Not so worried about overlap, but a am worreied about the correlation.  Those 4 funds move in near lock step. Yes he could get neg or non correlated funds a American Funds, yes that would be good.  If I can find a small cap fund that is much less correlated then .95 the overall portfolio will better. In the end overlap is important, but correlation is more important.

I agree with SPiff.  And in my opinion, correlation is more of a factor than overlap.  Who cares about overlap?  One fund has 250 of the S&P 500, the other fund has the other 250.  Same return, highly correlated, no overlap.

That is where American Funds falls down.  They are good at one thing, and they get around not closing funds by just having more funds.

Having said that, I also still have several all-American portfolios.  You can get some decent diversification by choosing wisely.  Look at something like this (and I didn't actually looka t your current portfolio):

1. New World

2. Small Cap World

3. Capital World G&I or that new International G&I fund

4. Any ONE of their domestic G&I funds (stick to something with low international exposure like ICA)

5. High Yield Trust

6. Capital World Bond

7. Bond Fund

8. Short Term Bond

You pick the allocation %'s.

I do not swith out of American (as much as I would like to).  What I do sometimes is break off pieces and move them into ETF's for added diversification into niche classes, or I might use a select C-share for one or two asset classes.

The tough part about it is that I use those same fund families (Franklin, PIMCO, First Eagle) for all the reasons you stated.  However, I would never be able to switch into them.  I can only do it if set up at the beginning (either in C shares or by hitting breakpoints on a large case).  Although I rarely use PIMCO and Franklin together, as I think Franklin is almost on par with PIMCO as far as fixed income.  Although PIMCO has some interesting alternative strategies (most of which I don't use).

I never said that overlap and correlation are the samething. I agree that overlap is is not as important as correlation. My point is that if you owned the 4 american funds in quetion you are NOT diversified. Yes you have differnt asset classes but so what, there returns are so correlated that they are all going to move in the same direction.

Thanks, Spiff, Jack and B24. Any idea where I can find this correlation tool you guys are using because, yes, I do take it into account albeit without a tool. It would really make life easier. Thanks.

always do whats right for the client!

and this means have them pay as little commission as possible. even if the commission they would have paid is far less than the opportunity cost of far better funds.

I use Morningstar Advisor Workstation.

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Online Saving Accounts

Rather than going from A share to A share how about going to C share or fee based?  Fee based would probably work better as far as compliance is concerned.  I agree with compliance to a certain degree on this one since I would never switch someone from an A share to other A shares.  If I am understanding this correctly, that is what you are doing??  To regulars it could look like you are trying on purpose to miss breakpoints to maximize your compensation. 

[quote=I am legend]

Rather than going from A share to A share how about going to C share or fee based?  Fee based would probably work better as far as compliance is concerned.  I agree with compliance to a certain degree on this one since I would never switch someone from an A share to other A shares.  If I am understanding this correctly, that is what you are doing??  To regulars it could look like you are trying on purpose to miss breakpoints to maximize your compensation. 

[/quote]

How about not screwing the client and man-up and get some real biz?

You guys are making BS up just to do some gross.

[quote=Jennifer Nettles]

[quote=I am legend]

Rather than going from A share to A share how about going to C share or fee based?  Fee based would probably work better as far as compliance is concerned.  I agree with compliance to a certain degree on this one since I would never switch someone from an A share to other A shares.  If I am understanding this correctly, that is what you are doing??  To regulars it could look like you are trying on purpose to miss breakpoints to maximize your compensation. 

[/quote]

How about not screwing the client and man-up and get some real biz?

You guys are making BS up just to do some gross.

[/quote]

That is what I was trying to say...LOL

A classic Twainism!!  

[quote=I am legend]

A classic Twainism!!  

[/quote]

yes, my son.  you now have the path to enlightenment.

yes my son.     you

You're on here 9 in the evening, 9 in the morning...you would be the first to impose crap advice and distort people's intentions on this message board.

Are you even in the business?

[quote=anabuhabkuss]

You're on here 9 in the evening, 9 in the morning...you would be the first to impose crap advice and distort people's intentions on this message board.

Are you even in the business?

[/quote]

Im right

man up.    dont do tainted business flipping people for BS reasons.

get on the phone and earn it.

you know im right. 

you know there is no MF reason that you cant find same allocation or whatever in any of these large fund groups

So you are a elderly short asian man??  LOL

[quote=Jennifer Nettles]

[quote=anabuhabkuss]

You're on here 9 in the evening, 9 in the morning...you would be the first to impose crap advice and distort people's intentions on this message board.

Are you even in the business?

[/quote]

Im right

man up.    dont do tainted business flipping people for BS reasons.

get on the phone and earn it.

you know im right. 

you know there is no MF reason that you cant find same allocation or whatever in any of these large fund groups

[/quote]

You're not (right); You have absolutely nothing to offer anyone. Do not lecture me about cold calling either. I have brought in 5.2 million dollars this last quarter, alone. You know how I do it? I make a choice to not spend my entire mornings and evenings on a message board cowardly harrassing people from the safety of my monitor with elementary level grammar skills.