PONDX - What is your portfolio allocation?

[garya505]

For those of you that are fans of PONDX, what is your maximum portfolio allocation to it.

I'm currently at 20% but may go higher. I tend to limit any one investment to 20%, but I'm not sure I have a sound reason for that.

I know at some time the party will be over and this fund will revert to somewhat more "normal" returns, but for now I'm in it for the ride.

 

[bingybear]

I'm between 8 and 9%. But would you not be in PIMIX and not PONDX considering the ER?

 

[garya505]

I'm between 8 and 9%. But would you not be in PIMIX and not PONDX considering the ER?

I have been increasing my allocation to PONDX and have only recently reached the minimum for PIMIX, but yes I will be converting it to PIMIX.

 

[LuckyDog]

Currently in PIMIX at 17% of the portfolio. It has been awesome...

 

[euro]

You obviously have a very sizable portfolio if you make the 1MM threshold with less than 20%... that said, for something like a well diversified fund, I see no reason to limit to less than 20% - lots of folks have 90%+ of their assets in two or three index funds ("lazy portfolios"). So if you like PIMIX, go for it - the expense ratio is less than half that of PONDX, so that alone is a huge deal

 

[foxfirev5]

With Fidelity I got into PIMIX for 100K. However I'm reluctant to add more. It's a go anywhere fund and make sure you're not also venturing into EM Bonds or whatever they're holding currently.

 

[garya505]

You obviously have a very sizable portfolio if you make the 1MM threshold with less than 20%... that said, for something like a well diversified fund, I see no reason to limit to less than 20% - lots of folks have 90%+ of their assets in two or three index funds ("lazy portfolios"). So if you like PIMIX, go for it - the expense ratio is less than half that of PONDX, so that alone is a huge deal

I wish!

Actually on Fidelity the minimum for PIMIX is "only" $100,000.

 

[garya505]

With Fidelity I got into PIMIX for 100K. However I'm reluctant to add more. It's a go anywhere fund and make sure you're not also venturing into EM Bonds or whatever they're holding currently.

The way I understand it is that they are working the spread between US and Euro rates. When this changes, the party will be over and the extraordinary returns we have been seeing will be history.

edit: I also read somewhere that they are using some sort of "barbell". I'll see if I can find it.

 

[bingybear]

both schwab and fido are 100k to get in with a fee for pimix. The ER for PIMIX vs PONDX pays pack somewhat quickly, but the key is to buy in bulk. They charge every time you add. If you do fido auto investment for additional shares it is still affordable.

Who want 1MM to start?

 

[euro]

I wish!

Actually on Fidelity the minimum for PIMIX is "only" $100,000.

I

Did not know that. Well, good for you, garya!

 

[euro]

I believe if you get it through Pimco, it is 1MM. -- alas, no trading fees or loads, nearest I can tell

 

[bingybear]

I believe if you get it through Pimco, it is 1MM. -- alas, no trading fees or loads, nearest I can tell

for 100k you get to pay a trading fee at fido or schwab, but the ER drops and the 12b1 fee doesn't exist. So worth it if you hold the fund for a while. Lower over all fees if you buy enough to get PIMIX

 

[foxfirev5]

The way I understand it is that they are working the spread between US and Euro rates. When this changes, the party will be over and the extraordinary returns we have been seeing will be history.

edit: I also read somewhere that they are using some sort of "barbell". I'll see if I can find it.

It's a moving target. Hopefully they'll zig before getting caught in a zag. After all that's what we're paying them the ER to accomplish.

 

[aja8888]

Looking at my Vanguard account, I see I can get into PIMIX for a $25 K minimum.

 

[conversationalphrase]

I'm at about 7% with PONDX,
I may go more. The Sharpe ratio is amazing! I need to check out PIMIX through Fidelity.

 

[euro]

It's a moving target. Hopefully they'll zig before getting caught in a zag. After all that's what we're paying them the ER to accomplish.

That's why getting into PIMIX is important (ER is 0.47 - about half of what the regular shares are). I looked into the most similar Fidelity offering and they charge 0.7% ER, so PIMIX is a deal

 

[garya505]

Update - I'm at 24% now. Still waiting for this thing to run out of it's magic pixie dust. Total assets are close to $100B now.

 

[conversationalphrase]

I'm in at 16% (PIMIX). I wonder what the chances are on closing it to new investors?