Eagle Vertical Income Portfolio
- Thread starter calnomore
- Start date
RetireeRobert
Thinks s/he gets paid by the post
Not aware of it until your post here.
Looks like they attempt a slightly higher return with slightly lower risk.
I did not see any "expense ratio" mentioned in your attached brochure, and from the way your link describes, it seems this is a Schwab portfolio management service for certain clients? Wonder what the fees are for that service?
Looks like they attempt a slightly higher return with slightly lower risk.
I did not see any "expense ratio" mentioned in your attached brochure, and from the way your link describes, it seems this is a Schwab portfolio management service for certain clients? Wonder what the fees are for that service?
Markola
Thinks s/he gets paid by the post
I think it’s kind of expected these days to be transparent about fees and I didn’t see any listed, so that’s one red flag. Second, it was created in 2016 and I like ten years of performance. Third, 60 securities is not very diversified. I’d look at the respected Wellesley fund if I wanted a proven income fund, which is 40 years old, has 1,200 securities, dirt cheap expenses and much better performance than this Eagle fund.
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OldShooter
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Well, the results are reported "before fees." That's a one-strike-and-you're-out criterion for me. Obviously, if they can report misleading composite results from multiple portfolios gross of fees they can also report honestly, net of fees on those portfolios. I'm surprised the SEC even allows this but obviously there is some kind of loophole.
Interesting too, that the amount of the fees is not stated.
You see it from time to time, but it's always seemed crazy to me that the CPI should be part of an investment target. The CPI is not correlated to the market, so long term success is a crap shoot. Short term success in the current inflationary environment is a slam dunk though, so that's maybe why they like that measurement. (Here: https://fred.stlouisfed.org/graph/?g=dGn Drag the slider to cover the whole period 2011 to present.)
I would suggest sticking with a blended fund or an AA that you like and that does not involve high fees. There is no magic and there are no magicians.
RetireeRobert
Thinks s/he gets paid by the post
Actually, the linked brochure "does" report returns both "gross" and also "net" (after fees), so there is indirect disclosure of the result of fees.
And the fine print notes at bottom of brochure do say: "Performance is shown both gross and net of the maximum Select fee
for a strategy at the typical minimum account size in effect during the
period. For purposes of showing net of fee performance in this document,
the applicable maximum Select fee amount is deducted by Morningstar in
the last month of each quarter. In an actual account, the fee calculation,
as described in the Schwab Managed Account Services Disclosure
Brochure in the section entitled “Program Fee”, will be different because
(i) the Select fee is deducted from a client’s account quarterly based on a
daily calculation of the value of the assets in the account; and (ii) amount
of the fee will vary depending on the amount of assets in the account."
So, there is that.
And the fine print notes at bottom of brochure do say: "Performance is shown both gross and net of the maximum Select fee
for a strategy at the typical minimum account size in effect during the
period. For purposes of showing net of fee performance in this document,
the applicable maximum Select fee amount is deducted by Morningstar in
the last month of each quarter. In an actual account, the fee calculation,
as described in the Schwab Managed Account Services Disclosure
Brochure in the section entitled “Program Fee”, will be different because
(i) the Select fee is deducted from a client’s account quarterly based on a
daily calculation of the value of the assets in the account; and (ii) amount
of the fee will vary depending on the amount of assets in the account."
So, there is that.
OldShooter
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I missed that one. What I saw was
"The Manager represents that its composite data is based on the following guidelines: the composite’s returns are reported before fees ..."
But I would argue that any presentation of results gross of fees is an attempt to mislead. A few years ago an investment committee that I was on heard a pitch from a salesperson who claimed that she was showing us gross of fees data because calculating net of fees was very difficult for them. We sent her packing.
RetireeRobert
Thinks s/he gets paid by the post
Good decision.
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Nope. Nope. Nope.
First page, last sentence of paragraph: "The average total portfolio yield of the strategy over the last four years has been around 3.5% to 4%." Annoyingly vague. Being cynical, I suspect their lack of precision is attempting to hide something.
Second page, middle of paragraph: "Once issuers are approved, the team examines the capital structure of each company and generally invest in the highest yielding asset class of that issuer." Parallel construction error - "team" cannot be both singular and plural in the same sentence.
I expect this kind of imprecision and grammatical errors in blog posts. I am surprised and disappointed when I see it in print. It's a no-go when I see it in investment prospectuses which should be spell checked, grammar checked, and then checked again.
There's also the cheesy "VIP" acronym and what seem to me to be high fees.
Oh, and if I were king I would also change it to "de facto" (second page middle of paragraph), but that's the OCD nitpicker in me coming out most strongly.
First page, last sentence of paragraph: "The average total portfolio yield of the strategy over the last four years has been around 3.5% to 4%." Annoyingly vague. Being cynical, I suspect their lack of precision is attempting to hide something.
Second page, middle of paragraph: "Once issuers are approved, the team examines the capital structure of each company and generally invest in the highest yielding asset class of that issuer." Parallel construction error - "team" cannot be both singular and plural in the same sentence.
I expect this kind of imprecision and grammatical errors in blog posts. I am surprised and disappointed when I see it in print. It's a no-go when I see it in investment prospectuses which should be spell checked, grammar checked, and then checked again.
There's also the cheesy "VIP" acronym and what seem to me to be high fees.
Oh, and if I were king I would also change it to "de facto" (second page middle of paragraph), but that's the OCD nitpicker in me coming out most strongly.
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
yup. I couldn’t get past “Eagle Vertical Income Portfolio”. What is vertical income? Surprising to see that kind of hype from Schwab. I take it they use “Eagle” for several in-house products?
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Eagle actually seems to refer to the name of the investment advisory company that is actually doing the investing. See "Firm" in the top right corner of page 1.
ncbill
Thinks s/he gets paid by the post
just stick with Wellesley if you want an income fund.
