EJ preferred fund families
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What families did you use most in your first year and what funds in each family? I have been using Franklin and their Mutual Series as well their Franklin US Gov Sec Fund, American’s ICA, Hartford’s Checks and Balances, as well as their Cap Ap fund. I just want to have a decent arsenal of the best funds to fit most people’s risk tolerance and goals that don’t want to be put in an advisory account. I want to do the best I can for them while still being new and still learning and beginning a lot of new relationships. My reasons for the funds that I currently use now is that I know the stories and can explain them to a client with confidence. Ultimately I want to know which wholesalers and funds to research further as I build my business so that I can feel confident in those funds as well so I figured it wouldn’t hurt to pick a few vets brains on good ol reg rep.
I’ve used mostly American funds, with some Lord Abbett and Frank/Temp. I have sold mostly A-shares, but I am looking more at C shares to help overcome customer sticker shock and provide a livable trail. I’ve become a big fan of Variable Annuities in certain demographics. The issue I’m having now is what to do with short term cash(up to 18 months), and I’m leaning more to a floating rate fund.
I've been buying Senior Loan UIT's, PIMCO Floating Rate bond fund, and Transamerica Short Bond (4.5% yield, real duration of 1, can buy at NAV with $250k). Also, PIMCO Unconstrained bond fund can go -3 duration. In case that helps...I’ve used mostly American funds, with some Lord Abbett and Frank/Temp. I have sold mostly A-shares, but I am looking more at C shares to help overcome customer sticker shock and provide a livable trail. I’ve become a big fan of Variable Annuities in certain demographics. The issue I’m having now is what to do with short term cash(up to 18 months), and I’m leaning more to a floating rate fund.
Also look at LALDX Lord Abbot Short Duration Income fund…yields over 5% low beta and pays 2.25% to you…it acutally did 17% in 2009 (fluke but nice). 2008 lost 1.09%…other than that never lost money in 10 years.
I think using Asset Allocation funds for accounts under 50k is a good practice. Franklin and Hartford’s are decent on the EJ platform. For shorter term money I use the Franklin Adjustable US Gov fund because it has a much shorter duration than the US Gov. I also use Pimco Low Duration although I don’t know if that is approved at Jones.
You should broaden your horizons while you are researching. I’ve found some good funds by looking at the Lipper info on smartmoney.com. They’ll tell you that the fund your looking at is ranked 135/372 and they’ll show you the top 10 in that category. You can find out what the better performers are and start researching that way.
Also, take a look at John Hanc***'s Lifestyle funds. Multimanager, risk based, fund of funds. It acts almost identically to Advisory Solutions. I've been using them a lot with money under $50K.Ive used Franklin’s US Govt Adjustable securities fund for short term cash (C Share). Yeilds roughly 2% with little to no movement of NAV.
I’m not EDJ. For short money I use Thornburg Limited Duration US Govt. 2.7% yield in the C share, hasn’t had a down year in the past 10. Very stable NAV. I pitch it against CDs and static money market with the caveat that it has to be held at least 12mos.
Fund is manged like a 10y US bond ladder, very low duration and turnover. Just consistent returns.
Using some shorter term muni funds; Legg Mason C shares offer no CDSC (none!) (SMLLX), generally telling clients there will still be shorter term volatility, but has strong track record. (Also like Thornberg, in general, for being no-nonsense money manager. Classic ladder techniques.)
The expense ratio is like 1.25%. Short term cash would be better off in ING. Throw it in intermediate muni's or something, they'd be better off.Ive used Franklin’s US Govt Adjustable securities fund for short term cash (C Share). Yeilds roughly 2% with little to no movement of NAV.
LALDX is a good choice, anyone have thoughts on any MFS? a couple of there products come to mind.