I want to share an update on some recent changes that I made to my portfolio.
There was a very small change to the lineup of options in Morningstar’s 401k, with the addition of Templeton Global Bond (ticker TPINX). This fund, which is rated Gold by other Morningstar analysts, specializes in emerging markets debt and is known for taking concentrated positions in potentially risky countries. For example, the fund bought Irish bonds during the 2011 eurozone crisis, and then added Ukrainian bonds during that country’s conflict with Russia.
Rome.
This means the fund is not for everyone. It can potentially be very volatile, which is not something most people want out of a bond fund, and it can lag competitors while waiting for its bets to pay off. But, over time, its strategy has led to some of the best returns in its category. I previously held Templeton Global Income (ticker GIM) in my Roth IRA, which is a different way to access the same strategy. Now that I have access to the fund through my 401k, there’s no reason to hold GIM, so I sold it.
I used the proceeds from that sale to buy Artisan Thematic, ticker ARTTX. This is different from TPINX in that it owns stocks rather than bonds, but it is similar in that it runs a highly concentrated, aggressive strategy. This is also a very new fund, just launched in April 2017, and its fees are higher than I would normally be comfortable paying. Altogether, this is not a fund I would recommend that most people own. But I’ve been following the fund since it launched and find the strategy is compelling, and I am comfortable with the risks given how early I am in my career.
I also sold PIMCO Real Return in my 401k and reallocated the money across funds I already own. Upon some reflecting, I realized that I didn’t need that fund on top of the other bond and commodity funds that I also own, especially given my age. Better to put that money to work in stocks.
To recap: I sold PIMCO Real Return and Templeton Global Income, and bought Templeton Global Bond and Artisan Thematic.
If you have any questions about these funds or why I made these changes, feel free to shoot me an email. The My Portfolio page has been updated with the new holdings and allocations.