribution for current expenses, and the December distribution is usually the highest of the year, he can now do his Christmas shopping (momma needs a new diamond )...

Woohoo

That means DW will get 2 pieces of coal in her stocking this year.

 

[foxfirev5]

I hope no one bought these funds recently in a taxable acct.

 

[W2R]

Woohoo

That means DW will get 2 pieces of coal in her stocking this year.

Double woohoo!!! I am so thrilled to see what the distributions are this month. All in all, it looks like my dividends are going to be a few thousand more this year than last. Guess I'll know for sure when the other funds' December distributions come through.

 

[ejman]

Double woohoo!!! I am so thrilled to see what the distributions are this month. All in all, it looks like my dividends are going to be a few thousand more this year than last. Guess I'll know for sure when the other funds' December distributions come through.

I just noticed that Wellesley also had the first CG distribution since 2008. (A hefty one) I guess they must have finally run thru all the losses from the debacle.

 

[steelyman]

I'll be selling all the shares I've held (for a long time) in STAR and Total Stock Market. Since I can't buy them right back, sounds like a good time to join the Wellesley crowd

 

[Gatordoc50]

I'll be selling all the shares I've held (for a long time) in STAR and Total Stock Market. Since I can't buy them right back, sounds like a good time to join the Wellesley crowd

Why can't you buy them right back?

 

[steelyman]

Why can't you buy them right back?

Because of frequent trading policies. I don't want money sitting around like a rock, so Wellesley seems like a nice alternative.

 

[W2R]

I'll be selling all the shares I've held (for a long time) in STAR and Total Stock Market. Since I can't buy them right back, sounds like a good time to join the Wellesley crowd

Great! Several of us are happy with Wellesley for income. Glad for you to join us.

Sounds like a change in asset allocation?

 

[steelyman]

Great! Several of us are happy with Wellesley for income. Glad for you to join us.

Sounds like a change in asset allocation?

Is it? I thought STAR was close to Wellesley and Total Stock is of course a whole-market index. I'd be interested in opinions/advice.

 

[W2R]

If I'm not mistaken, Wellesley is ~37.43% stocks.

You'd be selling STAR, which I believe is ~63.04% stocks and of course selling Total Stock market would pull your AA even more away from equities (?).